Brisbane Southside Blog


State of Play in the Large Industrial Market - 5,000sqm Plus

During 2016 in the Southern Brisbane industrial precincts the dominant tenant leasing activity in the 5,000sqm plus warehouses has focused on design construct or speculative buildings. Notable leases that have been completed include:


  • Owens IIIinois - 30,000m²
  • Beaumont Tiles - 13,164m²
  • TNT Express - 27,775m²
  • Avery Denison - 5,600m²
  • Japan Food Corporation- 5,650m²


The market is seeing a flight to quality with new buildings offering high internal clearances, ESFR sprinkling systems with modern corporate presentation.


The institutional developers are aggressively competing for tenants with face rents of $110/m² to $115/m² but effective rents after incentives being sub $100/m² for the new buildings.


On the south side of Brisbane there is presently just under 500,000m² of vacancy in the 5,000m² plus industrial size range. This is made up of 80% being secondary and 20% new speculative buildings. While this is around the same figure as 2015 it is 30% above the long term average.


The secondary properties vacated by tenants moving to the new buildings are proving difficult lease. Landlords of these properties are listing the properties around $95/m² to $105/m².


So while effective rents for new buildings are equating to the rentals for secondary stock, we will continue to see the flight to quality. If secondary buildings continue to be stubborn to lease we will no doubt see downward pressure on rents and an increase in incentives that the market is now expecting.          


Produced by:


David Seale

Associate Director

Raine & Horne Commercial Brisbane Southside & Bayside

0418 768 087

[email protected]

< Back

Why Raine & Horne Commercial?

Our full-service commercial real estate network can provide in-depth knowledge of local and regional property markets, with insight and understanding that comes from being a part of a long-established national and international property group. Committed to personalised service and achieving unsurpassed results, our clients continue to benefit from our network strength, which allows substantial cross-flow of international referral, advice and investment.

The Raine & Horne Commercial network is comprised of 100% owner-managed offices and includes numerous industry leaders and award winners. We employ agents who are empowered, encouraged to share and who maintain first rate communication to deliver the best possible outcome with every transaction. We pride ourselves on staying abreast of local and national trends and developments in the property industry, resulting in consistently cutting-edge services and holistic solutions for our clients.

Our industry experts embody and respect the family-oriented values synonymous with the Raine & Horne Commercial brand, allowing us to provide a complete range of professional services for all aspects of commercial, industrial, retail sales, leasing and specialist properties.