Rising commercial rents on Brisbane’s TradeCoast are squeezing out tenants and forcing them to look for more affordable locations. We take a closer look at the factors driving these rental increases, and where these tenants will go.
The most recent Brisbane Industrial Market Overview, published by real estate firm Knight Frank, found prime rent was stable at an average of $116 per metre squared. However, this stability made these properties much more expensive than in Brisbane’s North and South East, the next most expensive districts. Here rents cost $107 and $105 per square metre, less than they did in the last report.
Secondary rents have increased by 3.4 percent at a time when rents in every other Brisbane region have fallen by at least 2.4 percent. Secondary properties now cost $95 per square metre, $9 more per square metre than the city average.
What’s Driving Rising Rents?
Growing demand for warehouses of all grades close to Brisbane’s port and airport has driven rents in the TradeCoast sky-high. This master-planned corporate office park and industrial community is well serviced by the adjacent Gateway Arterial Motorway. With around 1,500 businesses represented here, TradeCoast appeals to companies wanting to be close to clients and competitors.