Sector bouncing back
QUEENSLAND’S tough border policies during the COVID-19 pandemic has enabled the industrial sector to bounce back from the lows of 2020, according to a new Ray White report.
The Between The Lines Yatala Industrial Overview released this month, covering Yatala, Ormeau, Beenleigh, Stapylton and Upper Coomera, covers the second half of 2020 and the early part of 2021.
Ray White Commercial head of research Vanessa Rader said there had been a “vast rebound in activity” for the period covered by the report.
“The stringent border controls of Queensland during the COVID-19 pandemic have done much to swing interstate migration back in the state’s favour which creates new opportunities for small business and the local economy,” Ms Rader said.
“While the uplift is encouraging, fundamentals need to continue to be considered, with supply needing to be demand-driven while improvements in values and rents to be at marketsustaining levels.”
Ray White Industrial M1 North sales and leasing consultant Lisa Dunne said 2020 saw limited new supply enter the market.
“The major project currently under construction is the Pacific Optics facility at Yatala Central. The warehouse at Bluestone Court will be 9107sq m and include a half-court basketball court, due for completion in August,” she said. There are 14 more projects with development approval, including 157 Stapylton-Jacobs Well Rd and 46 Yellowood Rd which offers 21,000sq m of space across 92 units.
Ms Dunne said the second half of 2020 showed “remarkable results” with $99.79m worth of industrial real estate changing hands.
This was well above the first six months where under $60m changed hands in the YEA.
“While the second half result was aided by the cold storage facility transaction at 1 Lahrs Rd, in Ormeau for $43m by listed REIT Centuria, there were a further 47 transactions during this period,” Ms Dunne said.
“This result highlighted the strong demand for smaller industrial stock, with the average sale price (excluding this larger sale) of $1.2m, ripe for both the owner-occupier and private investment market, taking advantage of the current low-interest rate environment.”