Industrial market in Townsville remains flat: HTW
Townsville’s industrial market remains flat, according to Herron Todd White’s (HTW) recent report.
The property data firm says that industrial rents are declining.
“The industrial market remains flat with current market activity being largely confined to affordable properties that tick all the right boxes in the sub $1 million range and largely catering to intending owner-occupiers," says the report.
“There are occasional high-end syndication or trust purchases, but only for properties with strong lease profiles. Industrial rents have been on a declining trend and appear to have reached a level that is being accepted by the market," it added.
As a result of softening rents, incentives also appear to have settled to reflect rent-free periods of around three months, according to HTW.
“Broadly speaking, a large portion of mainstream industrial property falls within the $90 to $110 per square metre rental range.
“Within the lower end of this range is typically smaller older light industrial properties in Garbutt with small office components.
“Larger better quality mainstream industrial properties in Garbutt and Bohle generally fall within the mid to higher end range depending on the office size component and hardstand areas.
“Industrial property exhibiting large office components and extensive hardstand areas can reflect rents up to above $140 per square metre.
“Overall rents are flat with the market continuing to exhibit a balanced to oversupply of property available relative to current demand.
“This is likely to see downward pressure remain on rental rates until such time as the rental vacancy situation improves,” the report stated.
An industrial building at 5-7 Madden Street, Aitkenvale (above) has been listed for $950,000. The listing agents are Dan Place and Mark Fitzgerald of Knight Frank.
An industrial property at 719 Ross River Road, Kirwan (below) has been listed for $990,000. The listing agents are John Gribbin and Paul Kotze of John Gribbin Realty.
