Brisbane Industrial Property 2016 – 2026
Report Published: August 2016
… is the latest in our annual series of studies on the prospects for the industrial property leasing and investment markets in the Brisbane metropolitan area.
It provides careful analysis of the drivers of demand for and supply of new space, vacancy rates; prime and secondary face and effective rents, leasing incentives, investment yields and property values; then provides 10 year forecasts for each of the variables. The emphasis is placed on the strategic implications for construction, leasing and investment, pointing out market-specific opportunities and risks.
The latest study finds that the divergence between investment and leasing markets remains locked in place: the former being swept along by the global search for yield in a (very) low interest rate environment, the latter being relatively weak as a result of the downturn in resources investment. Nonetheless, investors demand is fanning construction activity, driving up vacancies and intensifying competition for tenants, which in turn depresses face rental growth and forces up incentives.
In the report we tackle the big questions: How long can this situation persist? What is the connection between industrial property and interest rates? What could trigger a rise in interest rates, when is it likely to happen and by how much could they increase? What are the implications for construction and development? When will the Queensland economy start to recover? What sector(s) will be the main driver(s) of demand for industrial space? What is the outlook for rents, yields and prices across the prime and secondary sectors over the coming 10 years? What returns can investors expect from industrial property in Brisbane and are they likely to meet their expectations?
REPORT – 2016
Adobe PDF document files for download by subscribers.
REPORT: BRISBANE INDUSTRIAL PROPERTY 2016 – 2026 (pdf, 773 KB)
EXCEL TABLES – 2016
Excel document files for download by subscribers.
2016 MAIN REPORTS TABLES (xls, 233 KB)