This article is from the Australian Property Journal archive
Clarence Property’s $300 million Hub Heathwood industrial development has reached 31,000sqm in sale commitments, as occupier demand remains high across Brisbane.
Located at 731 Johnson Road in Heathwood, around 19km from the CBD, the estate spans over 17-hectares and will deliver 24 lots in total.
Purchased by Clarence Property for $30 million earlier this year, five lots spanning 31,000sqm have now been committed via a limited release in Stage 1 of the project.
Mark Clifford and Lachlan Hateley from Knight Frank negotiated the deals and are marketing the remaining space on behalf of the fund manager.
“We have seen massive levels of interest from industrial occupiers in Brisbane in the development,” said Clifford.
“As construction on the project has now started, levels of interest and enquiry are set to grow substantially, particularly given the critically low levels of industrial land and the record low vacancy in industrial warehouse stock in Brisbane.”
With ongoing construction delays and rising costs cutting the industrial and logistics supply pipeline for 2022 by 600,000sqm, Brisbane’s average prime net face rents have risen by 15% in 12 months, with the city reporting 1.4% vacancy rate for the sector.
While at the same time a recent report found that the rapid growth of the e-commerce sector has left the country wanting for an additional 1,800,000sqm of industrial and logistics space to accommodate demand over the next five-years.
A limited number of lots remaining in Stage 1 have now been released, while the remaining Stage 2 lots are being offered to the market via lease.
“Construction has only just started but already we are seeing a wide range of interest in Hub Heathwood from established business across Brisbane,” said Hateley.
“Occupiers know that this is a once in a lifetime opportunity to secure a piece of this estate, as there is very little land supply.”
Clarence Property will deliver built products for future tenants, with design and construct offerings ranging from 500sqm to 7,000sqm to be available.
“Along with the warehouse and office occupiers, there is going to be some good amenity in Hub Heathwood for the surrounding area. We have received interest from cafés, gyms, indoor sports centres, and child care operators. It’s likely that the development will house all of these types of groups,” said Hateley.
Hub Heathwood, which is positioned immediately south of the Heathwood Logistics Estate and sits just 300 metres from the Logan Motorway, is expected to deliver more than 100,000sqm of high-quality office and warehouse space over the coming years.
“Heathwood is set to be one of Brisbane’s premier business locations, benefitting from significant infrastructure investment including the recently completed Wembley Road interchange and Ipswich Motorway upgrades,” added Clifford.
With construction commencing on the first lots earlier this month, titles are expected to be completed by early-2023, with potential built product scheduled to be delivered by late-2023.
“It’s an exciting time for Hub Heathwood as we begin to create what we see as one of the best industrial estates in Brisbane’s southwest corridor for occupiers looking for quality office warehouse facilities,” concluded Ben Somerville, head of capital transactions at Clarence Property.
