With approvals secured and construction in progress, a private Brisbane developer is speculatively building an 8,600sqm last-mile facility in the infill location of Morningside, capitalizing on the sustained low vacancy rates in Tradecoast.

Having acquired the 1.49ha site from Lend Lease earlier this year, the developer has successfully obtained facility approval, completed the tendering process, and commenced site works. Anticipated occupancy is slated for the last quarter of 2024.

The marketing of this development is led by CG Property Director’s Michael Callow and Jonathon Burrows and Modus Property Partners David Gibson and Nick Bandiera.

Mr. Callow emphasized that "the development will contribute to much-needed supply, particularly in Tradecoast, where a shortage of available land is restricting development options and impacting supply."

He added, "We've observed an average rental growth of 30-35% across Brisbane in 2023, and in Tradecoast, instances have shown growth rates of 40-50%.

While demand may have slightly eased from 2021/2022 levels, the transactions in 2023 reflected robust outcomes. Mr. Gibson of Modus suggested that the easing of demand likely mirrors a scarcity of opportunities for tenants to secure space in 2023, given construction delays that were creating a supply shortage. 

"Nevertheless, there is still strong demand for new space as tenants seek to upgrade their facilities and enhance efficiency through consolidations and modern improvements," he added.

Mr. Callow highlighted key transactions, such as Charter Hall’s pre-commitment at 57 Culya Street, Pinkenba, securing over 46,000sqm for a government entity at $176 per sqm, as evidence of strong rental growth.

"We are aware of two other major transactions in Tradecoast involving 30,000sqm-plus buildings at or above the same level," he noted.

"Considering rental growth in renewals, we anticipate further rent growth in 2024," he concluded.

Interested parties should contact CG Property Group or Modus Property for further information. 

Related CG Property Group Reading:

Charter Hall has pre-leased a 45,259sqm Tradecoast Logistics Facility negotiated by CG Property 

Major Brisbane industrial facility for lease - Knight Frank & CG Property

Substantial land holding with DA for sale in Brisbane’s South - CG Property & Savills

Super Prime Industrial Asset Trades from Fund to Private in off-market transaction for $55,626,625 by CG Property Group

National Training Provider continues to call Metroplex Home - CG Property Group

Mapletree delivering much needed logistics supply to Southeast Queensland