Yatala Industrial Region Rents Rebound
Demand for industrial stock in the Yatala Enterprise Area (YEA) in the Brisbane-Gold Coast growth corridor has rebounded with a significant increase in tenant inquiry, according to Ray White Industrial M1 North.
Ray White Industrial M1 North Team Leader Lisa Dunne said face rents in the Yatala region have also increased by almost 10 per cent per annum over the past two years.
“The size range in most demand is 100–200 sqm for a mix of tenant types and this has resulted in some strong increases in rents over the last 18 months,” Lisa Dunne said.
“The Yatala market saw some reduction in rents during the 2012/2013 period which is in line with a high level of sales investment into the market, a combination of owner occupiers purchasing their own premises and an increase in investors speculating.
“With fundamentals now more in check, face rents have increased since 2014 by close to 10 per annum to now average $118 per sqm net for prime assets. Secondary assets continue to demand rents in the $80–$100 per sqm range with incentives still a feature of this market.”
The YEA includes the northern Gold Coast suburbs near the M1 Motorway of Yatala, Ormeau, Beenleigh, Stapylton and Upper Coomera.
Ray White Commercial Head of Research, Vanessa Rader, said investment into the broader Gold Coast region has been driven by infrastructure improvements due to the 2018 Commonwealth Games plus development into Southport via light rail and medical facilities.
“For the Yatala industrial market, larger institutional owners still remain while private investors and owner occupiers have been active in the smaller industrial unit market particularly as rental rates have seen some increases during 2016,” she said in the Between the Lines Yatala Industrial Overview report October 2016.
“Low interest rates and rising residential prices have encouraged diversification of funds into higher yielding investments resulting in another spike in investment activity during 2015/2016.
“As a result of this, average capital values have increased 5.69 per cent over the last year to now range between $1,200 per sqm and $1,900 per sqm.”