Innovation is changing the logistics landscape, enhancing operations and at the same time, adapting to changing technology, economic environments and environmental concerns. Here are some of the things we’re hearing about and seeing in regards to the future of industrial property:

Automation and Robotics

The integration of automation and robotics is leading the way in industrial property innovation. Warehouses and logistics centres are increasingly adopting automated storage and retrieval systems (ASRS), autonomous forklifts, and drones for inventory management. These technologies offer faster processing times, reduce human error, and can operate continuously, which significantly boosts productivity.

Green Industrial Buildings

As with retail and office, sustainability is a key focus for the future of industrial buildings. The adoption of green building practices, including solar panels, wind energy, and eco-friendly materials, is rising. These initiatives reduce the carbon footprint of industrial activities and result in significant cost savings over time. Rainwater harvesting, natural lighting, and geothermal cooling systems are other examples of industrial properties becoming more environmentally friendly.

Smart Warehouse Technologies

The “smart warehouse” is another innovation. Internet of Things (IoT)-enabled devices can track inventory levels, monitor equipment health, and improve security measures. Advanced analytics and AI offer predictive insights for maintenance, optimising operations, and enhancing supply chain efficiencies. These technologies ensure warehouses and logistics centres can adapt quickly to changing market demands and minimise downtime.

Advanced Materials and Construction Techniques

Innovations in construction materials and techniques are enabling more durable, efficient, and rapidly deployable industrial buildings. Pre-fabricated and modular components allow for quicker construction times and less waste. New materials, such as self-healing concrete and thermally insulating paints, contribute to the longevity and sustainability of industrial properties, reducing maintenance costs and improving energy efficiency.

Supply Chain Integration

Finally, the integration of supply chain functions is gaining momentum. Facilities are being designed to accommodate manufacturing and distribution processes under one roof, streamlining operations and reducing logistical challenges. This speeds up the time-to-market for products and enhances coordination across different stages of the supply chain.

For a complete list of weekly commercial transactions in Queensland, visit McGees Wrap Up | McGees Property Brisbane

Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute legal, financial, or professional advice. While we strive for accuracy, we make no guarantees regarding the completeness or timeliness of the content. Always seek independent advice before making any financial or real estate decisions. We are not liable for any loss or damages arising from your reliance on the information provided.

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A key responsibility SMSF trustees have every income year is valuing your fund’s assets at ‘market value’.

You should use a qualified independent valuer if:

• the value of a fund asset represents a significant proportion of the fund’s value
• the nature of the asset indicates that the valuation is likely to be complex or difficult.

Property values can be affected by a change in market conditions, or events such as a natural disaster, global pandemic (such as COVID-19) or rising interest rates. Furthermore, if an external valuation has become materially inaccurate, or the value of an asset has changed significantly since it was last valued, you should no longer rely on it. You should obtain a new valuation or use other forms of evidence to support your determination of the asset’s market value.

McGees Property undertakes valuations for clients with SMSF assets and can help you with your valuation requirements.

We know Valuations. We know Queensland.

McGees Property specialises in market value assessments for acquisitions, disposals, financial reporting, SMSF audit and decision making purposes. Should you need any valuation services, please contact Scott Campbell 0403 165 355 or Owen Thorn 0405 415 645.

This Article is for general information only and should not be relied on as advice. You should consider your personal situation and seek advice that is specific to your circumstances before making any decisions based on this information. Liability limited by a scheme approved under Professional Standards Legislation

For a complete list of weekly commercial transactions in Queensland, visit McGees Wrap Up | McGees Property Brisbane

Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute legal, financial, or professional advice. While we strive for accuracy, we make no guarantees regarding the completeness or timeliness of the content. Always seek independent advice before making any financial or real estate decisions. We are not liable for any loss or damages arising from your reliance on the information provided.

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As 2024 unfolds, Brisbane is set to embrace a transformative wave of development projects that promise to reshape its skyline and infuse the city with new energy and opportunities.

In this article, we take a closer look at the top developments.

1. Queen’s Wharf

The Queen’s Wharf development on the River in the CBD is at the forefront of Brisbane’s transformation. It is a mixed-use precinct that combines entertainment, retail, and dining in a single, dynamic location. Spearheaded by the Destination Brisbane Consortium and designed by Cottee Parker, this project is set to become a focal point for locals and tourists, promising a boost in economic activity and cultural vibrancy.

2. Waterfront Brisbane

Also in the CBD, Waterfront Brisbane on Eagle Street, led by Dexus with architectural vision from Fjmt and Arkhefield, is set to revolutionise the city’s commercial landscape. This commercial-led development with integrated retail components will offer state-of-the-art workspaces and leisure areas, setting a new standard for business precincts in Australia.

3. Gabba Heart Development

A joint venture between Belmonde Property Group and Sun Luxe Group, and designed by Cottee Parker, the Gabba Heart Development on Logan Road in Woolloongabba merges residential living with commercial and entertainment spaces. This mixed-use project aims to enhance the liveability and connectivity of the surrounding area, particularly benefiting from its proximity to major sports venues.

4. Station Square

Trenert’s Station Square on Stanley Street in Woolloongabba, designed by DBI, proposes a mixed-use development emphasising accessibility and community engagement. By integrating residential, commercial, and retail elements, it aims to create a bustling hub that caters to the needs of a growing Brisbane population.

5. Residential Developments

CBD projects like 25 Mary Street by KS Property with designs by Koichi Takada, and 204 Alice Street by Meriton, by DBI, signify a shift towards high-quality, architecturally distinguished residential spaces. These developments reflect Brisbane’s commitment to offering diverse housing options that meet the expectations of modern urban dwellers.

6. Retail and Commercial

The Uptown Redevelopment and 360 Queen Street projects in the CBD signal a rejuvenation of Brisbane’s retail and commercial sectors. With innovative designs and strategic locations, these developments are expected to attract leading businesses and retailers, further enhancing the city’s economic landscape.

7. Sustainable Growth

Across all these developments, there’s a shared vision of sustainable growth and architectural excellence. From the Regent Tower’s commercial innovation to the mixed-use allure of 23-27A Manning Street in South Brisbane by Aria Property Group, for example, Brisbane is set on a path that respects its rich heritage while boldly stepping into the future.

References:

1. Destination Brisbane Consortium, Queen’s Wharf Project Overview.
2. Cottee Parker Architects, Queen’s Wharf Design Insights.
3. Dexus Group, Waterfront Brisbane Project Information.
4. Belmonde Property Group, Gabba Heart Development Announcement.
5. DBI Design, Station Square Woolloongabba Development.
6. KS Property Group, 25 Mary Street Project Details.
7. Meriton Group, 204 Alice Street Residential Development.
8. Uptown Development Group, Uptown Redevelopment Plans.
9. 360 Queen Street, Commercial Development Insights.
10. Regent Tower Brisbane, Commercial Development Overview.
11. Aria Property Group, 23-27A Manning Street Project.

For a complete list of weekly commercial transactions in Queensland, visit McGees Wrap Up | McGees Property Brisbane

Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute legal, financial, or professional advice. While we strive for accuracy, we make no guarantees regarding the completeness or timeliness of the content. Always seek independent advice before making any financial or real estate decisions. We are not liable for any loss or damages arising from your reliance on the information provided.

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The Australian industrial property market has experienced an unprecedented surge, propelled by soaring warehouse rents and a flurry of mega developments, driving its value to nearly $300 billion, according to recent research.

Brisbane, in particular, has seen a significant transformation in the industrial landscape, fuelled by the e-commerce boom, which has boosted warehouse rents by 45% since 2021.

Elsewhere in Australia, vacancy rates plummeted to 1% in Sydney and Melbourne, among the lowest globally. As such, prime logistics assets have become increasingly sought-after by global fund managers, reshaping the commercial real estate sector.

The surge in warehouse values has marked a pivotal moment in the industry. Industrial property now comprises 34% of the commercial real estate investment market, trailing closely behind the office market at 35%.

It is expected that investment in the industrial and logistics market will reach $410 billion over the next decade, making it the most profitable commercial asset class. Although the growth rate may slow down due to higher interest rates, the value of industrial properties has been maintained by the steady increase in rental prices, which has compensated for the significant decline seen in the office and retail sectors.

Given the persistent demand for industrial property, Brisbane is well-positioned to play a major role in the sector’s ongoing expansion, attracting significant capital looking for investment opportunities in the city’s thriving industrial market.

Information source: Australian Financial Review

Actions Landlords Should Take:

1. Reassess Rental Pricing:

   • Given the significant increase in warehouse rents, particularly in Brisbane (a 45% rise since 2021), landlords should reassess their current rental pricing. They might consider increasing rents in line with market trends to ensure they are capturing the full value of their properties. However, they should balance this with tenant retention strategies to avoid potential vacancies.

2. Leverage Long-Term Lease Agreements:

   • With the industrial property market expected to continue its growth, albeit at a slower pace due to higher interest rates, landlords should consider securing long-term lease agreements. This will provide stable and predictable income streams, protecting against potential fluctuations in the market.

3. Explore Development Opportunities:

   • The high demand for industrial properties, coupled with low vacancy rates in cities like Brisbane, Sydney and Melbourne, presents an opportunity for landlords to consider new developments or expansions of existing properties. Given the anticipated $410 billion investment in the industrial and logistics market over the next decade, strategic development could yield significant returns.

4. Attract Global Fund Managers:

   • As global fund managers increasingly seek prime logistics assets, landlords should position their properties to attract these investors. This could involve improving the quality of their assets, focusing on sustainability features, or aligning with trends such as e-commerce growth, which has been a critical driver in the sector.

5. Diversify Portfolios:

   • With industrial property now comprising 34% of the commercial real estate investment market and closing in on the office market, landlords with diversified portfolios may consider increasing their exposure to industrial assets. This would allow them to capitalise on this sector’s robust growth and profitability.

Impact on Rent:

• Increased Rents:
  • The surge in demand and low vacancy rates, particularly in prime markets like Sydney, Melbourne, and Brisbane, will likely continue to drive rent increases. Industrial landlords can expect sustained rental growth as businesses, especially those in e-commerce and logistics, compete for limited space.
• Potential Rent Stabilisation:
  • While rents have risen sharply, there may be a gradual stabilisation if interest rates continue to rise, as this could temper some of the aggressive growth in property values. However, the underlying demand is expected to keep rents relatively high.

Impact on the Economy:

• Economic Growth in Key Regions:

  • The transformation of industrial markets, particularly in cities like Brisbane, will contribute to regional economic growth. Increased investments in industrial infrastructure can lead to job creation, improved logistics networks, and greater economic activity.

• Shift in Commercial Real Estate Dynamics:

  • The rising prominence of industrial property, nearing parity with the office market, signifies a shift in the commercial real estate landscape. This shift may lead to a reallocation of capital, with more investors focusing on industrial assets at the expense of other sectors, such as retail and office spaces.

• Inflationary Pressures:

  • The increase in rental prices for industrial properties could contribute to broader inflationary pressures, particularly in the logistics and retail sectors. As businesses face higher costs for warehousing and distribution, these costs could be passed on to consumers.

Landlords in the industrial property sector are in a strong position to benefit from the ongoing boom, particularly in cities like Brisbane. By reassessing rents, securing long-term leases, exploring development opportunities, and positioning their assets to attract global investors, landlords can capitalise on the robust growth and profitability of the industrial market. However, they should also be mindful of potential stabilisation in rents and the broader economic impacts of rising property values and rents.

Unlock the full potential of your industrial property investments with McGees Property. Whether you want to lease or buy, our expert team is here to help you navigate the booming industrial market and secure the best opportunities.

Explore Current Industrial Property Opportunities:

• For Lease: View Industrial Properties for Lease
• For Sale: Explore Industrial Properties for Sale

Contact McGees Property today to discuss your leasing and sales needs. Let us help you take advantage of the thriving industrial property market.

For a complete list of weekly commercial transactions in Queensland, visit McGees Wrap Up | McGees Property Brisbane

Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute legal, financial, or professional advice. While we strive for accuracy, we make no guarantees regarding the completeness or timeliness of the content. Always seek independent advice before making any financial or real estate decisions. We are not liable for any loss or damages arising from your reliance on the information provided.

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Brisbane’s office landscape is transforming as a new generation of workers, primarily Millennials and Gen Z, drive demand for innovative, eco-friendly workplaces prioritising health and wellbeing.

According to recent research, this generational change is reshaping tenant priorities, focusing on reaching net-zero targets and fostering sustainable, wellness-centric environments.

With Brisbane already leading in green ratings, office buildings are evolving to accommodate a variety of amenities, including rooftop gardens, wellness centres, and flexible seating options. The shift towards mixed-mode offices, which offer alternatives to traditional air conditioning, reflects a broader trend towards adaptable workspaces that cater to diverse working styles.

As the workforce demographic evolves, new office developments embrace progressive design principles, such as Mirvac’s Heritage Lanes and Cbus’s 205 North Quay tower, which prioritise sustainability and employee wellbeing. Projects like Dexus’s Waterfront Brisbane are shaping the CBD’s skyline and responding to the evolving workforce needs increasingly driven by Millennials and Gen Z.

With a growing emphasis on enhancing the office experience, landlords are diversifying their offerings to include wellness areas, social media content rooms, and dog-friendly workplaces. This renewed focus on employee experience reflects a broader trend towards experiential workplaces catering to today’s workforce’s evolving demands.

As Queensland experiences significant population growth, fuelled by both natural increase and migration, the future workforce is expected to continue to change. And Brisbane’s office sector presents opportunities for innovative design and sustainable practices to shape the workplaces of tomorrow.

Want to know more? Get in touch with our team to discuss options available in the market today!

Information source: The Australian

For a complete list of weekly commercial transactions in Queensland, visit McGees Wrap Up | McGees Property Brisbane

Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute legal, financial, or professional advice. While we strive for accuracy, we make no guarantees regarding the completeness or timeliness of the content. Always seek independent advice before making any financial or real estate decisions. We are not liable for any loss or damages arising from your reliance on the information provided.

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A vacant office tower in Brisbane, once valued at nearly $160 million and owned by a Saudi-backed fund, is now attracting offers at nearly half its original value after languishing on the market for over 18 months. The tower, located at 41 George Street in Brisbane’s government district, was acquired by the Basil Property Trust for $159 million in 2016. However, despite investing in upgrades to meet government energy requirements, the trust has struggled to find a buyer willing to meet its asking price of $130 million to $140 million. This drop in value reflects the significant disruption the office property sector has experienced due to the COVID-19 pandemic, with changing work patterns and rising interest rates contributing to the decline.

Source: AFR

Image by sandid from Pixabay

For a complete list of weekly commercial transactions in Queensland, visit McGees Wrap Up | McGees Property Brisbane

Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute legal, financial, or professional advice. While we strive for accuracy, we make no guarantees regarding the completeness or timeliness of the content. Always seek independent advice before making any financial or real estate decisions. We are not liable for any loss or damages arising from your reliance on the information provided.

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According to data from the Property Council, Brisbane’s CBD vacancy rate increased from 11.6% to 11.7% in the six months leading up to January 2024. Prime segment vacancies, including Premium and A-grade spaces, stood at 10 per cent and are anticipated to drop to 8% by year-end. However, heightened construction costs have dampened the feasibility of new office developments, extending construction timelines from three to four years. Only a few projects, such as the A-grade office tower at 205 North Quay and the Premium North Tower of Waterfront Brisbane, are slated for completion by 2028, with no new constructions expected until the end of the decade.

Source: Courier Mail

For a complete list of weekly commercial transactions in Queensland, visit McGees Wrap Up | McGees Property Brisbane

Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute legal, financial, or professional advice. While we strive for accuracy, we make no guarantees regarding the completeness or timeliness of the content. Always seek independent advice before making any financial or real estate decisions. We are not liable for any loss or damages arising from your reliance on the information provided.

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Commercial property in Queensland is experiencing significant shifts, with CBD office rents poised to surge alongside Australia Post’s substantial investment of $50 million in a cutting-edge airport parcel facility. The demand for prime office space in CBD towers is intensifying, driving rental rates to new heights, with premium building rents hitting the $1,000/m2 mark and inching closer to $1,100/m2. Brisbane’s CBD vacancy rate, although slightly increasing to 11.7%, is witnessing a migration of tenants from secondary precincts to core locations. However, with construction costs soaring and timelines extending, new office developments are becoming scarce, with no new buildings expected until the end of the decade.

For a complete list of weekly commercial transactions in Queensland, visit McGees Wrap Up | McGees Property Brisbane

Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute legal, financial, or professional advice. While we strive for accuracy, we make no guarantees regarding the completeness or timeliness of the content. Always seek independent advice before making any financial or real estate decisions. We are not liable for any loss or damages arising from your reliance on the information provided.

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Australia Post has unveiled plans to construct a cutting-edge parcel delivery facility at the Brisbane Airport Industrial Park, with an investment exceeding $50 million. Expected to open its doors in early 2026, the StarTrack premium facility aims to revolutionise parcel processing in Queensland, boasting state-of-the-art sorting technology capable of handling up to 176,000 parcels daily. The 33,600m2 facility, set to be 5-Star Green Star accredited, marks the largest industrial project in Brisbane Airport’s history and is strategically positioned to expedite the delivery of time-sensitive parcels across the state.

For a complete list of weekly commercial transactions in Queensland, visit McGees Wrap Up | McGees Property Brisbane

Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute legal, financial, or professional advice. While we strive for accuracy, we make no guarantees regarding the completeness or timeliness of the content. Always seek independent advice before making any financial or real estate decisions. We are not liable for any loss or damages arising from your reliance on the information provided.

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As we get into 2024, the commercial investment market shows signs of rejuvenation, and Brisbane is leading the charge.

Brisbane’s office market has outshone other Australian cities, boasting one of the lowest CBD vacancy rates in the country. According to recent data from the Property Council of Australia, the vacancy rate in Brisbane’s CBD remained almost stable over the six months to January 2024, inching up only slightly from 11.6% to 11.7%.

While national CBD vacancy rates have increased, the fringe vacancy rate bucked the trend by dropping from 14.9% to 13.9%. The Fringe also recorded the highest annual net absorption across all Australian office markets, with over 45,000m2. The CBD followed suit, ranking third in the country with over 16,000m2.

Analysts predict Brisbane’s CBD office market vacancy rate to dip below 10% by mid-2024. Although it may witness a slight rise due to new supply in 2025, it’s expected to fall back below 10% during 2026 and 2027.

The limited supply of new office developments in Brisbane, due to high construction costs and lack of builder availability, coupled with broadening tenant demand across industries, is anticipated to curb any significant increase in vacancy. These strong leasing fundamentals primarily drive investor interest in Brisbane’s office assets. Solid occupancy and growing rents are boosting investors’ confidence in the market.

During 2023, effective rentals in the Brisbane CBD grew by 10%, as incentives slowly retracted and face rents began an upward swing. This positive trend is predicted to continue into 2024, fostering a recovery in the commercial property market. However, leasing fundamentals are not the only aspect attracting investors to Brisbane office assets.

The city is also benefiting from Queensland’s population growth. The state recorded the highest net interstate migration in the country, adding 32,255 people over the previous 12 months, as per the latest ABS figures. As Queensland’s capital, Brisbane stands to benefit from this population growth, with increased demand for services and job growth expected to continue driving demand from occupiers.

For a complete list of weekly commercial transactions in Queensland, visit McGees Wrap Up | McGees Property Brisbane

Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute legal, financial, or professional advice. While we strive for accuracy, we make no guarantees regarding the completeness or timeliness of the content. Always seek independent advice before making any financial or real estate decisions. We are not liable for any loss or damages arising from your reliance on the information provided.

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