Shortage of industrial land presents lucrative investment opportunity

28 March, 2024 – Brisbane's industrial market is experiencing an unprecedented surge in demand from occupiers seeking strategic logistics solutions. The rapid growth of e-commerce has intensified the need for warehouse facilities that offer immediate access to consumers. By strategically positioning stock close to end consumers and efficient freight corridors, logistics operators can significantly reduce transport costs and travel times, meeting the evolving demands of modern commerce. 

The Southwest submarket of Brisbane, particularly Wacol, has emerged as a hotspot for industrial development, driven by its connectivity to major arterial road networks and its strategic position within the Western growth corridor. Recent investments in transport infrastructure have further fueled tenant demand, resulting in a substantial decrease in available land for development. 

In 2023 alone, the Southwest submarket witnessed a staggering take-up of approximately 275,000sqm, compared to a long-term average of 120,000sqm. Moreover, strong fundamentals within the area led to an impressive 18% rental growth in 2023, accompanied by a remarkable 54.5% increase in land values since 2021. 

Investors now have a unique opportunity to capitalise on the severe shortage of larger-scale land holdings within Wacol with Garda Property Group looking to sell a DA Approved high-profile site spanning 41,360sqm at 372 Progress Road, Wacol.  The site is strategically positioned 15kms from the Brisbane CBD with outstanding access to major arterials including the Ipswich Motorway, Centenary Highway and Logan Motorway.  The site has an approval in place for 14,876sqm of Gross Leasable Area (GLA), which could be amended to potentially accommodate up to 16,700sqm.  Proceeds from the sale of this site will be recycled into Garda’s development pipeline on Brisbane’s northside. 

Gary Hyland, Matt Richards, and Henry Devine of Cushman & Wakefield, alongside Mark Gilbride and Michael Callow of CG Property have been appointed to sell the site via Expressions of Interest closing in May. 

Gary Hyland highlighted that this is an opportunity for local and national owner-occupiers and developers, to secure a high-profile significant land holding emphasising  “the flexibility for incoming purchasers to alter the current Development Approval to increase GLA to approximately 16,700sqm, subject to final design. 

Mark Gilbride from CG Property underscores the strategic importance of Wacol's proximity to key logistics infrastructure, noting that “Within a 45-minute radius, approximately 1.9 million residents can be reached, representing a total expenditure pool of approximately $102 billion. This proximity to key logistics hubs has been a driving force behind the robust occupier demand for central industrial precincts like Wacol”. 

Mr Hyland said “This sale presents a rare opportunity for developers to enter a market with unprecedented tenant and occupier demand, coupled with limited large-scale land opportunities above 2 hectares in the Wacol precinct. “With land values soaring by 54% since 2021 in the Western corridor, this investment opportunity holds significant promise for those seeking to capitalise on Brisbane's burgeoning industrial market”.