Any developer worth their weight in salt knows that the property market, while not predictable, is cyclical. If you believe the media, Queensland residential is sitting in oversupply on the property clock and, conversely, the industrial property market sits in under-supply.
Therefore, it is not surprising that industrial development is booming across South East Queensland. According to Deloitte in February 2018, big-box retail and industrial property markets have become the best performing segments, with the stronger performance of the manufacturing sector seeing improved demand for industrial property. The report further predicts that there will be strong and continued capital growth for industrial development in the near term. This is fantastic news for Brisbane and South East Queensland industrial developers, as the industrial boom appears to be here to stay.
EXPLORING BRISBANE’S NEIGHBOURING REGIONS
Industrial development within the Logan City and Moreton Bay regions is especially popular due to their close proximity to Brisbane city, Brisbane Airport and major transport routes for the area. Logan is predicted to be one of the fastest growing cities in Queensland, with job growth expected to grow with the population. This calls for support for one of the city’s key industries – construction. Similarly, the Moreton Bay Region is currently invested in providing opportunities for local business growth and new business investment to support its growing population.
Niclin Group has undertaken five projects in Brendale, a rapidly developing industrial area located in the Moreton Bay Region of South East Queensland. According to Remplan, the Moreton Bay Region is the key growth corridor of Brisbane. The area’s competitively priced commercial land has attracted over 25,000 businesses, actively supporting Queensland’s strong economic performance.
Brendale is conveniently located 17km north-west of central Brisbane, providing industrial developers, owner-occupiers and tenants with many perks. With its close proximity to the city and the airport, its predicted business growth and its competitively priced land, the suburb will see plenty of industrial development in the near future as a fantastic location for developers. To read more about our Brendale projects, take a look at Cutler Court, TJM Warehouse and Civic Warehouse.
Source: Brendale, Queensland Places.
BRISBANE’S INDUSTRIAL DEMAND
This year’s Draft Brisbane Industrial Strategy explains that Brisbane has a long history as a major industrial hub of South East Queensland, and the strong demand for industrial land is constantly growing. As the industrial sector contributes to 15% of all employment in Brisbane, it appears that businesses are relocating to conveniently nearby industrial areas to accommodate the growth in population, employment and demand.
With many industrial developers heading out to Brisbane’s neighbouring regions, the city is clearly under pressure to attract industrial development. This year’s Draft Brisbane Industrial Strategy explains that, “Industrial land in Brisbane is in much shorter supply than is needed to sustain existing demand … Brisbane’s future industrial growth is significantly constrained by a lack of industrial land.”
Although Brisbane city may no longer be the go-to for industrial development, that’s not bad news for developers. With plenty of other options in the city’s neighbouring regions, such as the Logan City and Moreton Bay regions mentioned before, the South East Queensland industrial boom is well and truly underway.
If you would like to start a conversation about the design and construction of your industrial development, contact Niclin Group today.