Strong demand has surged through Brisbane's industrial property sector, with $366 million worth of industrial assets above $5 million changing hands according to the latest research from Colliers International.
The exchange of an unconditional contract of sale for the Coca-Cola Amatil facility at Richlands for $156 million topped off surging first half demand for the sector, according to Colliers International.
State Chief Executive Simon Beirne reported strong current mandates from both onshore and offshore capital seeking quality investment grade holdings in Queensland.
"Whilst a lot of the commentary has been around offshore buyers, we are seeing a strong resurgence of domestic capital, particularly superannuation groups," he said.
The report further indicated that the supply of investment grade offerings has hampered sales volumes, with total volumes down 29% compared with the first half of 2016.
At the smaller end of the market, demand amongst private investors in the sub $20 million category is reported as strong.
Colliers International Director Anthony White said private investors in the sub $20 million space were being attracted by strong yields on offer compared with other asset classes.
“We have seen buyers willing to take on more risk as supply dries up, with specialised assets such as cold stores and food grade offerings trading well," he said.
At the low end, Colliers International have reported increasing confidence from owner occupiers, with their agents recording 25 transactions to owner occupiers under $10million in the six months to June.
Demand has been strongest in the core industrial precincts surrounding the Australia TradeCoast and Logan Motorways, with enquiry and mandates surging in all size ranges.
Moving forward Colliers International are predicting a similar strong second half performance for 2017.
“Supply will remain the key constraint to increased deal volumes,” Mr White said.
“New developments should help fill the gap, with several large industrial facilities due for completion in the second half.”
