In a sign of the continued strength of the industrial market in the Australia Trade Coast precinct, Colliers Queensland has transacted a site in Hemmant for $5.5 million setting a new benchmark building and land rate for a freestanding property in Hemmant.

Colliers Queensland agents James Wilkie and Angus Yule secured the deal on behalf of a private owner occupier at 17 Canberra Street Hemmant selling to a private interstate investor.

Located on a 2,009 sqm site housing a 1,540 sqm warehouse and office and 16 onsite carparks this sale set a record $3,571 per/sqm building rate and $2,737 per/sqm land rate.

Colliers Queensland Industrial Senior Executive James Wilkie said the Australia Trade Coast held a strategic position in close proximity to both the Port of Brisbane and Brisbane Airport, making it a critical hub for the movement of goods to and from Queensland.

“This strategic importance has attracted a growing number of businesses keen on establishing their presence in the precinct, resulting in heightened business activity and expansion, subsequently leading to higher rental growth and higher sales prices,” James Wilkie said.

“The private buyer secured the property in a high demand area, with a short-term leaseback deal from the current tenant.

“This sale represents a yield of 5.2 per cent, which is an above market result, and an increasing yield average in this high demand area.

“As vacancy rates remain low, we anticipate prime rental growth in Brisbane to average 6.4 per cent in 2024, with the Australian Trade Coast expected to outperform this at a growth rate of 7 to 8 per cent,” James Wilkie added.

Colliers Queensland Industrial Executive Angus Yule said this property presented the buyer with a rare opportunity to secure a freestanding investment within this tightly held precinct.

“The buyer was attracted to the premium offering, with the short-term leaseback agreement, as well as the underlying fundamentals of asset,” Angus Yule said.

“The site offered a prime freestaning building with an A grade office and showroom over two levels, ample onsite carparking with container setdown.

“Heightened business activity and expansion in the area has led to higher rental growth with prime industrial rents in the Australia Trade Coast increasing by 22.8 per cent over the past year,” Angus Yule added.