Institutional developers gain momentum in Brisbane industrial market
The continued emergence of institutional developers (such as GPT, Australand, Goodman, Charter Hall, CIP and DEXUS) in Brisbane’s industrial market is creating increased competition to secure occupier commitments and benefiting both tenants and developers alike.
The trend has gained momentum in the last two to three years, with significant national institutional developers such as GPT, Australand, Goodman, Charter Hall & CIP and DEXUS buying up land, and pre-committing or speculatively developing new facilities.
This has caused increased competition within the marketplace marking a positive outcome for tenants.
Beneficial commercial terms in regard to rent, review structure and incentives can help generate cost saving for the occupier groups, particularly when they are the first to commit to a new estate and “kickstart” the development.
It is well known that property costs are usually one of the most significant outgoings for a business.
Increased competition offers more opportunities to the occupier market, and purpose-built facilities translate to cost savings for tenants through relevant commercial terms, improved design and functional operational outcomes.
Matthew Frazer-Ryan, national director of the industrial team in Brisbane, said the trend was evident in recent meetings with various institutional developers and large scale occupiers looking to take advantage of the current market dynamics.
For developers, this means their new estates can progress to delivery from the planning stage, and start the development cycle to create income producing assets.