Brisbane industrial market sees strong investment confidence return: HTW Industrial

Brisbane industrial market sees strong investment confidence return: HTW Industrial
Brisbane industrial market sees strong investment confidence return: HTW Industrial

There is strong investment demand at present in the Brisbane industrial market, according to the latest report from Herron Todd White.

The valuation firm found, private investors generally seek well leased, modern assets in prime locations (close to major transport routes and infrastructure) along with long WALEs and certain terms.

They report said, "we expect to see this stronger sales activity continue through the remainder of 2019 due to the low interest rate environment, however we do note that investors are holding on to well leased, quality assets due to the lower risk profile these properties offer."

The first half of 2019 saw the Brisbane industrial market continue to demonstrate the cautiousness shown in 2018.

Prime and secondary precincts were increasingly tightly held with limited properties offered to the market, a major factor in the decline in sales volumes.

Mid 2019 post federal election saw confidence return to sellers and subsequently an increase in sales volumes.

The HTW valuers said, "notably, institutional investors are able to acquire larger assets on subsix per cent yields."

"Other prime investment yields continue to tighten, generally ranging from six to seven per cent."

"On the back of this, secondary yields have also seen some firming with recent sales showing a range of seven to eight per cent."

"Despite the flourish of activity post-election, we expect sales volumes to remain strong for the remainder of 2019," they concluded.

Tags: 
Brisbane Industrial Market

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