Record low interest rates to drive owner-occupancy
Industrial yields make finance too attractive for end-users
This week’s historic rate cut by the Reserve Bank of Australia will further drive owner-occupant activity in the Brisbane-Gold Coast industrial corridor, according to LJ Hooker Commercial.
The move to the 0.75 cash rate will further drive activity in industrial, which had been responsible for ‘pretty strong enquiry’ levels, said Managing Director of LJ Hooker Commercial Brisbane
, Ben Armstrong
The comparative affordability of the Yatala Enterprise Area precinct would put it on the radar of business operators, said Mr Armstrong.
“Yields are around 6% and you can now borrow in the low 3% range so that’s going to continue to fan interest from industrial owner-occupants,” he said.
“There’s been a lot of interest in sub 5000sqm buildings in Yatala and I think they’ll continue to be the hot asset into the end of the year, especially if there’s further (RBA) cuts.
“Yatala’s proximity to the Motorway, the Logan Enhancement Project and the possible future Coomera Connector makes the area a really viable region for the spectrum of operators, including last-mile logistics operators capitalising on health population growth.”
Mr Armstrong said Berrinba, which had attracted speculative and pre-committed building activity in the last 12 months, was also a ‘sleeping giant’ that would attract enquiry on the back of the third interest rate cut since June.
According to LJ Hooker Commercial’s Industrial Market Monitor
, prime capital industrial values in Yatala were around $1720psm, making it the most affordable precinct in the Brisbane-Gold Coast corridor. The most expensive precinct was the TradeCoast was $2,170psm.
Supporting cuts to the official cash rate, Queensland is tipped to outpace other states in State Final Demand over the next three years. Major infrastructure projects including Queens Wharf, Cross-River Rail and the Brisbane Metro are set to underpin the economy.
For media information:
PR & Communications Consultant
LJ Hooker Commercial
M: 0427 916 020