Warehouse Demand Surges in Queensland

Warehouse Demand Surges in Queensland

Warehouse Demand Surges in Queensland

South East Queensland’s warehouse and industrial sector has maintained remarkable strength through the second half of 2025. Gross take up of industrial space reached approximately 315,000 m² in Q3, exceeding the total leasing activity recorded during the same period last year. Vacancy remains exceptionally low at around 3.7%, highlighting sustained occupier demand across key industrial precincts such as the Trade Coast, Logan, and the M1 Corridor. This strong leasing performance reflects the continued depth of demand for quality logistics and warehousing assets across the region.

Throughout 2025, supply has been steady but controlled, with around 168,000 m² of new warehouse and industrial space completed in the June quarter. Despite these additions, the market remains undersupplied, and prime industrial land continues to be tightly held. Modern, high clearance warehouse facilities with excellent transport connectivity remain in particularly high demand, driving steady rental growth and strong competition among tenants.

On the investment front, warehouse and logistics assets have continued to attract significant capital. Transaction volumes for industrial assets above $5 million reached around $333 million in the first quarter of 2025, reflecting the market’s enduring appeal. Prime yields have stabilised, supported by consistent rental growth and strong investor confidence in the long term fundamentals of the SEQ industrial sector.

Looking ahead, the outlook for South East Queensland’s warehouse market remains positive. Ongoing population growth, infrastructure investment, and the sustained expansion of ecommerce are expected to support further demand. While new supply is gradually entering the market, persistent land constraints and robust leasing activity suggest conditions will remain favourable for owners and developers well into 2026. Whether you’re an investor looking to expand your portfolio or an occupier searching for space to grow, now is the time to act strategically and stay informed.

Talk to the My Agent Aus team today to discuss how we can help you secure the right industrial property in this fast moving market.