Australian Industrial Horizons

18

LOGISTICS & INDUSTRIAL RESEARCH | INDUSTRIAL HORIZONS

TAKE-UP & YEARS REMAINING

At 110 hectares of land take-up per annum between 2019 and 2023, this equates to approximately 550,000 sqm of GLA with an end value of $1.5 billion that has been delivered each year on average.

Brisbane Industrial Land Take-up (hectares)

Industrial land take-up in Brisbane has averaged almost 110 hectares per annum over the past five years; however, it peaked at 160 hectares in 2022, given the record level of pre-commitment activity. Reflecting more subdued levels of take in 2024, particularly from the larger end of the market, which drives the pre-commitment market, land take-up was reduced to around 70 hectares for the year. Take-up has been led by the South and West submarkets, as both have recorded take-up levels of more than 40 hectares per annum since 2019. Take-up in the remaining submarkets has been more limited and reflects a combination of limited land availability in core locations and the more passive ownership of land. Years Remaining Assuming similar levels of take-up going forward, this would imply there are 8.7 years of active land supply remaining while 17.4 years remain when looking at total land supply. However, in reality, take up levels have been capped due to the current ownership structure, as many parcels are owned by privates who are not active in the pre-lease market. Considering this, approximately 5.0 years of active land supply remains across the broader city and less than three years in more infill markets. We note, a change of ownership could quickly activate these sites.

100 120 140 160 180

0 20 40 60 80

2014 2015

2016 2017

2018 2019 2020 2021

2022 2023 2024

10-Year Average

Brisbane Industrial Land Years Remaining

Active Land Supply

Total Land Supply

Land Remaining (hectares)

942

1,890

Average Annual Take-up – Base Case (hectares)

109

109

Years of Land Supply Remaining

8.7

17.4