The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Interested in a Corporate TUD+ Membership? Access premium content, site tours, event discounts and networking opportunities
Interested in a Corporate Membership? Access exclusive member benefits today
Enquire NowEnquire
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Partner Lab
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
15
print
Print
IndustrialDinah Lewis BoucherTue 10 Mar 20

Eastern Seaboard Vacancy Rate to Remain as Supply Falls

Australia has experienced solid occupier demand for industrial space in recent years, particularly across the eastern seaboard with the average vacancy rate sitting around 3.8 per cent.

Demand for space in Queensland’s south-east industrial precinct remains strong, with vacancy rates 28 per cent lower than this time last year according to Stockland Logistics general manager Tony D’Addona.

The ASX-listed developer Stockland has recently completed stage two of its 9.6 hectare $70 million logistics development in Yatala, located between Brisbane and the Gold Coast.

The group secured three new 10 year leases at its Yatala distribution centre, securing more than 18,993sq m of the new facilities to Simtech Creations, Crimsafe Security Systems and OzWide Group.

In nearby Logan City, south of Brisbane, work has kicked off on a new $70 million industrial development, the M6 Connect, which will be developed on the final 10 hectares of a 100 hectare industrial land holding in Meadowbrook.

The site is owned by the Brisbane-based Hoare family, who has joined forces with advisory Development Directive on the Meadowbrook project.

Related: Adelaide Commercial Transactions Hit $2bn

▲ The Meadowbrook estate, south of Brisbane, will feature 19 warehouses.


In Melbourne's Truganina Stockland recently completed the a $44 million Key West distribution centre.

While Melbourne-based fund manager Quintessential Equity offloaded its industrial property in Noble Park for more than $14 million, selling on a 5.74 per cent yield.

The industrial and logistics sector also saw Singapore fund manager ARA Asset Management swipe a majority stake in the billion dollar Logos group this month.

Founded in 2010, Logos has a completed value of $8.9 billion across 17 projects, and operates across eight countries in the Asia Pacific region.

Strong occupier demand amid low vacancy

Australia’s industrial markets recorded solid levels of leasing activity last year, comparable to the 10-year annual average of 2.1 million square metres, according to the latest JLL findings.

“Over the year there was a notable increase in take-up levels within the Melbourne market,” JLL’s director of research Sass J-Baleh said.

“This represented the highest share of national take-up in 2019, at 40 per cent.”

▲ JLL Research: 4Q 2019


The JLL report expects demand in the sector to continue - supported by domestic growth factors, such as population and non-discretionary retail growth, along with demographic changes, “mainly within the world’s emerging markets”, J-Baleh said.

“Although the 2020 development pipeline is comparatively high, around 50 per cent of this pipeline has already secured pre-commitment.”

“The eastern seaboard vacancy rate is expected to remain, if not further decline, over the short to medium run, as the supply pipeline begins to fall post-2020.”

Speaking on Western Australia’s market, J-Baleh says if the economy begins to rebound over the next year, Perth vacancy levels may also begin to decline.

“Which would in turn see Australia’s average vacancy rate fall below 5.9 per cent by the end of 2020, early 2021.”

IndustrialAustraliaGold CoastBrisbaneMelbournedo not useConstructionReal EstateConstructionDeal
AUTHOR
Dinah Lewis Boucher
More articles by this author
ADVERTISEMENT
TOP STORIES
Exclusive

Brains, Guts and Determination: How Salvo Property Shapes Melbourne’s Skyline

Marisa Wikramanayake
5 Min
Fraser and Partners founder Callum Fraser
Exclusive

Saving Our CBDs: Architect’s Blueprint Paves Way for Office-to-Resi that Works

Leon Della Bosca
8 Min
Exclusive

Watchdog’s Court Loss Throws Spotlight on Union Balancing Act

Clare Burnett
6 Min
Time and Place's The Queensbridge Building at 90 Queens Bridge Street in Melbourne's Southbank.
Exclusive

Innovation Keeps Time & Place’s Southbank Skyscraper Rising

Marisa Wikramanayake
6 Min
Breathe Architecture founder Jeremy McLeod in front of his Featherweight Home design
Exclusive

Nightingale Founder’s Bid for Affordable Architectural Kit Homes

Leon Della Bosca
7 Min
View All >
Westmead Gene Technologies Building EDM
Life Sciences

Plans for $272m Parramatta Biomedical Facility Go Public

Clare Burnett
Novus on Victoria Chatswood
Build-to-Rent

Novus Plots Second BtR Tower for Chatswood

Renee McKeown
West End Stockwell Vulture Street DA hero
Development

Stockwell Files Tower Plans in West End Stomping Ground

Phil Bartsch
The 16-storey mixed-use proposal comprises 132 apartments and 602sq m of retail/commercial tenancies...
LATEST
Westmead Gene Technologies Building EDM
Life Sciences

Plans for $272m Parramatta Biomedical Facility Go Public

Clare Burnett
3 Min
Novus on Victoria Chatswood
Build-to-Rent

Novus Plots Second BtR Tower for Chatswood

Renee McKeown
2 Min
West End Stockwell Vulture Street DA hero
Development

Stockwell Files Tower Plans in West End Stomping Ground

Phil Bartsch
3 Min
PBSA DA Hindmarsh Square student accomodation tower
Student Housing

Student-Friendly Adelaide Draws 35-Storey PBSA Proposal

Renee McKeown
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/eastern-seaboard-vacancy-rate-to-remain-as-supply-falls