What is Driving the Industrial Market at the Moment?

One of the most common questions I get asked as a commercial agent is: “What the hell is going on with the industrial market?” Industrial Real Estate has been the hot property commodity of 2020 into 2021 – sales were up 13% on the 10-year-average and showed the greatest resilience out of the commercial property sector throughout the COVID-19 downturn. However, retail and office spaces were hit hard with cash flow troubles and increased vacancies (although now they are recovering strong). This begs the question – what makes industrial different?

1. eCommerce

Record online spending occurred during covid – with people at home and on their phones more than ever – more time means more ad consumption; more ad consumption means more spending. Business’ warehousing and logistics needs have increased drastically and driven demand for warehouses. You can read more about the eCommerce boom here

2. Data centres

Online schooling, video conferences, online gaming, online shopping, social media usage, working-from-home and content streaming all has driven demand for data centres. Data centre groups acquired over 55ha of land across Australia, driving prices up well above market price.

3. Population growth

Strong population growth in Queensland in particular has fuelled the industrial property sector. Having the second-highest population, many people, families and businesses are moving north seeking to avoid higher lifestyle price tags. In fact, interstate migration is up over 90% from the 10-year average (read more about this here)

4. Increased Infrastructure Spending

Brisbane has had huge infrastructure spending over the last few years – quickly opening up the outer region to businesses and employees. Now industrial areas are easier to access, shortening transport times and easing logistics. Projects such as the Logan Enhancement Project, Coomera Corridor, Pacific Highway Upgrades and recently the North-West Traffic Corridor all increase the accessibility and demand for industrial property.

If you’d like to capitalise on this market, feel free to call Seba Sabawi on 0402 324 978.

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