COAST IN­DUS­TRIAL RENTS UN­DER PRES­SURE: RE­PORT

The Gold Coast Bulletin - - PRIME SITE - ALIS­TER THOM­SON

HERRON Todd White’s fi­nal month in re­view for the year con­cerns the up­ward pres­sure on in­dus­trial rents due to a short­age of stock.

The val­u­a­tion firm notes in its re­port that the mar­ket for in­dus­trial leas­ing has tight­ened, re­sult­ing in a no­tice­able lift in rental lev­els.

It gives 35 Alex Fisher Dr, Burleigh Heads, which hosts a 910sq m brick and ma­sonry build­ing, as an ex­am­ple. “It was built be­tween the 1970s and early 1980s with be­low av­er­age clear­ance and over­all is age­ing in pre­sen­ta­tion,” the re­port reads.

“The rent achieved re­flects $146 per square me­tre of let­table area gross (ex­clud­ing GST). A sim­i­lar prop­erty at 21 Ac­tiv­ity Court, Molen­d­i­nar was leased in Jan­uary, 2017, for circa $138 per square me­tre per an­num gross, in­di­cat­ing growth of up to 6 per cent in a rel­a­tively short pe­riod of time.”

The re­port says con­crete-tilt panel build­ings of a sim­i­lar size as at 35 Alex Fisher Dr are be­ing leased for in ex­cess of $160sq m, whereas a year ago it was in the range of $140$155sq m. “In­ter­est­ingly, price lev­els for in­vest­ment prod­uct have not jumped as sig­nif­i­cantly as owner-oc­cu­pier sales, mean­ing that in­vest­ment re­turns have im­proved,” the re­port reads.

It con­cludes that the in­dus­trial mar­ket has gone from strength to strength in the past year, how­ever, the fu­ture is un­clear “par­tic­u­larly given con­cerns over the pre­dic­tion of an up­ward in­ter­est rate move­ment”.

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