Sunshine Coast sees significant industrial rental growth

The Sunshine Coast industrial market has experienced significant rental growth across the board over the past three years, particularly in properties over 700sqm. 

 
CBRE data shows industrial rents on the Sunshine Coast have surged by 62% since January 2021. This upward trajectory shows no signs of slowing down, with CBRE anticipating continued growth in rental rates until the development or availability of new, larger facilities.

CBRE’s Matt Marenko and Jack McCormack, on behalf of the landords', recently negotiated a seven-year lease deal at a base rent of $165 per sqm for a 2,191sqm manufacturing facility to Vulcan Steel.

“When CBRE was approached with the Vulcan Steel requirement, any options above 1,000sqms simply didn’t exist. The only feasible option was to look at a facility which would be built to their exact specifications and would incorporate a gantry crane. The new facility will be constructed for the tenant in Corbould Park, south of Caloundra with occupation expected in Q4 of this year,” Mr Marenko said.

Mr McCormack added, “Many local businesses continue to experience immense growth and the demand for larger scale buildings is outstripping supply. The growth reflects a robust and thriving local economy on the Sunshine Coast. Population growth, expanding businesses and increased manufacturing and logistics activities are driving the demand for larger industrial space than has previously been considered in this market.”