Low interest rates fuelling industrial deals in Brisbane

Low interest rates fuelling industrial deals in Brisbane
Low interest rates fuelling industrial deals in Brisbane

Owner occupiers are capitalising on favourable lending conditions, with a flurry of industrial transactions in Brisbane.

The most recent was the sale of a light industrial site at 18 Raynham Street in Salisbury at auction for $2.1 million.

Western Australian-based Ampac Developments Pty Ltd snapped up the 4,047 sqm warehouse property.

Selling agent CBRE’s Sam Higgins, who brokered the deal along with Jack Pershouse, said the low interest rate environment was fuelling investor appetites.

“Auction bidders are comparing the rent they are paying with the loan repayments - and with fixed interest loans at under 6%, many companies are able to buy a building for 20% less than what they paying in rent costs,” Higgins said.

“With interest rates at 50-year lows, we are seeing strong demand for vacant buildings in the established suburbs of Rocklea, Acacia Ridge and Salisbury.”

Meanwhile, an industrial warehouse property at 29 Meadows Street in Coopers Plain also recently sold for $1.5 million at auction.

Located on a 4,022 sqm site, the property comprises a 1,300 sqm building and a hardstand area of nearly 2,500 sqm.

The purchaser was companies associated with the Hume family.

Pershouse said the market was gaining momentum, with a steady pipeline of transactions on the horizon.

“We are continuing to see an upturn in sales in the $1.5 million - $3 million sector of the market, while leasing transactions have also improved, particularly in the $80,000 - $130,000 net per annum range,” Pershouse added.

“Many investors are favouring industrial over residential property as the yields are net of 6% or better compared with residential returns which have been lower.”

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Brisbane Industrial Market

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