ESR Australia has leased its first speculative Queensland project – at Willawong, south of Brisbane.
The 12,800 square metre building at 430 Sherbrooke Road, within the ESR Sherbrooke Industrial Estate, was being marketed as two tenancies, but has instead attracted three groups – Bremick, which will occupy 5200 sqm, Davey Water (4200 sqm) and Speed Panel.
The rental agreements are for between three and seven years.
Practical completion is expected next month.
Rents are undisclosed but similar quality factories ask between $115-$125 per sqm net, ex-incentives, according to the landlord.
Decision vindicated: ESR
ESR Queensland general manager, Development, Craig Robertson said the company’s confidence in the asset has been vindicated by the quick uptake of space.
“The exponential growth of the Queensland industrial market has pushed demand into emerging industrial precincts such as Willawong, so we were quite comfortable undertaking the development speculatively,” he added.
Michael Richardson, of the agency’s occupier services department, represented Davey Water and Speed Panel (story continues below).
Permitted to operate 24 hours every day and able to accommodate B-Double trucks, the balance of the 6.1ha Sherbrooke Industrial Estate will contain a 10,700 sqm warehouse, which is pre-committed.
“Occupiers are focusing on improving efficiencies through automation and scale, and businesses are looking to hold more stock onsite, which is driving demand for greater warehouse heights to accommodate increased future stock levels,” Mr Hardy said.
“This has underpinned considerable interest in Sherbrooke Industrial Estate, given its quality construction, large internal warehouse heights – providing the ability to scale racking higher – and the provision of corporate office accommodation for staff,” according to the executive.
The location is near arterial road networks, Brisbane Rocklea Markets, the Acacia Ridge Intermodal, Archerfield Airport and the city’s south west industrial precincts, he added.
The 430 Sherbrooke Rd deals follow Stockland in 2020 securing three tenants to an 18,500 sqm warehouse it was building speculatively at the Willawong Distribution Centre.
Eighteen months ago, Hastings Deering sold a two hectare Industrial B zoned development site in the suburb for $41.5m – more than twice the ($19.4m) price it paid in 2011.
Willawong is about 16 kilometres from the CBD.
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