A 19 unit industrial complex in Pinkenba has sold out for more than $17,500,00.
Located at 15 Holt Street, the brand new complex was completed in 2019, with titles issued in July 2020.
Product of an active local developer, with sizes ranging from 198-370sqm, the units were sold to 11 owner occupiers and seven investors, with one buyer combining two units to create a 577sqm space.
The properties were marketed by Ray White Commercial TradeCoast agents Jack Gwyn and Jared Doyle, and Ray White Commercial Milton agent Maclay Kenman.
“Marketing commenced on an open basis in mid-2019 but despite a few early transactions, the internet was flooded with ads from many agencies creating a false sense of oversupply which stalled transactions,” Mr Gwyn said.
“In February 2021 Ray White Commercial TradeCoast and Ray White Commercial Milton took over marketing on a joint exclusive basis which ensured that accurate and neat information could be provided to buyers and tenants, which sparked a flurry of transactions, selling out the final 16 units in a shorter time frame than the first three sales.”
Mr Gwyn said there was a slight pause in the market at the start of the pandemic in 2020, but it kicked back off again in May 2020, with vacancy declining ever since.
He said he felt the market in 2023 would be very much driven by occupants.
“Industrial rents had been stagnant for as long as I had worked in the industry, however, they have seemed to go up by about 30 per cent over the past 18 months, whilst incentives have been diminishing,” he said.
“The rental growth seems to be combating softening yields, leading to a stabilisation of investment stock values.”
Mr Gwyn said demand from owner occupiers remained high.
“They are paying similar rates for vacant stock as investors are for good leased stock. I feel this will reduce the supply of new leased investments as developers will be less motivated to use incentives to lure tenants in if they can just sell to owner occupiers for a similar price.
“The minimal vacancy will drive tenants to new developments, however, I don’t see them getting as attractive incentives as they had in the past.
“In my opinion we will see more tenants renewing in their existing facilities instead of moving around, unless the size of their current facility is no longer sufficient.”