Wacol industrial site bought for over $17 million 

On behalf of MADAD Investments, Colliers Queensland sold a 28,380-square-foot industrial site in Wacol for $17.028 million in the industrial market. 

The buyer was interested in the recently cleared site because of its strong income and potential to occupy it in the future. It had previously been occupied by Alliance Paper. 

Colliers Queensland industrial specialists Charlie Hopper and David Energetic got the arrangement, at 24 Modern Road Wacol, offering to a nearby proprietor occupier future sealing their tasks. 

“Continued demand for land and hardstand has driven record-breaking sales and leasing transactions through the western corridor over 2023, with 7.5 hectares settled in the last two months alone,” said Hopper. 

David Brisk, director of Colliers Queensland Industrial, reports that Brisbane’s sale volumes of $10 million and above industrial investments are currently $800 million below the 10-year average, with occupier-led transactions accounting for a significant portion of these transactions. 

“This is a key transaction for the market which reflects a $600/sqm unimproved land rate and further positively resets land values for the western corridor. 

“We were able to extract a cash unconditional contract with a 60-day settlement which mitigated contract risk, allowing MADAD Investments to sell with confidence. The sale also reflected an initial yield of 6.16 percent, which is a great result,” Hopper added.

“This being said, the recent cash rate pauses have noticeably changed buyer sentiment, with a lot of groups who were previously ‘on the sidelines’ now a lot more eager for opportunity. 

“The industrial sector’s strong performance is currently underpinned by the occupier market, with rental growth currently at its highest level on record,” said Brisk. 

“Rental growth has remained elevated over the past quarter, with prime rents jumping 6.2 per cent to an average $145/sqm (19.6 per cent YoY). Combined with the 7.7 per cent rental growth recorded in the first quarter of the year, prime rents are up 14.4 per cent over the first six months of 2023. 

Rental growth was even more pronounced in the secondary market at 11.7 per cent in Q2 2023 or $125/sqm,” Brisk added.