T&L tenancy interest on rise in Berrinba: Colliers


Ceva, DHL and Phoenix Transport amongst those setting up base south of Brisbane

T&L tenancy interest on rise in Berrinba: Colliers
T&L firms' take-up in Berrinba has not gone unnoticed

 

Southeast Queensland’s transport and logistics growth is boosting demand for related warehousing and storage space.

Following the completion of the Logan Enhancement project, a key infrastructure upgrade for the Berrinba region, the area has seen growth in tenant and investor demand, with over 81,000 square metres property absorbed within the last three months alone.

Many companies including Ceva, Metcash, DHL and Phoenix Transport have set up offices and logistics centres within the Berrinba industrial precinct recently.


More on Phoenix Transport's warehousing push, here


Colliers International’s national director of industrial Matthew Frazer-Ryan, who is marketing leasing opportunities in the precinct on behalf of the institutional owners, believes if occupancy interest continues at the current rate the remaining 35 hectares of available space is likely to be taken up within the next two years.

"Berrinba has been hamstrung for several years whilst the Logan Enhancement Project has been under construction, and now that this major infrastructure upgrade has been finalised the Berrinba region has become a highly sought after and competitive industrial market due to a great mix of institutional owners in the precinct, all hungry to secure tenants and develop stock on long term leases," Frazer-Ryan says.

"Owners that are currently active in Berrinba and have development land available include Frasers Property, GPT, Charter Hall, Logos and ESR.

"To ensure future supply needs are met engagement with Logan City Council is imperative to manage the delivery of employment generating land.

"Also, bringing forward the funding and financial assessment of the long mooted Park Ridge Connector will further enhance connectivity and the flow of freight and commercial traffic through the precinct. 

"Logan Motorway industrial areas are very tightly held and now that the $512 million Logan Enhancement Project has been finalised this has opened up arterial road access and has dramatically improved connectivity to the area.

"This is a critical reason why occupiers are moving and expanding further in the precinct."

The five major leasing deals which have been secured in the last three months’ have terms ranging from five to 10 years and rents ranging from approximately $110-120 per sqm subject to building design and specification.

The deals include:

  • Wing taking up 17,800sqm within Ascenda’s spec building at 1-7 Wayne Goss Drive
  • Ceva committing to 20,800sqm within Frasers Property’s estate at 125 Gilmore Road
  • DHL leasing 20,600sqm within GPT’s Wembley Business Park
  • Phoenix Transport taking up 9,999sqm within Frasers Property’s SouthWest1 at 43-61 Kellar Street
  • Huhtamaki committing to 12,635sqm at Wayne Goss Drive also within the SouthWest1 estate. 

Additionally, two of the biggest industrial investment transactions in South East Queensland year to date have occurred in the surrounding areas of Parkinson, according to Colliers International:

  • a half-stake in the Coles tenanted cold storage distribution centre that was sold for $134.2 million
  • and the $183.6 million sale of Metcash tenanted distribution centre in Crestmead.

 

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