THE BILLION-DOLLAR INDUSTRIAL SECTOR

There’s not a lot of sexy when it comes to sheds. But in commercial circles the humble industrial sector is one of the key drivers of a healthy commercial market nationally and it’s a similar story for the Sunshine Coast sector.

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Across Australia last month’s Colliers Industrial Review reported $6.45 billion in industrial assets changed hands throughout 2014/2015, an increase of 56 per cent on the previous year. At the centre of that is the logistics and transport industries, where vacancy rates are low and there is limited new supply.

Although a significant part of the wider Australian industrial market is being driven by offshore investors, who purchased more than a third of the available stock, experienced purchasers from around the country are making offers on key coastal sites.

Luxe Commercial managing director Chris Sales says there was a similar trend on the Sunshine Coast, where conditions were extremely favourable with limited supply and a strengthening demand for well-placed industrial sites.

Sought-after areas include pockets west of Caloundra and the light industrial zones around Warana.

“Good quality sites that are in well-located areas close to major arterial roads are highly sought after by investors,” Sales says.

“It’s a simple proposition for many buyers, who are looking for a low-risk but consistent return. These are sites that attract high quality and long-term tenants and the yields are extremely good compared to cash in the bank. We’re finding development sites suitable for such industrial holdings are also being sought after by savvy investors.”

Sales says Sunshine Coast demand was being driven by long-term experienced investors and buyers with self-managed superfunds looking for consistent returns and long-term gains.

The industrial sector is being underpinned by the growth of the Sunshine Coast and the attractive lifestyle. He said businesses could see the benefits of relocating or expanding into the region due to its favourable weather, steady employment and ease of access.

You can read more of Chris Sales’ editorial property pieces in My Weekly Preview.

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