The Historic Sector includes some of the oldest industrial suburbs in Brisbane such as Northgate and Geebung. This precinct is proving to be a solid performer that continues to perform well. The value of the area has strengthened based on its close proximity to the city and easy access to arterial roads and public transport.
This precinct is home to many businesses that have experienced tremendous growth and success over the years. An example is the iconic Australian company, Golden Circle, which began business in 1947 in Northgate on 16.5 hectares of land. Now, more than 60 years later, the business is the largest fruit cannery in Australia and produces over 400 products.
In general, there is a shortage of vacancies in the precinct due to high demand and this has resulted in a slight increase in rental rates. Rentals for older style metal clad buildings start at $75 - $125/m² for newer tilt slab industrial. Sale rates for smaller industrial units vary from $1,750 - $2,500/m². An example of a larger industrial sale is 54 Armada Place, Banyo which totalled 2,087m² and sold for $3,250,000 which equates to $1,557/m². The majority of transactions have involved larger properties. However there has also been an increase of smaller industrial units being taken off the market with owners wanting to begin new businesses.
Enquiry levels have been strong with the market primarily led by owner occupiers. In the past six months there has been a lot of absorption, therefore properties that have been sitting on the market in the last 12 months have either been sold or leased.
Due to the high number of manufacturing and distribution companies in the area, major road developments further increase the overall attractiveness of the precinct. The Airport Roundabout Upgrade is almost complete and will ease pressure and traffic congestion on the Nudgee Road and East-West Arterial Road intersection. The upgrade has also made Hendra and surrounding areas more accessible by increasing access to and from the precinct.
The Airport tunnel link is still under construction and once completed in mid 2012 will reduce traffic congestion in the inner northern suburbs and the areas surrounding the airport. The tunnel will enhance the area’s liveability and provide opportunities for better land use in the inner northern suburbs currently affected by traffic congestion. This will improve business conditions in general from an access, transportation perspective. These developments will ensure the continued success of Brisbane’s historic industrial area.
To find out more information on leasing and sale rates in the Brisbane Commercial market, download our Commercial Insight Magazine or contact our local experts on the details below.