Moreton Bay Region
The Moreton Bay region is the third largest local authority in Australia and encompasses the former Caboolture and Pine Rivers Shires as well as Redcliffe City. The 2,037 square kilometre region is one of Queensland’s most progressive and fastest growing regions. New link roads and major infrastructure upgrades have shortened the gap between the Brisbane CBD and Moreton Bay Region and the continued trend of business decentralization is seeing more and more relocating to the area. The precinct’s close proximity to the Brisbane Airport, Port and the Bruce Highway provides considerable opportunities for investors and business owners wanting to start up in a profitable environment.
Overall, there is a consistent level of enquiry throughout the region and with large national and multinational groups committing to the area, a flow on effect of other tenants and buyers alike is sure to follow over the course of the next few years. Such groups that have recently committed to new sites in the area include Masters, Bunnings, Costco, Super Retail Group, Aldi Distribution Centre, Norris Motor Group, Ironman 4X4, TJM Brendale, Road and McDonald Jones.
While the market is currently dominated by owner occupiers, there is a growing trend in the demand from SMSF and Private Investor groups who have been increasingly active over recent months. The instability in the share market and decreased returns offered by term deposit have both assisted to increase the interest towards bricks and mortar. A strong appetite for prime investments in the outer-north is particularly notable with a high attraction to the areas growth and infrastructure currently underway or planned within the area. Recent investment sales achieved by Raine & Horne Commercial range between 7.8% - 8.75%. This range applies to prime grade investment properties with long term lease’s and strong covenant’s. That said, properties which have vacancy or short term lease expiries face overlooking or discounting from the market.
Rates in this precinct vary due to the large area the Moreton Bay region covers. In Redcliffe/Kippa-Ring, lease rates are typically range from $200 to $300/sqm for prime grade commercial buildings and as low as 150-$200’s/sqm for secondary stock.
The industrial area of Brendale continues to be in demand with high levels of enquiry for smaller industrial units up to 300sqm as well as larger freestanding opportunities both for sale and lease. Leasing rates are quite varied depending on construction type and age with industrial units generally achieving between $85 and $125/sqm. The number of sales transactions has certainly increased over the past twelve months and as a result available options on the market at present are fairly limited. A consistent increase in enquiry indicates buyer confidence is returning to the Brendale market with more and more long standing tenants wanting to purchase their own industrial/commercial properties. New developments and land estates continue to press forward in the area, offering investors and owner occupiers alike the opportunity to choose from a multitude of new stock.
The retail, bulky goods and office areas of Strathpine & Lawnton continue to remain fairly tightly held with vacancy remaining relatively unchanged over the past few years. Rates in the area have seen some marginal softening due to the flow on effect from reduced rates in more prominent retailing areas closer to town
The industrial areas of Narangba/Deception has seen a modest improvement over the first half of the 2013 calendar year with strong demand and improved vacancy levels being felt across the board. The demand in the market has primarily been for prime grade vacant strata units between 200-300sqm with office space and freestanding industrial buildings between 1,000sqm – 3,000qm with low site coverage. On average prime grade (modern tilt panel) rents currently range between $100/sqm - $120/sqm pa and secondary grade (older, metal clad) net rents on average range between $80/sqm - $90/sqm pa. Owner-occupier interest has also been consistence over first half of the year with buyers looking to take full advantage of great buying conditions. Interest for property over a $1million has been the most active while owner occupier under $1million have been somewhat subdued.
Land sales in the major industrial estates have been generating good interest levels but despite this, the translation to sales has been comparably low. Recent sales in these estates range between $230/sqm - $310/sqm while rates for privately owned serviced land have been forced down to compete being offered as low as $170/sqm.
Construction has begun on the Moreton Bay Rail link with the aim of connecting one of the country’s fastest growing regions. The $1.15 billion project will deliver a 12.6km dual-track rail line between Petrie and Kippa-Ring with six new rail stations being delivered as part of the project at Kallangur, Murrumba Downs, Mango Hill, Kinsellas Road, Rothwell and Kippa-Ring. The project will deliver a more reliable transport network, increase connections between key activity centres within the region and reduce traffic congestion. With construction now underway, the new rail line is estimated to be completed toward the end of 2016.
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