Demand Through The Roof For Brisbane Industrial Space

The level of available space within the Brisbane Industrial market has decreased for the fourth consecutive quarter to now sit at 621,616m,² according to Knight Frank's Brisbane Industrial Vacancy Analysis - July 2016 report.

The reduction over the past quarter represented a 2.3% fall, with the total available space now 10.9% lower than a year ago. Prime vacancy decreased by 15.0% over the quarter off the back of strong take-up and limited new additions. In contrast, secondary space increased by 9.9% with all of the additions to vacant space over the quarter categorised as secondary. Completed speculative development accounts for 11% (69,452m²) of the total vacancy with speculative space under construction sitting at 2% with no building commencements in the quarter, however there are two larger projects at earthworks stages which are expected to progress in the short term. Total speculative stock has stabilised over the past year with new additions generally being balanced by leasing activity.

Quality
Prime vacancy has decreased again over the past quarter and appears to be maintaining a steadily improving trend, decreasing by 25.0% over the past year to 265,059m². The average time on the market for prime stock is currently 17.7 months, however this is influenced by a number of properties which have been on the market for some time, as the median time on the market is 12.0 months. Available secondary space increased by by 9.9%, over the past quarter to be 365,557m², accounting for 57% of the Brisbane total. The amount of available secondary space has continued to fluctuate and remains stubbornly high at a level 3.2% above a year ago.
Distribution by precinct
The TradeCoast, North and South markets recorded modest increases of 3.6% (5,371m²) , 3.4% (1,700m²) and 4.5% (11,127m²) respectively over the past quarter. The Greater North, South West and South East markets all recorded improvements with falls of –3,300m² (20.8%), -10,174m² (10.3%) and –19,396m² (24.9%) respectively. Most of the precincts continue to have a good balance between prime and secondary space available, the exceptions are the long-established South precinct where secondary space accounts for 67% of the total 256,826m² available and the North where 68% of the 51,371m² available is secondary space.
Stock takeup
There was greater take-up in prime accommodation, accounting for 59% of absorption, the largest being 628 Kingston Rd, Loganlea (13,900m²) and 70 Darlington Drive, Yatala (11,277m²), both boosting the South East take-up. There was also good take-up, of exclusively secondary space, in the South which recorded 29,396m²