This article is from the Australian Property Journal archive
ESR Australia has fully leased its first speculative development in Queensland, ahead of reaching practical completion at the industrial estate.
Sitting within the ESR Sherbrooke Industrial Estate at 430 Sherbrooke Road in Willawong, roughly 19km from the Brisbane CBD, the site is now at full occupation, with EST signing off on 12,800sqm of lease commitments.
ESR originally envisioned the site being occupied by two large tenants, when acquiring the site back in 2019, but revised these plans following healthy offers from investors looking for smaller spaces in the 3,000sqm to 5,000sqm range.
“ESR Australia welcomes our new customers and we look forward to working with each throughout the construction period to ensure the facilities truly cater to their requirements,” said Craig Robertson, general manager of development at ESR, Queenland.
The site is now set to be occupied by three tenants, Bremick, Davey Water and Speed Panel, who signed on to terms between three and seven years.
Jack Hardy and Peter Turnbull from CBRE’s advisory & transaction services, industrial & logistics team, negotiated the lease for Bremick.
While Hardy, along with Michael Richardson from CBRE’s occupier business, managed the lease agreement for both Davey Water and Speed Panel.
Rental rates at the speculative development have not been disclosed, however the average rents in the area are around $115-$125/sqm net.
“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. This confidence has been vindicated with the quick uptake of space by Bremick, Davey Water and Speed Panel,” added Robertson.
Building products supplier, Bremick, secured a tenancy for approximately 5,200sqm, while water transfer, conservation, treatment, and filtration service provider, Davey Water, signed on to 4,200sqm and fire and acoustic rated wall systems manufacturer and supplier, Speed Panel, leased a 3,5000sqm tenancy.
“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,” said Hardy.
The rest of ESR Sherbrooke Industrial Estate, which has DA approval for 24/7 access and provision for B-Doubles, were pre-committed following design and construct deals.
The Estate boasts easy access to major arterial road networks, the Acacia Ridge Intermodal, Archerfield Airport and Brisbane’s south western industrial precincts.
“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,” concluded Hardy.
