Recent research has found there was a significant amount of interest in industrial property in the Brisbane area in 2022. Vacant space decreased by 14% in the fourth quarter and was 65% lower than a peak reached in 2021; it is currently at its lowest level in ten years.

According to the Australian Industrial Review – Q4 2022, 1.1 million square metres of industrial space was taken up in Brisbane for 2022, a record amount and the most across East Coast markets for the year.

Rentals rose across all four major cities during 2022, with Perth leading the way (41%), followed by Sydney (29%), Melbourne (19%) and Brisbane (15.5%). Prime net face rents were highest in Sydney ($210/sq m), then Brisbane ($137/sq m), Perth ($133/sq m) and Melbourne ($126/sq m).

Take up was highest in the South West region of Brisbane, which is consistent with the observation that leasing activity remained at a high level throughout the course of the fourth quarter. The most active users of leased space were those involved in the transportation, postal, and warehouse industries.

While there were no finished spaces available, the majority of the vacant area was filled by speculative developments that were still in the construction phase.

Despite some setbacks brought on by shortages of labour, resources, and favourable meteorological conditions, supply increased throughout the year. It is anticipated that this will result in a growth in rental rates between five and ten percent over the course of 2023; however, this growth is likely to slow from previous increases.

Since the fourth quarter of 2022, land values have decreased by $10/m2 to $20/m2, while yields have decreased by 15 to 30 basis points overall.