Brendale continues to enhance its standing as the industrial powerhouse of Brisbane’s northside on the back of a major construction boom and ongoing demand for new facilities.
More than 131,000sqm of new buildings are currently under construction in Brendale and the building boom is set to continue with $11 million in new land sales flowing at Investa Land’s New Base Business Park.
Justin Sherlock, Investa Land Development Manager, said New Base has recently settled or has unconditional contracts on 1.6ha of land for $4.4 million, as well as a further 2.5ha of land under contract for $6.7 million.
He said the total of more than 4ha in new land sales for just over $11 million, spread across seven separate transactions to a range of manufacturing, distribution and logistics businesses, highlights the continued strong demand for industrial land in Brendale.
“The flow of new land sales at New Base reflects a resurgence of enquiry as well as an overall tightening in the availability of existing stock in Brisbane’s northern industrial corridor,” Mr Sherlock said.
“Brendale appeals to a wide range of businesses due to its strategic location and transport links and the ability to maximise efficiencies through the construction of new purpose-built premises.”
Demand is strongest in the sub-5,000sqm category due to limited availability, although a number of 5,000sqm-plus deals are also in the pipeline.
One of these under contract deals is the sale of a 5,175sqm lot to Perth headquartered JWA Oilfield Services, which is expanding its national presence with the establishment of a Queensland facility.
This deal was brokered by Mark Horgan of KnightFrank Strathpine. Mr Horgan could not comment on the sale price, however industry sources advised that a lot of this size could transact for over $290 per sqm.
The current building boom underway at Brendale is anchored by landmark new facilities for retail giants Aldi, Super Retail Group, ARB and Bunnings.
Mr Horgan said the tightening of existing industrial stock levels is fuelling business demand to purchase land to construct purpose-built facilities.
“In particular, supply of existing A Grade industrial buildings is all but non-existent, which will continue to drive new land sales and design and construct opportunities,” Mr Horgan said.
“We are also witnessing an increased demand in container unit movement, hardstand requirements, B-Double access and increased racking heights as both owner-occupiers and tenants search for greater building efficiencies.
“Many of the companies that have chosen to call New Base home, such as BJ Ball, GE Oil & Gas, Cameron, Ewing Industries and Jetmaster also sight one of the main reasons for the decision is that their staff live locally in surrounding suburbs providing easy access and shorter travel times.”
New Base is the largest General Industry zoned industrial park on Brisbane's northside and is only 18km to the Brisbane airport and CBD.
Mr Sherlock said the access to three major arterial roads and the range of land sizes and development options on offer made New Base well suited to a wide variety of businesses.
“New Base is at the heart of Brendale’s emergence as a dynamic new business hub and is now the industrial location of choice in Brisbane's fast-growing northern corridor,” he said.
“It is a unique offering in the Brisbane industrial market, from large land parcels for major national businesses to flexible solutions for smaller to medium companies.”
Mr Sherlock said the offering of ready to build on land for new design and construct premises is a major factor in the appeal of New Base.
He said the efficient management of the supply chain is now a key cost and value driver in the property decision-making of businesses of all sizes.
“Companies are increasingly looking at costs holistically during the property decision-making process to not only maximise short-term savings but also support long-term benefits,” he said.
“Purpose-built facilities deliver much greater building efficiencies, compared to existing older buildings, in terms of customised layout and clearance and racking heights that generate ongoing productivity gains that offset any additional freight costs.”