Industrial property is one of the most sought-after asset classes in Australia, with Queensland in the spotlight. Strong population growth, expanding logistics networks, and limited supply are driving investors toward industrial assets for both income and long-term growth. The key question remains: what yield should you expect?
Understanding Industrial Property Yields
“Yield” refers to return on investment:
• Gross yield = Annual rent ÷ Purchase price
• Net yield = Income after expenses ÷ Purchase price
Net yield is the more accurate measure, reflecting true returns after costs.
Current Industrial Yields in Queensland (2025–2026)
Yields have tightened due to strong demand and rising values:
• Prime industrial (Brisbane metro): ~4.5% – 5.5%
• Secondary assets: ~5.5% – 6.5%
Prime Brisbane assets are averaging around 5.3%, with tighter yields in premium locations.
Why Yields Have Compressed
• Growth in e-commerce and logistics demand
• Limited supply of serviced industrial land
• Strong population growth
• Low vacancy and high tenant demand
What’s a “Good” Yield?
• 4.5% – 5.0% → Prime assets, lower risk, stronger growth
• 5.0% – 6.0% → Balanced income and growth
The national average sits around 4.9%, reflecting strong confidence in the sector.
Yield vs Growth
Focusing only on yield can be a mistake. Industrial property is a total return play, combining income and capital growth. Yield compression often signals rising asset values.
Industrial property in Queensland remains a resilient, high-demand sector. While yields are lower than in the past, they are supported by strong fundamentals. The opportunity lies in securing the right asset in the right location, not just the highest yield.