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Logan Commercial Property Market Update - June 2016

Situated between Brisbane and the Gold Coast, marks the Logan region as a very convenient and highly sought after commercial precinct. The region is home to a number of local, national and international companies for a multitude of industries and businesses with the commercial property market comprising predominantly of industrial (80%) and a small portion of office (10%) and retail (10%) in key suburbs such as Slacks Creek, Loganholme, Meadowbrook, Kingston, Woodridge, Underwood, Browns Plains, Hillcrest & Berrinba.

 

Our Logan area specialists Graeme Watts, Andrew Honeybone and Brent Robson are seeing the transactions that are occurring in the area being made up of approx. 70% leases and 30% sales (based on monthly transactions in the area).

 

With enquiry levels on the rise in the past few months our local professionals are predicting a growth in sales.  “With record low interest rates resulting in more tenants being in a position to become owner occupiers we are starting to see a shift in enquiry towards buyers” said Sales & Leasing Executive Graeme Watts.

 

“With these interest rates expected to stay low we expect these enquiries to result in rising sales activity with both owner occupiers and investors” Graeme added.

 

Andrew Honeybone said “due to the nature of the area, a large portion of the stock currently on the market is under 600m2, with very few buildings available in the 750m2 – 1,500m2 range”. 

 

“Buildings in the larger size bracket are becoming increasingly more difficult to find, therefore when they do come onto the market the initial enquiry level is great and in many instances they don’t stay on market for long” said Andrew.

 

When asked about current market rentals, Brent Robson said “we are seeing A-Grade industrial buildings lease from $105-$115/m2 plus Outgoings depending heavily on features such as quality and location”.  Brent added, “B-Grade stock sits in the $85-$100/m2 plus Outgoings”.

 

A few note-worthy transactions in the area are listed below:

 

77 Parramatta Road, Underwood
Leased to SRS
Commenced February 2016 on a 5 year lease.
SRS will develop the site into a state of the art rapid centre for a major automotive insurance company. This was the largest warehouse lease in recent times for the area.

 

21 Moss Street, Slacks Creek
Leased to Skamper Kampers
Commenced March 2016 on a 3 year lease.
Skamper Kampers are originally from Sydney and saw a great opportunity to service their growing Queensland base.

 

77 Burchill Street, Loganholme
Leased to Krispy Kreme
Commenced early 2016 on a 5 year lease.
Krispy Kreme are undergoing a significant fit-out including two new imported production lines for their new manufacturing facility.

 

From a vacant land perspective in the Logan region, Graeme said “the majority of land available is in the Berrinba/Crestmead areas. There is a combination of serviced and Greenfield parcels over 1 Hectare (Ha) with some new small lot sub-divisions starting to become available”.  In addition Graeme said “Meadowbrook also has a substantial amount of fully service 1 Ha plus sites”. In more built up areas such as Underwood and Slacks Creek there is minimal land available.

 

In summary, Graeme, Andrew and Brent all agree that there is a shift in the market at present with many tenants now looking to own their own premises.  For the remainder of 2016 we see positive signs that enquiry levels for people looking for property (whether to buy or lease) will continue to rise.  With this in mind tenants and buyers in the market place will need to act fast to secure their preferred property option in some instances.

 

We encourage Sellers / Landlords to ensure their property is presented to the market in the best possible light to maximise enquiry levels.  If you would like to discuss how to best present your property to the market please contact any of our professionals below:

 

Graeme Watts                     
0418 180 902      
[email protected]

Andrew Honeybone           
0400 572 917      
[email protected]

Brent Robson                     
0423 686 606      
[email protected]

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