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Brisbane’s industrial vacancy rates are the lowest in six years

Brisbane’s industrial vacancy rates are the lowest in six years

Brisbane’s industrial sector has recorded its lowest vacancy rates in years, as market conditions continue to strengthen across the city.

This is boosting rents, albeit at a modest rate, as the significant supply constraints that began last year are starting to impact the sector.

Average prime net face rents in Brisbane were $113 per square metre, while secondary rents were $93 per square metre in January, according to Knight Frank.

The industrial vacancy rate had also fallen for the past five consecutive quarters to a six-year low.

“Vacancy is trending downwards, and tenant demand is being boosted by improving economic conditions, population growth, major infrastructure projects and a mining resurgence,” Knight Frank’s partner and joint head of industrial in Queensland Mark Clifford said.

In the past year alone vacant industrial space in Brisbane has reduced by 18 per cent, or about 89,000 square metres, according to Knight Frank.

Mr Clifford said the first quarter of this year was dominated by smaller tenants leasing space of less than 8500 square metres.

Demand from larger tenants was expected to strengthen in the second half of this year, he said, however, major users continued to be active.

“Buildings of scale have accelerated land take-up, with the pre-commitment of Coles to a 66,000-square-metre distribution facility at Redbank being the latest example of major users’ upscaling their distribution premises in Brisbane, enabling the adoption of cutting-edge technology,” Mr Clifford said.

Major tenants were searching for efficiencies in their delivery chain, which was fuelling demand for new-generation automated facilities, as well as those with environmentally sustainable features.

“Industrial demand is being influenced by logistics operators as omni-channel retailing becomes entrenched in the supply chain,” he said.

“Delivering accurately, with complete trackability, quickly and on a cost-effective basis is now the key issue for many logistics operators.

“The efficiency of location to the local road network as well as long-haul travel are required, as well as a large flexible building shell with green ratings, which is often now demanded by the brand of product being stored for their own environmental reporting and standards.”

Available speculative space in Brisbane has fallen to 49,398 square metres, the lowest level in four years, however, this would likely trigger new construction this year, Mr Clifford said.

The Trade Coast is continuing to record the highest take up of any industrial precinct in Brisbane over the first quarter of 2019.

Colliers International research has found that available industrial land ready to develop in Brisbane is incredibly tight, with less than 3.5 years of supply remaining.

This had, in turn, led to reinvestment in older-style secondary assets in core locations, as tenants weigh up the benefits of being centrally located versus building new facilities in outer Brisbane regions.

Colliers International industrial national director Anthony White said a prime example was Lincoln Sentry, a Dulux subsidiary, choosing to remain close to its existing facility at Coopers Plains when it came time to relocate.

“There were options within 20 radial kilometres that on paper may have meant some rental savings, [but] came at a greater cost to both transport efficiencies and staff retention,” Mr White said.

“The facility at 5/243 Bradman Street in Acacia Ridge had great potential but is 20 years old and needed refurbishment.

“We negotiated with the private owner and their advisors, King and Co Property, to reinvest about $4 million into their facility and they were in turn rewarded with Lincoln Sentry taking up a 10-year lease before the current lease had even expired.”

The trend towards online retailing had resulted in institutions such as Stockland, Charter Hall, Frasers and Goodman speculatively constructing ultra high-grade industrial warehouses targeting the next wave of occupier expansion.

Colliers International industrial national director Matthew Frazer-Ryan said it seemed “bigger is better” as product volume and diversity of warehouse stock drove demand for more height, better and more efficient fire systems, and larger dock faces.

“CTI Logistics have taken full advantage of this trend, leasing approximately 10,000 square metres on a five-year term within Frasers Property’s South West 1 Industrial Estate in Berrinba [Logan],” he said.

“The key to this property is that it offered a ‘super awning’, which is a 30-metre-wide fully undercover loading area.

“No existing building in the market could provide that.”

Mr White said the trend towards new build and refurbished opportunities was also evident in the mid-tier Brisbane industrial market, which was experiencing a flight to quality among corporates looking to house distribution functions.

“Increasingly, corporate tenants looking for 2000 to 5000 square metres will not negotiate on building quality, with staff retention and environmental considerations being at the forefront of decision making,” he said.

“A recent example of this is Pentair Australia leasing 3500 square metres from Centennial Property Group in Murrarie following a substantial estate refurbishment including fire upgrades, new landscaping, carparking upgrades and additional staff amenities.”

Centennial Industrial and Logistics executive director Paul Ford said the deal had fit perfectly with their investment strategy.

“When we bought the property, it was 100 per cent vacant and we knew we had to invest further to attract the right users,” Mr Ford said.

“Corporates of this calibre want their staff to be housed in modern, attractive and safe buildings.”

 

 

Source: www.commercialrealestate.com.au

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Waterfront wonder: see why this rare Pelican palace is going to be irresistible to lifestyle lovers

Waterfront wonder, rare Pelican palace

A rare, palatial waterfront beauty is about to become someone’s new dream home on the Sunshine Coast and smash the sale price record for its coastal suburb.

The private oasis that is 43 Pelican Waters Boulevard, Pelican Waters, commands attention among other resplendent homes in the coveted area.

The five-bedroom, three-bathroom property sits on the largest waterfront allotment in Pelican Waters at 2492m2.

It has everything grand property wishes are made of, ticking all the boxes for desirable coastal living – space, privacy, convenience and location – with the added bonuses of being north-facing, with absolute water frontage on the widest canal.

Pelican palace in Pelican Waters, The “big picture”

The “big picture” of the property’s position on the canal.

Adams & Jones is marketing the property in an Expressions of Interest campaign that closes at 5pm on June 7.

While agent Karen Jones did not wish to pre-empt the success of the campaign, she expects the final sale price to be the talk of the town.

“We certainly expect it to be a record sale for Pelican Waters, deservedly so,” she said.

“So far, the response has been very positive.

“I am organising private inspections by appointment only for this home.

“Given the size of the land and all the extras, some of the private inspections I have had so far have taken an hour-and-a-half.”

Lifestyle and luxury are taken to the next level. This is more like your own tropical resort complete with enviable recreation facilities.

Beautiful Pelican palace in Pelican Waters

The colossal in-ground infinity pool is joined by a full-size flood-lit tennis court and mini putting green.

This boat owner’s paradise also has about a 49m frontage with private pontoon to the ocean-access canal to glide around pristine Pumicestone Passage or cruise out into the deep blue.

The water-fun possibilities are endless for those with SUPs, jet skis, kayaks or surfboards.

And there’s room for four cars plus a motorhome, or boats and trailers.

Unwind beneath the canopy of the trees, sit back and take in the breathtaking water views across the canal, dine in a romantic setting at the water’s edge or reconnect with loved ones in the large outdoor living zone complete with weatherproof roofing.

But the elegantly remodelled and beautifully styled, two-storey residence also offers grandly proportioned interiors behind the gated entrance and long and winding walkway to the front portico.

Pelican palace in Pelican Waters

What lies behind the front gates.

A statement chandelier over the central table is an eye-catching addition to the entertainer’s kitchen that also boasts stunning engineered stone, integrated appliances and expansive storage solutions, including a separate bar area.

While all five bedrooms are well-proportioned, beautifully appointed and offer French doors to private balconies with sparkling water views or a private outlook over the estate, the master retreat is a stand-out in comfort.

And its luxurious ensuite has a free-standing bath to soothe weary souls that looks out to the waterfront landscape.

French Oak flooring, luxe finishes and inviting spaces to relax and entertain help define the home’s immediate sense of warmth and comfort.

The separate air-conditioned office with independent access is ideal for a home business, with its own shady outdoor lounging area and meeting table.

Other features include: ducted air-conditioning, vacuum system, security and intercom.

“For me, I love the space and privacy provided by all the established trees and gardens,” Ms Jones said.

“It really makes it feel like an oasis on the water.

“Although you are walking distance to Golden Beach and Pelican Waters shopping centre and the coming marina, it doesn’t feel like you are in the suburbs.

“It is very rare to have 2492m2 of north-facing waterfront. That is very hard to find anywhere on the Sunshine Coast.

“The home was designed by Trevor Reitsma and the current owners have done a beautiful renovation, keeping true to the style and grandeur of the home but giving it a lovely relaxed, coastal vibe.”

Ms Jones said the current owners previously were living in the hinterland on more than 40ha (100 acres), and while they had “loved their time” on the largest waterfront block in Pelican Waters, they wanted to return to acreage living.

In their time by the water, they had seen the potential of the “faded beauty” they had purchased and completely remodelled and renovated the property to their own grand designs with luxury finishes.

With the property’s immaculate presentation, interest had been strong from prospective buyers.

“We have had an ex-pat with a family very interested, as well as a couple returning from working in the US for 20 years, families from Brisbane and families from other parts of the Sunshine Coast,” Ms Jones said.

“The size of the home and the rare block size have both been very important aspects of the buyers’ interest so far.

“It will be very interesting to see who the lucky buyers will be.”

 

 

Article source: www.sunshinecoastnews.com.au

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Market Place

For sale: Inside Australia’s version of The Great Gatsby mansion

The Australia’s version of The Great Gatsby mansion is on the market in Queensland

In the luxury stratosphere of real estate, privacy is even more valuable than glittering views, blue-ribbon street addresses and the imported flourishes that crown every surface.

And so it is with Australia’s version of The Great Gatsby mansion.

This unique estate, on the market in Queensland, has a cinematic quality.

Here, the water fountains in the vast grounds are controlled by Bluetooth. Flick a switch for instant cocktail-hour ambiance.

The Australia’s version of The Great Gatsby mansion is in Queensland

The exclusive estate in Robertson, Queensland. Photo: Domain

In the suburb of Robertson, with intentionally little else to pinpoint its location, is this an estate of epic scale and glamour.

The listing does not mention the street address, or provide a floorplan, and there are only eleven photographs (none of the living zones, and most of the exterior) which adds to the intrigue and sense of exclusivity.

The chandeliers are bespoke, the tennis court is “championship” size and the pool house has a kitchen for parties, “his and her bathrooms” and three options for a dip – a 25-metre pool with three lanes, a spa and a cold plunge pool.

The Great Gatsby mansion in Australia,  “pool house”

The “pool house” in Robertson. Photo: Domain

Paths and driveways curl around impeccable, verdant gardens with razor edges, reminiscent of Jay Gatsby’s estate in Baz Lurhhman’s 2013 movie starring Leonardo DiCaprio. The exterior shots for the film were of St Patrick’s Seminary in Manly, Sydney.

The Robertson estate is on the books of Place Estate Agents’ Patrick McKinnon, inviting expressions of interest.

No price guide has been given.

Mr McKinnon told Nine the level of seclusion and privacy attached to the home – which he dubbed “Brisbane’s best-kept secret” – is what held “huge” appeal for prospective buyers in this level of the market.

 

 

Article source:www.domain.com.au

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Market Place

Boomers a ‘Force of Change’ in Retirement Property Market

Property Market

As teenagers they invented pop culture and now—much older, collectively wealthier and arguably wiser—they are defining a new age group and re-inventing retirement living.

Millenials may have surpassed them in numbers but baby boomers are still having significant influence on world economies and trends—not least in the property market.

“The baby boomers are coming through and have become a force for change in the seniors’ market,” said Cameron Kirby, managing director of Kirby Consulting Group, a retirement and aged care specialist.

“The more progressive operators are definitely getting their ducks in a line.

“And there’s a lot of developers interested in dipping their toes in the market for the first time, some of them with more than 30 years’ experience in the development industry, because they can see there is huge opportunity.

“[But] many developers that want to enter into this space are probably a bit reticent because they’re worried about the complexity of it, they’re worried about the unknowns.

“The opportunities, however, far outweigh any of their concerns.

“And if you’re offering what the market wants, you’re going to be successful.”

Kirby will be a speaker at The Urban Developer Developing For An Ageing Demographic vSummit on April 28.

“The sector is continuously changing,” he said.

“You’ve got land lease communities and over-55 developments that have been moving into the traditional retirement village space.

“And, at the moment, there’s a lot of talk about integrated care in retirement living with a greater weighting on having more retirement villages and less aged care.”

Last year, a survey by benchmarking firm StewartBrown showed 58 per cent of aged care homes were operating at a loss, up from 55 per cent the previous financial year, and 32 per cent made a cash loss.

“Aged care has got some major challenges … but in the meantime there’s also the baby boomers coming through,” Kirby said.

“What I’ve seen over the last 10 years is a bit of a slide where low-care people that used to go into aged care are more likely to go into retirement villages and, equally, people that used to go into more traditional retirement villages are now probably more interested in moving into land lease communities and over-55s concepts.

“Land lease communities are growing very fast and are hugely attractive, there’s no doubt about that … but retirement villages have upped the ante enormously as well, they tend to offer much more wellness and are moving more towards the care side of things.

“Certainly, operators who are offering care in retirement villages are going from strength to strength.

“There’s an increasing amount of quality retirement villages with hotel and resort-style living and state-of-the-art amenities coming online. Pools, gyms, spas, saunas, cinemas, you name it they’ve got it. 

“But those retirement living operators that have a full continuum of care solution that’s what the market is demanding … [the boomers] know they’re going to need some support down the line so they’re planning for their future.

“It really doesn’t matter, however, whether you’re doing aged care, retirement, over-55s or land lease community … because demand is outstripping supply. There is a market for all of those and they attract very different types of buyers.”

Kirby said given Australia’s ageing demographic, the seniors and retirement market was a “much more defensive proposition” for developers.

“Just as healthcare is a defensive stock on the stock market, I think seniors living is a much more defensive play in the property sector,” he said.

“It tends to be more needs driven than what a straight-out residential property play would be.

“And so, I think if we are going to be headed towards a softer property market this is an area that can really shine because seniors will still have the wealth and will still want to move and look at downsizing opportunities.”

 

Article Source: www.theurbandeveloper.com

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