Industrial Property, News

Wacol industrial site sold for over $17 million

Wacol industrial site

In a sign of the continued strength of the industrial market Colliers Queensland has transacted a $17.028 million sale of a 28,380 sqm industrial site in Wacol on behalf of MADAD Investments.

Colliers Queensland industrial agents Charlie Hopper and David Brisk secured the deal, at 24 Industrial Avenue Wacol, selling to a local owner occupier future proofing their operations.

“Continued demand for land and hardstand has driven record breaking sales and leasing transactions through the western corridor over 2023, with 7.5 hectares settled in the last two months alone,” Charlie Hopper says.

The recently cleared site, which was previously occupied by Alliance Paper attracted the attention of the buyer due to its strong income and future ability to occupy.

“This is a key transaction for the market which reflects a $600/sqm unimproved land rate and further positively resets land values for the western corridor.

“We were able to extract a cash unconditional contract with a 60 day settlement which mitigated contract risk, allowing MADAD Investments to sell with confidence. The sale also reflected an initial yield of 6.16 per cent which is a great result,” Charlie adds.

Colliers Queensland Industrial Director David Brisk says Brisbane $10 million+ industrial investment sale volumes were currently $800 million behind the 10 year average with occupier led transactions accounting for a large amount these deals.

“This being said the recent cash rate pauses have noticably changed buyer sentiment with a lot of groups who were previously ‘on the sidelines’ now a lot more eager for opportunity,” David says.

“The industrial sector’s strong performance is currently underpinned by the occupier market, with rental growth currently at its highest level on record.

“Rental growth has remained elevated over the past quarter, with prime rents jumping 6.2 per cent to an average $145/sqm (19.6 per cent YoY). Combined with the 7.7 per cent rental growth recorded in the first quarter of the year, prime rents are up 14.4 per cent over the first six months of 2023.

Rental growth was even more pronounced in the secondary market at 11.7 per cent in Q2 2023 or $125/sqm,” David Brisk adds.

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