One of the biggest conversations in Queensland commercial property right now is supply, and Brisbane simply isn’t creating enough commercial property to keep pace with demand.
New research from the Property Council of Australia and SA1 Property has highlighted just how tight conditions have become, particularly across Brisbane’s industrial market.
Greater Brisbane is currently absorbing around 205 hectares of industrial land each year, with existing supply potentially exhausted within the next five years. Industrial outdoor storage is even tighter, with sites across Brisbane reportedly 96.87% utilised.
Industrial Property Remains in the Spotlight
Brisbane’s industrial market continues to benefit from population growth, infrastructure investment and strong demand from logistics, trade, service and distribution businesses.
Approximately 3.39 million sqm of industrial floorspace has been delivered since 2019, yet demand continues to put pressure on available land and buildings. Prime industrial rents have also increased by approximately 50% since 2019.
For owners of well-located warehouses, freestanding industrial properties and hardstand sites, scarcity is becoming an increasingly important part of the value equation.
It’s Not Just Industrial
Brisbane’s office market is also attracting attention.
Combined with a constrained future development pipeline, Brisbane’s combination of rising rents, limited supply and continued population growth is keeping the commercial market firmly in the spotlight.
What Does This Mean for Property Owners?
Limited supply doesn’t mean every commercial property will automatically increase in value. Location, lease structure, tenant quality, rental income and development potential remain critical.
However, with suitable commercial sites becoming increasingly difficult to secure, owners may find it worthwhile to reassess where their property sits in today’s market.
Thinking about selling, leasing or simply curious about your property’s current position? Speak with the My Agent Aus team for straightforward commercial property advice.