2025-08-18-莱坊-Brisbane_Industrial_Precincts_Report_Q2_2025页_1mb

Brisbane Industrial Market Q2 2025 Summary

Core Content

This report provides a quarterly update on the Brisbane industrial market, highlighting key trends across different industrial precincts, including investment activity, vacancy rates, leasing demand, and rent and yield movements.

Key Trends

• Industrial Turnover: Increased to $581 million in Q2, surpassing Q4-24 levels, driven by strong activity from both private and institutional investors.
• Yield Movements:
  • Super Prime Yields: Down 5bps in Q2, with a year-on-year decline of 10bps.
  • Prime Yields: Down 6bps in Q2, with a year-on-year decline of 18bps, averaging at 6.03%.
  • Secondary Yields: Down 12bps in Q2, with a year-on-year decline of 72bps, averaging at 6.62%.
• Vacancy Rates:
  • Total Vacancy: 5.1%, down 16bps q/q but 88bps higher y/y.
  • Prime Vacancy: 6.8%, with 2.9% from completed speculative space and 2.0% under construction.
  • Secondary Vacancy: 3.6%, slightly elevated in Q2.
• Leasing Activity:
  • RTM Leasing Take-Up: 737,000 sqm in Q2, with 14% lower y/y.
  • Pre-Commitment Activity: Notable in the South West, with Officworks' 77,100 sqm pre-lease at Redbank.
• Rent Growth:
  • Prime Rents: Rose 2.5% y/y to $163/sqm net.
  • Secondary Rents: Stable in Q2 at $142/sqm net, up 2.9% y/y.
• Land Values:
  • Continued to rise due to limited land availability and strong demand.
  • Sub-5,000 sqm lots increased 21% y/y to $800/sqm.
  • Sites 1-5ha rose 18.5% y/y to $642/sqm.

Precinct Analysis

South

• Vacancy: 6.9%, up 76bps q/q, with prime vacancy at 12.1% and secondary at 3.0%.
• Leasing Take-Up: 246,000 sqm, down 14% y/y.
• Yields:
  • Prime: 6.1%, down 17bps y/y.
  • Secondary: 6.6%, down 81bps y/y.
• Rents:
  • Prime: $163/sqm net, up 3.2% y/y.
  • Secondary: $142/sqm net, up 2.9% y/y.
• Incentives: Prime incentives at 13.5%, up 100bps y/y.

South West

• Vacancy: 4.3%, up 20,499 sqm q/q.
• Leasing Take-Up: 252,000 sqm, up 25% y/y.
• Yields:
  • Prime: 6.1%, down 9bps q/q and 14bps y/y.
  • Secondary: 6.47%, down 36bps q/q and 81bps y/y.
• Rents:
  • Prime: $164/sqm net, up 2.5% y/y.
  • Secondary: $145/sqm net, up 2.1% y/y.
• Incentives: Prime incentives at 13.5%, up 100bps y/y.

South East

• Vacancy: 2.6%, up 7bps q/q.
• Leasing Take-Up: 63,336 sqm, down 20% y/y.
• Yields:
  • Prime: 6.1%, down 6bps q/q and 11bps y/y.
  • Secondary: 6.6%, down 25bps q/q and 72bps y/y.
• Rents:
  • Prime: $160/sqm net, up 1.3% y/y.
  • Secondary: $145/sqm net, up 2.1% y/y.
• Incentives: Prime incentives at 11%, stable q/q.

Trade Coast

• Vacancy: 4.5%, up 23bps q/q.
• Leasing Take-Up: 131,000 sqm, down 47% y/y.
• Yields:
  • Prime: 5.9%, down 18bps y/y.
  • Secondary: 6.53%, down 54bps y/y.
• Rents:
  • Prime: $206/sqm net, up 2% y/y.
  • Secondary: $177/sqm net, up 1% y/y.
• Land Values:
  • Sub-5,000 sqm lots up 37.1% y/y to $1,090/sqm.
  • 1-5ha sites up 9.7% y/y to $845/sqm.

North & Greater North

• Vacancy: 5.2%, down 77bps q/q but 9% higher y/y.
• Leasing Take-Up: 42,000 sqm, down 25% y/y.
• Yields:
  • Prime: 6.0%, down 15bps q/q and 35bps y/y.
  • Secondary: 6.6%, down 75bps y/y.
• Rents:
  • Prime: $176/sqm net, up 8.6% y/y.
  • Secondary: $155/sqm net, up 7.6% y/y.
• Land Values:
  • Sub-5,000 sqm lots up 19.2% y/y to $775/sqm.
  • 1-5ha sites up 19.1% y/y to $685/sqm.

Major Transactions

• ESR's Wacol Logistics Hub: Sold to JD.com for $240 million at a core market yield of 5.60%.
• 90 Quinns Hill Rd, Stapylton: Sold for $48.75 million at a yield of 5.94%.
• 76 Quinns Hill Rd East: Sold for $40 million at a yield of 6.25%.
• Goodman Group's Gibson Island: Acquired for $194 million ($334/sqm on raw land), sold as a future development site.

Summary of Key Points

• Investment Activity: Increased in Q2, with renewed investor confidence and rate cuts supporting yield compression.
• Vacancy: Remained above average, with a significant portion attributed to speculative development.
• Leasing Demand: Rose across precincts, with pre-commitments playing a key role in driving take-up.
• Yields: Tightened across all grades, with prime yields showing the most significant declines.
• Rents: Prime rents increased slightly, while secondary rents remained stable.
• Land Values: Continued to rise, especially for smaller lots and sites, due to limited availability and strong demand.

Contact Information

• Research & Consulting:
  • Jennelle Wilson: +617 3246 8830 | jennelle.wilson@au.knightfrank.com
  • Wade Leofa: +617 3516 8816 | wade.leofa@au.knightfrank.com
• Valuations: Tom Hadfield: +617 3193 6822 | tom.hadfield@qld.knightfrankval.com.au
• Industrial Investments, QLD: Elliot Ryan: +617 3246 8828 | elliot.ryan@au.knightfrank.com
• Industrial Logistics: Mark Clifford: +617 3246 8888 | mark.clifford@au.knightfrank.com
• Research & Consulting: Ben Burston: +612 9036 6756 | ben.burston@au.knightfrank.com