Since the joint venture acquisition of an older style industrial facility in Brisbane’s northern suburbs in December 2015, White & Partners and State Development Corporation (SDC) have worked hard to improve the property and perform much needed maintenance in order to attract tenants.
Ray White Commercial’s recent Between the Lines publication highlights a slowdown in supply additions across this market coupled with stable take up levels. This has translated into a steady vacancy environment which is expected to further improve over the next 12 months. The Manager has been proactive offering flexibility with both price and size in order to meet the market. This tactic has led to the letting up of 77% of the vacant area within the first 13 months. Interestingly, the majority of the space has been absorbed by small business committing to sub 500sqm at circa $110/sqm with minimal incentives.
The Property now generates sufficient holding income to sustain the Trust whilst it continues to pursue the investment strategy of rezoning the land for mixed use development. The Manager has met with Brisbane City Council and has been assigned a seat on the advisory panel that will provide feedback and advice to Council during its development of a new neighbourhood plan for the industrial precinct.
Close proximity to amenities such as established transport links, and retail outlets will continue to benefit the property regardless of its underlying use.