Industrial warehouse demand increases in North Brisbane

A flurry of leasing activity has driven the industrial & logistics vacancy rate in Brisbane’s north to sub 1%, with a limited supply pipeline tipped to drive further rental growth in 2023 according to a new CBRE market analysis. 

CBRE’s Industrial & Logistics leasing team has secured tenancies for six industrial warehouses in the Moreton Bay Regional Council in recent months, the majority involving growing manufacturers. 

In the largest of the recent deals, concrete manufacturing company Prime Concrete has secured a 6,145sqm freestanding warehouse on a 10 year lease at 140 Potassium Street, Narangba. 

Industrial equipment supplier Petro Industrial has meanwhile taken a  five-year lease over a nearby 3,100sqm tilt panel warehouse building at 14 Business Drive

In a third Narangba deal, vehicle manufacturer Bullbars has occupied 2,331sqm of a warehouse complex at 16-22 Magnesium Street under a five-year lease agreement.

A range of recent deals have also been struck in Brendale with woodwork manufacturer Northside Woodwork Company has occupied a 2,400sqm metal-clad refurbished warehouse at 10-14 Pinacle Street.

Metal manufacturing company Nepan Building and Infrastructure has occupied a new 2,201sqm tilt panel warehouse at 14 Griffin Crescent while bakeware distributors Loyal Bakeware have leased a 1,577sqm brand new tilt panel warehouse at 44 Griffin Crescent.

The leases were struck on terms ranging from 5 to 10 years at rentals of between 120 and 140.

“The Narangba and Brendale industrial precincts are highly sought after and ideally positioned for corporations requiring easy north and south access,” CBRE’s Hugh Adnam said.

“Record low vacancy rates and ongoing tenant demand are driving rentals upward and there is currently more demand than supply in the market.” 

CBRE’s Dillon Murphy added, “There is limited supply planned for 2023 which will put further pressure on occupiers.”