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King’s
ISSUE 39 | SPRING 2012
Counsel
WHAT HAS
KING’S COUNSEL
ACCOMPLISHED IN
19½ YEARS?
YOU MIGHT BE
SURPRISED!
PAGE 2
NO MORE DEADLINES:
A FOND FAREWELL
FROM TOM RICHMAN
PAGE 3
PLANNING FOR
LITTLE JOY IN THE TRANSPORT
BUDGET, BUT MARKET INFRASTRUCTURE
PROSPECTS ARE RELIABILITY
PAGE 8
IMPROVING DESPITE
LOW BUSINESS
A REGIONAL PARKS
CONFIDENCE
PAGE 5 SYSTEM FOR SEQ
WILL BENEFIT
THE INDUSTRIAL
PROPERTY SECTOR
PAGE 12
INDUSTRIAL SALES AND
LEASING TRENDS IN
AND ABOUT BRISBANE
PAGE 15
www.kingco.com.au
What has King’s Counsel
accomplished in 19½ years?
You might be surprised!
Since its inception in 1993, the biannual King’s Counsel neighbourhoods would lend themselves to TOD usage.
newsletter has proudly showcased King & Co Property We then gave measured kudos to the Office of Urban
Consultants’ role as a good corporate citizen by placing Management as well as the intentions of the SEQ
a number of important issues on the public/political Regional Plan, and detailed the role of the former’s
agenda for consideration, debate and, in many cases, successor, the Urban Land Development Authority.
implementation. On a less optimistic note, the King’s Counsel offered
That being said, now seems as good a time as any relatively critical pieces on various planning shortfalls
to toot our horn a little by highlighting the articles including the Brisbane’s Gateway Area Strategic
from which these issues gained prominence. It also Planning Study, the lacklustre precursor to the Australia
seems an appropriate occasion to remind ourselves TradeCoast; the Regional Transport Plan and its refusal
and our readers how one company can have such a to consider tunnels; profound flaws in the Integrated
wide influence on public policy when it reinforces a Planning Act 1997, as well as its stillborn predecessor, the
lucid presentation of facts with good old fashioned Planning, Environment & Development Assessment Bill.
nagging....and provides credibility by receiving no In addition, we highlighted limits to the West End/
direct financial benefits in return. Woolloongabba Local Area Plan, particularly vis a vis
For example, it’s generally recognised that a series
of King’s Counsel articles, and the lobbying behind “…King’s Counsel articles, and the
them, were, to a great measure, responsible for the
current flurry of cross River tunnels and bridges, lobbying behind them, were, to a
ala TransApex...an assumption that has been great measure, responsible for the
acknowledged by the RACQ and the Courier-Mail. On
the other hand, our damning criticism of the Briztram current flurry of cross River tunnels
Light Rail Project more than a decade ago helped to and bridges, ala TransApex…”
provide the intellectual basis for its demise.
Prior to these, we put forth arguments for a better road
link between Brisbane and the Gold Coast, the result affordable housing and retail, and often lamented that
of which helped lead to the Pacific Motorway and the there was no Federal and/or Statewide planning policy.
opening up of the corridor now encompassing the Similarly, we constantly pushed (and still push) for more
Yatala Enterprise Area. Similarly, our constant insistence planning department staffing in order to speed up
that Brisbane was running out of serviced industrial the development application process and practically
land was said by some to have laid the groundwork for begged, albeit unsuccessfully, for the BCC and State
the AustraliaTradeCoast concept, the Western Corridor Governments to provide an assessment of how much
and other greenfields developments. industrial land existed in SEQ, either improved or
potential.
Likewise, there were articles relating to the Urban
Renewal Task Force’s positive impact on New Farm, Furthermore, and with some prescience considering the
The Valley, Newstead and Bowen Hills, while features current economic climate, we tendered countless reasons
on the Mixed Use Development Act, as well as why governments at all levels must wean themselves from
Volumetric Titling legislation, provided the legal balanced budget, low tax shortsidedness if South-East
underpinnings for the redevelopment of disused Queensland was ever going to build the infrastructure
quarry sites and the Transit Oriented Developments required for its ongoing economic success. In doing so,
(TOD) concept. As to the latter, we also conducted an however, we cautioned against a reliance on Public Private
in depth investigation for the Brisbane City Council Partnerships (PPP), which we mostly found (and find) as
of which railway stations in Brisbane’s industrial little more than dressed up pyramid schemes, all with a
NO MORE DEADLINES:
A FOND FAREWELL FROM
TOM RICHMAN
After nearly 20 happy years with King & Co and
39 issues of King’s Counsel under my belt, my
wife has finally convinced me that, at 70, I should
start to travel while it’s physically and mentally
still possible. In other words I’m retiring.
While there’s an excitement to all this, particularly
around the prospect of being deadline free for
the first time in 30 years (before King & Co
I wrote for a newspaper I owned), there are also
downsides to consider, including my no longer
being able to represent a publication with such
potential for blowing up in the face of any government
a positive impact on this great city of ours, or to
that overuses them. Instead, we argued for government
work for a firm which, mainly in the name of its
borrowing, either through Treasury, super funds, and/
principal, Phil Ainsworth, not only stood behind
or possibly via plebiscite driven Municipal Bonds, as
me when I wrote about the most provocative of
is practiced in the US for 85% of its road funding. In
issues, but proved, against all my past instincts,
any case, we believe our warnings went a long way
that good corporate citizenship and business
towards curtailing PPP usage by the Queensland and
success are not mutually exclusive.
BCC governments when compared to other states and
cities, albeit clearly not enough to prevent the financial In addition, I’ll miss the many professional
debacles surrounding the River City Motorway and relationships that developed over the years,
BrisConnections floats. some based on the King’s Counsel’s reputation,
specifically, or on King & Co’s, generally.
We also published guest commentators who touted
Whatever the case, taken together it offered
the benefits of funding infrastructure by way of
me unparalleled access to Brisbane’s decision
Betterment Charges on land appreciation or through
makers, whether public or private.
the phasing out of the fuel subsidy, with the savings
derived hypothecated for transport infrastructure. We’d Then there’s my colleagues at King & Co: a
like to think all the debate that ensued pressured the finer group you’ll never find and deserving
State Government to earmark $88 billion plus for future of the respect they’ve garnered in this highly
infrastructure, while at the same time commencing long competitive industry. That goes for management,
overdue projects. agents and support staff, alike.
In the meantime, other experts advocated the dispersal Meanwhile, King’s Counsel readers will be
of the State bureaucracy to regional cities, the time relieved to know that it will continue to be
benefits of straightening the rail tracks to Sydney or published once my replacement comes on
how more water could be found by drilling bore holes board...a decision that was given the green light,
up and down the coast. in part, because a recent polling we conducted
showed how much it was relied upon.
More recently, the King’s Counsel promoted the idea
of waterproofing SE Queensland by piping water Looking forward to seeing you when I’m out and
to Brisbane from PNG or northern NSW, as well as about. I’ll be the one without deadline stress.
arguing for the conversion of the Greenbank Military Bye
Training Area into an Inland Port/Intermodal Transport
Hub, in anticipation of an Inland Rail linking the Ports
of Melbourne and Brisbane, as well as replacing the election, we gave equal space to both political parties
Acacia Ridge marshaling yard, which is now approaching in order to find out what each had on offer in relation
its use by date. Proudly, the Greenbank proposal to issues important to the industrial property market.
was under consideration by Federal Government’s We then looked into ways to protect the environment
Infrastructure Australia as well as the Australian Rail Track by listing “61 ways developers can build sustainable
Corporation, then earmarked by a Maunsell/Aecom industrial estates...and still make lots of money.” That
study, commissioned by the Queensland Department of issue also focussed on better ways to design our
Transport, as one of two best long term solutions to the cities and towns via a guest commentary from Dr
need for an Intermodal Transport Hub...a conclusion that Phillip Day, a well respected planner, while another
put Greenbank in a better light than Bromelton or Purga, expert, Dr Phillip Laird, detailed the need to rectify
the State’s preferred, and more remote, options. the “antiquated” rail link from Brisbane to Sydney to
After that, and a few weeks before the 2007 Federal Melbourne. We also asked a range of commercial and/
or industrial developers to describe their philosophy in
regards to sustainability and how they implemented it.
For the Spring 2009 issue we had Special Counsel
Roseanne Meuring critique the Sustainable Planning
Bill 2009 and whether it was a revolutionary or
evolutionary, followed in Autumn 2010 by Dr Geoff
Edwards’ look into the mooted federalisation of town
Specialist provider of high quality, cost effective and
planning. Also included was an article that patted
innovative fire safety solutions across the complete
an earlier King’s Counsel on the back for its role in
range of Fire Protection Systems and Equipment.
creating the philosophical groundwork for cross river
tunnels, variously thanking Campbell Newman, Jim Fire Detection & Alarm Systems
Soorley, Tim Quinn, Graham Quirk, David Stewart,
Portable Fire Extinguishers Fire Hose Reels
David Hinchliffe, Paul Lucas et al for carrying the
ball to fruition. (but not always getting it right on the Automatic Fire Sprinkler Systems
funding models, e.g. PPPs). Fire Hydrant Systems
The next issue had Dr Phil Day wonder about the Diesel and Electric Booster Pumps
lawyerisation of the now legislated Sustainable Fire Warden, Fire and Evacuation Training
Integrated Planning Act 2009, followed by Dr Edwards’ Major Sponsor Nth Burleigh Surf Life Saving Club
reflection on planning post flood. We then outlined
how the success of King & Co’s activities via the King’s
Counsel proved that good corporate citizenship
and good business are not mutually exclusive.
Also included was our proposal that the State/City
Governments reduce their land taxes and rates to
reflect the post flood economic realities. Sadly we also 07 3399 8988 www.eversafe.net.au
offered our condolences to the family of Dr Day after Qld BSA Licence Number: 754658
his passing.
Dr Edwards then wrote about how and why property
professionals should be concerned about the natural
environment in industrial suburbs, followed by our A better way
argument against the doom and gloom sorts who
overlook how basically healthy our economy is. with architecture...
The penultimate issue carried developer Garry The ARTAS Way Retail
McNamara’s complaint that the State Government’s
Industrial
introduced Infrastructure Fees will hamstring new
industrial projects...an article that brought a personal Residential
(and positive) response from the Premier. Finally, the Institutional
issue your reading will not only offer articles relevant Commercial
to SEQ’s industrial property property market, but will
include a fond farewell by its writer and/or editor, who, Site Feasibilities
on turning 70, is retiring. Construction Services
On our website you can find a list of all the articles that Development Concepts
have appeared in the King’s Counsel over the last 19½ Construction Documents
Artas Architects
years. While some were written with clear advocacy in and Planners DA Lodgement Drawings
mind, others were only for general interest and had no Level 2
great impact other than “just” being a good read. It 119 Melbourne St
ARTAS
also includes our regular market commentaries...ones South Brisbane Q4101
that are widely cited by the press, trade publications Phone (07) 3846 5017
Fax (07) 3846 5821
and research organisations.
brisbane@artas.com.au
If you see any articles that strike your fancy, don’t A R C H I T E C T S
hesitate to contact me at t.richman@kingco.com.au
and I’ll make sure you get a copy. Discover The ARTAS Way at www.artas.com.au
B r i s b a n e | Syd n ey | M e l b o u r n e | L a u n c e s t o n | H o b a r t
Little joy in the budget, but
market prospects are improving
despite low business confidence
Given Australia’s economic background, the recent opposite parameters are seeking sound properties
State budget was in line with other governments and for the future. However the improvement in credit
predictably focussed on fiscal responsibility, i.e. cutting availability has ensured some transactions have occurred,
spending and investment. In relation to the property mostly under $3million, with a proportionately high
market, and despite the lobbying of the Property number of these under $1million. Vacant buildings still
Council of Australia Queensland, land taxes and stamp comprise the majority of sales, with investments slowly
duties remain unchanged, spending in infrastructure increasing. The number of land sales remain low but
restrained and only promises minor changes to the are increasing. Meanwhile, when was the last time one
Planning Act...the industry has little to crow about. That saw the difference between interest rates and yields
said, the residential building sector may receive a boost widening and approaching 4%?
with the $7,000 payment to first home buyers being Although properties of less than $5million have seen a
revamped by being increased to $14,000, but only to low turnover, with rents and yields softening, there has
first home buyers of new homes with no stamp duty on not been either a drastic drop in rates or a blow out in
those under $500,000. yields. This is probably related to the low release of
The Australian economy is growing soundly, driven by stock into the market, the lack of demand and relatively
the mining and resource sector, with declines in prices low business confidence.
cancelling or deferring less profitable investments/ Banks are a little more relaxed with their credit and
projects. Industries affected by the high dollar, e.g. have increased their LVRs for some investments to 70%
tourism, are doing poorly while most others remain while decreasing their interest rate cover demands...a
weak, which explains, generally, the low business much sought after relief. Although the RBA is presently
confidence. A broadening of investment after mining,
probably into the construction and property markets,
will become the next driver for the economy but this
will take time – well into the decade. Inflation remains
subdued but if the uncertainty in Europe and the slow
growth of the US continue, interest rates may be cut
should the economy become too soft. holding the cash interest rate, and we may see another
More specifically, the commercial/industrial property quarter or half a percent drop before the end of 2012,
market may see more of the same for sometime until the the demand and cost of capital over the next few years
new economic driver grows sufficiently to act as a ‘circuit will eventually drive interest rates back up.
breaker’. Thus the market continues to scrape along the The continuing reluctance of banks to extend credit for
bottom. Some industry reports have indicated a steady commercial, particularly industrial property development
level of transactions around $15 million and above, but and investment, purposes, will continue to hinder growth
these have been mostly in Sydney and Melbourne, and in this market as developers are unable to bring on new
in the office market. There have been few large industrial stock. On the other hand, the lack of new supply will
sales and those which have occurred were from sellers drive the rental and property prices higher.
who have been hard pressed, usually private or small
public funds which were relatively highly geared. Pricing Land sales are few and this situation will prevail until
is presently stable with yields between 8% and 9%, bank policy changes. Although construction costs have
which seems about right for this market. Investor focus declined, long approval times, lower rentals related to
has turned to rental growth and the assurance of the affordability and less demand, have depressed prices.
future rental stream. However, it is not expected for prices to fall further.
When the take up of existing stock occurs, and this
The main sellers will be developers and investors who is not too far off, price increases will be first seen in
need to off load their assets to realise profit and/ rentals. The firming of yields will be last but this will be
or ensure healthy LVRs and IRCs. Purchasers with the awhile yet.
Although leasing activity has been variable for some other words, for those who can afford to buy or lease
time, it is coming back strongly. Leases are generally do it soon! Just keep reminding yourself of the growing
shorter but some good ones are coming through. differential between the long term interest rates and the
The shorter term leases are a reflection of the lack of yield range, and do not forget depreciation.
confidence in their businesses and the economy going Sales activity has been greatest under the $3 million
forward, or an expectation of better deals later. There mark, and it is over this price tag where the best buying
is no obvious preference for standalone properties over will occur. If you are able, purchase as early as possible
strata. Discretionary decisions are still being delayed. before demand increases and forces prices higher.
The stock of vacant buildings for lease and sale is Prospective tenants may also take advantage of relatively
steadily decreasing. The higher demand and little lower rentals and negotiate concessions with rental
stock entering the market are beginning to drive rentals review clauses to safeguard against future inflation.
higher. It will become a seller’s market. Availability On the other hand, landlords need to be flexible and
depends on location, style and size. In some locations structure shorter leases or receive earlier than usual
and size ranges, a tenant’s choice is already severely market reviews and to ensure that annual reviews include
restricted. uncapped CPI.
Property markets run in cycles, and with the current one Phil Ainsworth
around the bottom, now is timely to get involved. In September 2012
Berrinba:
Zoned MIBA (Mixed Industry Business Area), the Berrinba which was purchased by Industrial Development Group (IDG)
industrial precinct was designed/designated by Logan City off the plan back in 2006. This new estate was developed in
Council (LCC) as an employment node for the region. It Logan Shire by Indigo Property. It is the first stage of over
was planned that businesses locating there were to those 60 ha of industrial land. The GFC subsequently claimed the
encouraging higher employment opportunities, especially Indigo scalp and stages 2 & 3 sat dormant until recently,
to those of higher skills rather then typical blue collar type with Stage 3 achieving almost completely sold prior to
industries. completion.
Good intensions aside, that is how the area has progressed, Following the success of new industrial estates at Larapinta,
as many high tech industries with skilled employees are Crestmead and Meadowbrook, there has been a need
establishing themselves there. Designed to be a premium for more quality industrial development along the Logan
office/warehouse location in one of the fastest growing Motorway but with faster/easier access. Loganlink South
corridors in SE Qld, it has become one of the largest land is that location. Logan Motorway access is now a key
holdings along the Logan Motorway. requirement for many industrial businesses operating in
The Berrinba Industrial area is made up predominantly of the SE Qld due to its central access and positioning. Loganlink
60 ha Loganlink estate, both South in Logan and North in South provides fast easy access to this and other major road
Brisbane, with Wembley Road as the dividing line, and the LCC networks, proximity to staff and client living areas as well as
developed SouthWest 1 on the Southern side of the Logan a central location to other business and customers in Logan,
Motorway. Australand are also developing a smaller estate the Gold Coast and Brisbane.
closer to Logan City. Meanwhile, Prospect Place, Berrinba, should provide an ideal
All these areas have achieved substantial precommittments location for a business requiring a quality office component
from major industries and businesses. Once Council approval with good warehouse facilities close to major amenities and
is given, Toll can be expected to start construction of a road infrastructure. Being approx 4 kms from the heart of the
43,663m2 depot for its NQX division on 134,317m2 of land, Logan CBD, linked directly to the major road networks via the
with a completion date early next year. In addition, Stoddart Logan Motorway and Gateway Arterial, and within a new and
Manufacturing is putting up a 25,000m2 distribution centre on emerging area underlines this as a premium location of the
a 50,000m2 parcel, while ATCO is amalgamating three facilities future. The Logan City Council concept for this new area is as
it operates elsewhere into a 40,000m2 structure on 97,000m2 a (MIBA) estate, offering space for low impact commercial,
of land. The Stoddart project is also expected to come on line industrial, distribution and warehouse type businesses.
during the early part of 2013, while ATCO’s will be ready early Clearly, Berrinba ticks all the boxes for a modern industrial
2014. estate.
The first estate developed here was Loganlink South Stage 1,
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Planning for
transport infrastructure reliability
The main objective of any transport provider, public or The procedure requires calculations using travel time
commercial, is to administer safe and efficient transport data. However, commonly available data sources do
of people and goods. Reliability, is a measure of the not provide the raw data that make these calculations
variability of travel time, and includes recurrent and possible.
non-recurrent congestion. The reason reliability often It is important to understand reliability in the context
gets left out of the former statement is that, while of a transport network. Reliability has real value, and
inherent to safety and efficiency; it is difficult to assign in transportation it can and should be planned for.
a value. The challenge is in achieving consensus. How There is value in having a road network that is able to
much variation in a trip are people willing to accept? maintain its capacity. There is value in a rail network
What is the economic value of reliable travel time? that is able to accommodate passenger and freight
These are questions that some of our brightest minds services without compromising scheduling.
are trying to answer. Austroads provides expert The planning of the Inland Port at Bromelton has
input to the development of national policies on been in progress for some time. Without adequate
road and road transport issues for Australian and infrastructure, a project of this scale cannot be built.
New Zealand road transport and traffic authorities. Placing the Intermodal freight terminal in Bromelton
Austroads’ Network Operations research program now would be akin to placing a reservoir in the Gobi
includes reliability of the road network as one of its Desert; there isn’t adequate flow into the reservoir, and
focuses. Many of the current projects in the program even if it did fill up, there is nothing to deliver the water
are related to providing and managing a network to the surrounds.
using Intelligent Transportation Systems (ITS) and the
further development of a Managed Motorways system. The Inland Port at Bromelton has the potential to have
Research into road network reliability is not limited to a considerable and positive impact on the economy of
Australia. Queensland and the whole of Australia. The past few
years suggest that there is significant investment in key
The U.S.A.’s Transportation Research Board of the associated infrastructure. Most notably, improvements
National Academies has created a Strategic Highway to the Mount Lindesay Highway suggest a strategy
Research Program (SHRP). It is significant enough of an that is gearing towards the construction of an inland
issue that the U.S.A.’s Transportation Research Board port at Bromelton. The success of the inland port relies
of the National Academies has created a Strategic on improved rail and road infrastructure in southeast
Highway Research Program. This program has four Queensland and beyond.
key focuses, one of which is the concept of travel time
reliability. The Engineers Australia (EA) Infrastructure Report Card
2010 – Queensland, states that two future challenges
The program has funded dozens of projects related associated with rail transport are linked to congestion
to reliability over the past five years and has devoted at Brisbane’s rail crossings as well as the lack of
over eighteen million US dollars to the completion of dedicated freight lines. The only dedicated freight line
active projects. Over the next 2 years, another five currently is the Australian Rail Track Corporation (ARTC)
million dollars of funding is expected for anticipated or leased line and the line to the Port of Brisbane. The
pending projects. overall grade given to Queensland’s rail infrastructure
Procedures previously developed within SHRP enabled was a C-; a grade one would attempt to hide from their
an estimation of cost savings due to an improvement parents.
in reliability. These costs were associated with vehicle The need for an additional rail crossing of the Brisbane
operating costs and the value of a person’s time. River is one of addressing congestion, but also
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improving network reliability and redundancy. Any potentially creating 30,000 jobs, a high amount of light
maintenance or incident that requires the closing of and commuter traffic would be generated in addition
one of the existing crossings would potentially have to significant road freight traffic.
significant negative consequences on rail services. With the exception of the upgraded section of the Mount
The negative impact of the above issues contributed Lindesay Highway (from Brisbane to 12.5km south of
to the below average grade. Even more alarming is the Logan Motorway), these two roads are typical two
the absence of “alternative funding models for new rail lane regional highways; limited overtaking opportunities,
infrastructure”. This clearly implies that there would be regular at-grade driveways and intersections, narrow
no mechanism to pick up the slack if the current funding shoulders and clear zones, and less-than-ideal vertical and
system fell behind. Failing to resolve the two key issues horizontal alignment in places. These are not necessarily
may mean that the true economic value of the inland port roads that will offer a comfortable environment for road
would not be realised. users once there is additional traffic demand generated
Both the EA report card and the Queensland by the Bromelton development.
Government Mount Lindesay/Beaudesert Strategic Recommendations made in the MLB STNI, include
Transport Network Investigation (MLB STNI) an entire upgrade of the Mount Lindesay Highway,
acknowledge a future need for a new intermodal from a two to a four lane freeway (2 lanes in each
terminal. However, the performance of the port will be direction) and Beenleigh-Beaudesert Road from a
dependent upon the ability of the surrounding road two to a four lane arterial form. These improvements
network. The EA Infrastructure Report Card 2010 also are in addition to extending the Gateway Motorway
handed out a C- for the roads for the entire state. The south of the Logan Motorway and constructing an
two major highways in the vicinity of the port are the east-west Strategic Infrastructure Corridor, 3-lanes in
Mount Lindesay Highway and Beaudesert-Boonah each direction, between Flagstone and the M1 Pacific
Road. The Mount Lindesay Highway runs predominantly Motorway at Yatala. Should the additional roads be
North-South from Brisbane to just south of the New constructed, a network with redundancy would be in
South Wales border. Beaudesert-Boonah Road is part place, allowing multiple routing options in the event of
of route 90 that connects the Cunningham Highway crashes, road works, or natural disasters.
in Kalbar, to the M1 Pacific Motorway in Nerang. It Planning a reliable transport network goes beyond
is anticipated that the Mount Lindesay Highway and designing it to be more flood resistant. A multitude of
Beaudesert-Boonah Road will bear the greatest burden factors need to be considered when planning a reliable
of the traffic impacts caused by the development of transport network. While advocating for infrastructure
the inland port. With the Bromelton development improvements can lead to addressing the key issues
Planned new corridors and upgrades
of existing corridors will help in realising
the full benefits of an intermodal freight
identified in the EA Infrastructure Report Card, it may The port is expected to put additional truck traffic
not create a best-practice based network. While this on the supporting highways. Crashes involving large
may not seem like an issue worth getting animated trucks are generally more spectacular due to their size
about, consider the following: about half of congestion and momentum when travelling at highway speeds.
is a result of non-recurrent congestion. The main Spectacular crashes also often involve spectacular
causes of non-recurrent congestion include work zones, delays to motorists as the road is cleared. Reported
weather, and traffic incidents. Traffic incidents make up crashes involving trucks in August of this year on
25% of general highway congestion. In regional areas, the Bruce Highway, another highway of regional and
such as where the Bromelton Inland Port is proposed, national significance, include complete closures of the
this percentage can be higher. Recurrent congestion, highway due to a truck hitting a guardrail and igniting
such as bottlenecks or capacity constraints, is less a diesel fire; a truck v. truck crash; and a truck roll-over.
frequent outside of urban areas. Complete closures for clearing a crash on the highway
Weather events cannot be controlled. Transport and can last for several hours and cause considerable
Main Roads or the local council generally manage delays.
work zones to minimise impacts. So if a dent is to be This piece is not intended to serve as a referendum
made in reducing unexpected delays in road traffic on design guides in Australia, but rather to provide
movements, a key area to focus on is in reducing notice to those contributing to the upgrade of roads
crashes. and those concerned with delivery logistics that simply
Planning a road network for reliability requires an following the guidelines and conventional practice will
advanced approach, methods outside of the standard not provide an environment that is in line with current
guidelines, towards safety and reducing crashes. The best practices. By no means does this constitute “gold
current Roadway Planning and Design Manual (RPDM) plating” of projects, but rather planning and designing
relies on Australian and international documents as for traffic safety and travel reliability in mind.
technical resources. The RPDM was based on the best Intelligently, in its introduction, the RPDM states that
practice of the day. However, many of those references it is intended to be a “primary technical reference”
have since been updated or superseded.
and as such consultation with relevant experts and best practice, it is reasonable to expect a noticeable
appropriate documents in non-ordinary situations or reduction of incident-based delays when compared to
a more comprehensive understanding is necessary. conventional practice. Designing transport infrastructure
Example areas include access management, predictive with best practices in mind creates a more reliable
crash methods, the design of auxiliary lanes, and network by essentially preventing crashes. The fewer
driveway planning and design. Use of such tools crashes on a road, the more efficiently and reliably will
greatly advances the ability to incorporate quantitative operate. A reduction in crashes increases the reliability
consideration of safety into planning and project of a corridor and improves the average travel time.
development decision making. Use of such tools
can also help identify deficiencies related to traffic Closure
operations, roadway geometry and cross section, The future inland port requires a supporting rail and
access management, and safety providing a mechanism road transport network that is reliable. This includes
to identify and prioritize improvements. strategic corridors that are resistant to flooding, the
If planning and designing a road, whether it is new provision of redundancy in routes, and the application
construction or an upgrade, it seems counterintuitive of international best practices at safety. The inland port
to not quantitatively compare safety effects of the is considered to be a facility that has national economic
alternatives. And in the case of the upgrading of significance. Planning and designing the future network
the road network in South-East Queensland, where with best practices in mind, can create operations of
reliability will be at a premium due to the increased international class.
freight movements from the inland port development,
understanding the impacts to safety, and ultimately BIO: Zachary Clark is a Senior Traffic Engineer with
reliability, would be even more important. Kittelson & Associates based in Brisbane. The firm
No one owns best practice and it would be naïve and provides comprehensive transportation planning
close-minded to quickly discount a resource prior to and traffic engineering services.
considering its full merit. If the transport network is
designed in such a way that it follows international
The firm’s commercial division acts for:
The Partners offer personal, efficient service at a
reasonable price.
A regional parks system
for SEQ will benefit the
industrial property sector
‘PARK’ is a promiscuous term. To the family man, it can cycling trails, wetlands, children’s farms, group picnic
mean a remote, pristine wilderness, as in ‘national park’; areas and sportsfields. One objective was to maintain
or a nearby mown public space for walking the dog, as a green separation between Brisbane and Gold Coast,
in ‘local park’. To professionals in the industrial property now fast disappearing underneath the usual array of car
sector, on the other hand, it commonly appears in the yards, fast food joints and fenced residential estates.
labels ‘industrial park’ or ‘container park’, neither being To support the open space planners, a major mapping
notable for their green space. and imagery capture program was also funded – and
Yet the owners and tenants of industrial property – all sectors of the property industry have benefited to
and their agents – should take a strong interest in the this day. This unheralded program was justified as part
provision of public green space in the new suburbs. of the ‘soft’ infrastructure, as essential to economic
Why? Because people, as well as buildings, occupy development as the roads and ports know as ‘hard’
industrial property. Because industrial property needs infrastructure.
protection from flooding through soft engineering of The program was funded (indirectly) by an increase in
floodways. Because a program of public park acquisition 1994 of fees for titles searches from $7 to $10 and an
can partly relieve developers of the obligation to increase of the lodgement fee for a survey plan from
surrender land at the time of subdivision. And because $58 to $87. These modest increases in fees were non-
harmonious environs increase the value of any property. controversial and unremarked in the media. This source of
South-East Queensland is under-provided with large funding was considered logical, as the need for additional
recreational parks in the localities of rapid urban public parkland in South-East Queensland was being
development. This paper argues that the time is right for generated by growth in land development, which is
an innovative programme of park acquisition.
“…harmonious environs increase
Background
The SEQ Regional Framework for Growth Management
1993 advocated the establishment of a world class
system of open space lands with recreational, reflected in transactions in the Titles Office.
conservational, cultural, social and economic benefits During its first two years, regionally significant open
to residents and visitors. Academic Darryl Low Choy space was identified through mapping, grants were
chaired the working group which produced the relevant disbursed to local governments for park development
draft report. and several significant properties totalling some 7000
The State Government picked up on this hectares were purchased on the market into public
recommendation and set up the Regional Open Space ownership as parks. The parks included a former
System (ROSS) in July 1994 within the then Department tourist development at Springbrook and what is now
of Lands, with funding of $35 million over five years. a prominent public picnic park on the right bank of
The program would protect open space both by the Logan River under the Pacific Highway. A grazing
planning through current local government planning property was purchased upstream from Gatton for a
schemes (but without new regulation); and by parkland demonstration cattle station and the old pine plantations
acquisition and development. on Bribie Island were purchased to revert to heathland.
‘Open space’ was defined as land or water open to the Mt Neurum, Woodford’s backdrop, was purchased
sky. The new system would include not just undisturbed because the town planning system was expected to fail
bushland for conservation but also farmland, riding and to avoid subdivision into 20 steep lots.
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Local government was initially suspicious of the The Coalition came into government in 1996 and
program because there had been little consultation the ROSS program was not continued in the original
beforehand. However, most of the park purchases and form. However, that Government recognised the far-
development were eventually handled cooperatively. sightedness of the ROSS program and eventually
The program collapsed in 1995 because the re-launched it as a low key cooperative program,
government published confusing maps showing re-named the “Regional Landscape Strategy”. An
50% of South-East Queensland within the open Advisory Committee was established.
space system. This included large tracts of grazing, SEQ still does not have a substantial open space
farming and bush lands overlain by rural or landscape program. In 2003 The Courier Mail and the Brisbane
protection zones in local governments’ planning Institute led a public campaign to have open space
schemes. This was contrary to previous assurances by issues addressed effectively. The then Advisory
then Premier Wayne Goss that private land would be Committee developed a charter that was signed
included only with landholders’ consent (by purchase by more than 60 organisations including State
on market or contractual agreement). In other departments, the Urban Development Institute of
words, the definition of ‘inclusion’ in the Regional Australia, various rural industry groups and more than
Open Space System was changed without public 10 SEQ local governments.
explanation.
Zoning is necessary but not sufficient to provide green
space, for it does not by itself allow public access.
Current Situation
The property boom and population growth of the late
The muddling of the distinction between voluntary park 1990s and early 2000’s put increasing pressure on open
acquisition (non-controversial) and regulatory zoning space at the urban fringe in SEQ and in coastal areas of
(controversial if additional to current town planning Queensland. The SEQ Regional Plan lacks an adequate
procedures) caused a public furore, especially in the downstream capability to implement some of its open
rural community, and the abandonment of the park space policies. It is timely to revisit the issue.
acquisition program was collateral damage.
In the absence of a State-funded park acquisition
program, the provision of recreational parks is left
Subsequent Events to either local Government or to disconnected
The revenues from the increased fees in the Titles Office incremental contributions from private developers
were remitted by the Consolidated Revenue and are still at the time of subdivision. The purchase of some
collected to this day. topographically sensitive landscapes such as flood
topographically sensitive landscapes such as flood individual local governments and is not a reasonable
prone lands, landslip-prone hillsides, ridge tops and impost upon individual property developers.
acid sulphate soils that are expensive to develop would 3.On-market purchase of open space for public
have financial payoffs to the servicing authorities and parkland is not contentious and its subsequent
the property industry (in the form of avoided costs), development for public use is highly regarded by the
although these savings are difficult to quantify. public and by local government.
While local governments generally have a reasonable 4.A public park acquisition program is in the interests
capacity to fund the maintenance of local-scale public of the industrial and commercial property sectors
parkland, they resist funding purchase of the major nearly as much as for the residential property
frame elements such as river valleys and ridge lines specialists.
where the primary beneficiaries are the regional
population. Also, they are not always able to raise 5.A program of park acquisition and development
funds quickly when acquisition would be preferable to should be clearly differentiated from regulatory
opposing a subdivision application. A standing fund is restrictions on development via the SEQ Regional
required. Plan and local planning schemes. It is not necessary
to intervene in statutory planning in order to create a
high quality system of regional parks.
Possible Sources of Funding 6.The term ‘open space’ should be avoided in
Transactions at the Titles Office are off their pre- announcing any new system: ‘regional parks’
global financial crisis peak, but average about 150,000 avoids confusion with restrictions on private land
searches and 50,000 lodgements per month – a fee development.
increase of $5 each would raise more than $12 m per 7. A very substantial and highly visible programme of
annum – adequate for a serviceable parks acquisition park acquisition and development could be funded
program, especially if leveraged with local government. with minimal public pain by a small levy at the Titles
A major advantage of this form of funding in terms of Office, or by a modest regional improvement rate, or
public acceptance is that it is a minor cost of a property a levy on the SEQ tolls.
purchase or property development at the time of 8.The opportunity to secure the regional frame
transaction. elements in perpetuity is closing as the growth
The world-class Melbourne metropolitan parks system boundary expands.
– arguably the best in Australia – was established over Melbourne has recently been voted (again) as the
river valleys purchased via a metropolitan improvement world’s most liveable city. It is suggested that a
rate (some $25 per rateable property). This method delegation from the property industry might inspect
of funding is workable in Queensland and efficient to the metropolitan parks system there to observe what a
collect, although it is visible on rate notices. jewel it is in Melbourne’s crown.
In 2003, the Advisory Committee canvassed a proposal
for a regional open space levy based on $5 per
ratepayer – raising some $5 million annually. There was
strong council support for such a levy. Dr Geoff Edwards is an independent scholar and
Adjunct Research Fellow with Griffith University’s
A ten cent levy on the motorway tolls – also having a
Centre for Governance and Public Policy. He
strong nexus to the population growth that makes a
retired from the Queensland Public Service
park system necessary – would raise $8 million p.a. and
(Mines and Energy) in July 2011. He is qualified
would scarcely be noticed in these days of electronic
in ecological science and public administration.
tolling and rapidly rising fuel prices.
In 1980-86 he was a local government councillor.
In 1984-86 he was Manager, Metropolitan Parks
Key Findings in Melbourne. In 1994-95 he was the Manager
of the SEQ Regional Open Space System in its
1.The ‘frame elements’ of South-East Queensland – the
foundational year. The views expressed are
coast, the rivers, the hillslopes and the cropping lands
his own.
– are of vital importance to preserving the liveability
of the region and the highly valued lifestyle.
2.The urban growth boundary in South-East
Queensland is deficient in large regional-scale public
parkland. Provision of this is beyond the capacity of
Industrial sales
and leasing trends
in and about Brisbane
City Fringe The leasing market on the other hand enjoyed
good takeup, particularly when a space featured a
South City Fringe including West End, high office component, as prospective tenants with
South Brisbane, Woolloongabba, purely industrial needs tended to locate further out.
East Brisbane & Coorparoo Representative transactions include 478m2 of space at
1/14 Hockings Street, a 1,327m2 space at 8 Hockings
Street, a 460m2 space at 384 Montague Road and a
370m2 unit at 1/23 Anthony Street, the latter having sat
vacant for over a year until rented.
AT A G L A N C E
While some of this activity can be attributed to the
suburb’s long standing attractiveness, demand has
been given a significant boost from the Go Between
Bridge, a piece of infrastructure that has gone a long
way in easing isolation, access and traffic congestion
problems historically suffered by tenants who chose to
locate here.
The next six months will see little change in industrial
rates, but from a commercial point of view there will
be a slight increase in line with this precinct’s rising
popularity. Of the few larger industrial properties left
on the city fringe market, it’s important to include a
3,026m2 office/warehouse at 399 Montague Road.
Presently occupied by the BCC, it features three street
frontage, 2,064m2 of hardstand, great access and good
internal height...which, together provides a feasible
alternative for significantly sized businesses needing to
be close to the CBD, for example couriers. Meanwhile,
Industrial sales activity in the South City Fringe precinct older factory stock is to remain obsolete, with owners
of West End/South Brisbane remained constrained breathlessly waiting for the day when their sites can
by a lack of available stock and because only a limited be economically redeveloped or converted into office,
number of listed properties were able to achieve albeit still happy to collect a holding income in the
asking price. This situation was made worse by too interim.
many vendors unwilling to meet the market, deals Sales deals in the Woolloongabba/East Brisbane/
falling over due to a lack of financing or possibly Coorparoo precinct have also been few and far
where land valuations can’t support the contract price. between due to its tightly held nature and low prices
Moreover, some investment properties were suffering acting as a disincentive to putting anything on the
from their owner’s inability to achieve adequate rental market. While there are a couple of developments
rates. Examples of properties for sale include a 205m2 ready to go, nothing can be built as long as banks
office/showroom at 1/5 Cameron Street, or a 428m2 remain reluctant to lend and there’s still a general
freestanding office/warehouse at 8 Ferry Road. The absence of confidence in the broad economy.
next six months should also see little movement, for the
Although Woolloongabba has little industrial leasing
same reasons.
stock available, what does exist tends to be primarily higher than previous yields coming back to the market.
of interest to the service trades such as plumbers. Unfortunately, there is a lack of this type, hence the
Examples include: 1,200m2 of well valued space at competition and quick take up.
96-98 Deshon Street, at $100/m2, and two 465m2 Recent yields achieved in this part of the fringe have
tenancies at 100 Norman Street can be rented for been between 8% and 10%, depending on quality of
$150/m2. Meanwhile, there is some quality commercial the building, land and location. There is minimal land
spaces that should be looked at, most of it of good left for development, leaving high rates as a result.
value, especially when compared to Milton’s and
Newstead’s premium rates. The leasing market remains tightly held, with minimal
larger floor plates being available and no new
Like the last six months, there should continue to be a developments near completion. Rates range from $250/
slow and steady takeup due to an ongoing lack of stock m2 to $350/m2, even as much as 400/m2, depending on
and moderate demand. When combined, this also the quality, location, parking arrangements and fit out.
means that there will be rate stability. That being said,
it also must be presumed that when confidence returns Due to this shortage, and the limited supply to become
to the market we will see potential rate increases. available, fewer incentives and higher rentals are being
achieved. This is also because of the limited options
Coorparoo has seen a steady flow of leasing activity, currently available in the CBD, where mining and
mostly from the service trades sector due to its good resource firms have created near zero vacancy, forcing
access to the Gateway Bridge and major arterials, as many to look to this precinct.
well as enjoying fair rates. Transactions include a 500m2
space at 11 Castlemaine Street, at $90/m2, plus a 367m2 The opening of the M 7 AirportLink and upgrade of the
space at 11 Birubi Street, at $127/m2. Inner City Bypass has also improved the traffic flow and
access to these suburbs, which has previously been a
There’s also a good selection of property on the hindrance.
market like a 574m2 freestander at 26 Cambridge Street
for $120/m2; a 474m2 space at 26 Harries Road, at $130/ Milton
m2, while $100/m2 will get you into premises between
458m2 and 1,800m2 at 67 Holdsworth Street.
The next six months will see a lack of stock in the
AT A GLANCE
likes of Morningside, which should have the effect of
encouraging more businesses to look at Coorparoo.
Once there they are expected to find it represents
comparatively good value and, as a result, should see
good takeup.
North City Fringe including Albion, Fortitude
Valley, Newstead & Bowen Hills
AT A G L A N C E
Presently, there are quite a few buildings for lease in
Milton, generally of the commercial variety, as well
as a couple of smaller office/warehouses throughout
the Lang Parade area. Examples of the latter include a
410m2 space at 21 McDougall Street and a 271m2 unit
at 20/43 Lang Parade. Commercial takeup here tends
to be contingent on CBD overflow provided by mining
and resource industry needs as well as the competing
popularity of the West End/South Brisbane precinct,
with its newly found ease of access offered by the Go
Between Bridge.
Most sales transactions have been to owner/occupiers,
at rates from $3,500/m2 to $4,500/m2, as investment
The North City Fringe, comprising Albion, Fortitude deals have been minimal due to vendors not achieving
Valley, Newstead and Bowen Hills, is seeing astute the yields they need. No change is expected during
investors looking for quality leased premises with the next six months.
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SOLU TIONS
The Australia TradeCoast suburbs of Eagle Farm
and Pinkenba continue to be highly sought after 1300 781 851
by prospective tenants due to their proximity to the
City, Airport and major arterials...a popularity that
has recently been bolstered by the completion of the
M7 AirportLink tunnel, which provides a traffic light Northern Corridor including Banyo, Geebung,
free route from the CBD through to the Brisbane Virginia, Northgate & Zillmere
International Airport. This project forms part of the
$1 billion in infrastructure investment across the entire
precinct over the past 5 years.
More specifically, this part of the Australia TradeCoast
AT A G L A N C E
continues to see the constant takeup of existing
stock, with little to no speculative development on
the horizon. Despite these leasing options continuing
to dry up, rates on all levels remains static, although
A-Grade offerings continue to provide healthy enquiry,
albeit with a indeterminable, and often long, vacancy
period. Bucking this trend is the 150ha master-planned
TradeCoast Central, which is situated on the old-
airport site. It has recently secured several more large
tenants, including Metcash, TNT and Harcourts, with
construction to finish in the next few months. This is
backed up by a large amount of surplus enquiry, which
should ensure the estate continues to be a hive of
activity.
Sales transactions have been predominately owner/
occupier based, largely due to a lack of investment
stock, an example being the $395,000 paid for a 178m2
unit at 13/212 Curtin Avenue. With confidence coming
back into the market, these deals achieved higher than
anticipated results. Purchasers have looked out for
buildings with an upside or refurbishment potential.
Although sales activity on Brisbane’s popular Northern an area only taken up by businesses unable to find
Corridor, which includes Banyo, Geebung, Virginia, vacancies in Brisbane’s more popular and expensive
Northgate and Zillmere, was limited by an ever northside industrial suburbs, is now one of Southeast
increasing lack of stock, what had been purchased Queensland’s fastest growing industrial precincts.
tended to be by smaller owner/occupiers, with value for Indeed potential purchasers and tenants now say they
money being the main underlying factor. want to locate here specifically, a rethink largely due to
Meanwhile, investments have been achieving anywhere road improvements from there to the Gateway plus the
around 8% for small offerings, and 8%-9% for their attraction of state of the art offerings like the 85ha New
larger counterparts, an example of the latter being the Base Enterprise Park. They also have liked its proximity
$3.1 million that bought a 2,079m2 Banyo tenancy at to their nearby clients as well as those in adjacent
22 Crockford Street. As might be expected, the key industrial areas of Narangba, North Lakes and Lawnton.
factors in these deals are yield, quality of property, While activity in Brendale historically involved smaller
quality of tenant and favourable terms. There are to medium users, it has increasingly provided itself as a
investors with cash but are only looking at optimum hub for the very large, a primary example being ALDI’s
returns. 40ha distribution centre.
Leasing enquiry has proven sporadic across all size Jack van Riet’s Pine Rivers Office Park, which has seen
ranges largely due to the lack of stock and low the sale of five of its eight tenancies in Building 3,
levels of confidence. Following the recent take up of with the remaining under contract at sizes from 64m2
freestanding properties in the 1,300m2-1,900m2 size to 170m2. In addition, the 1,102m2 Building 4 was
range, there is now a very short supply of freestanding purchased, while two tenancies out of three in Building
buildings in this size. Similarly, there are very few 6 are under contract and leased. The latter were 199m2
freestanding spaces over 4,000m2 currently available, and 233m2, leaving a 727m2 space still on the market,
with tenants forced to look further afield. Rental rates, for lease or sale as an investment.
both asking and achieved, have remained static,
with Land Tax being recovered in nearly all leases Similarly, Building 5, which comprises 1,168m2 of A-
negotiated by King & Co. It should be noted that when Grade corporate style office over two levels, features
Land Tax is recoverable as part of the outgoings, it fantastic exposure, outstanding car parking and great
softens the net rental rate that is achieved as all astute natural light...a must see for owner/occupiers and
tenants will consider gross rent payable when looking investors alike.
for a new premises. Meanwhile, there will remain some vacant land for
With the recent completion of the M7 AirportLink development in the New Base Enterprise Park, at sizes
tunnel, these northern industrial areas will become even ranging from 2,000m2+ to 3,000m2+, as well as some
more highly sought after due to reduced travel times acre blocks here and there...parcels that will, of course,
which are provided by exit/on ramps at Nudgee Road, see no construction until the numbers add up.
Nundah; Sandgate Road, Clayfield and Gympie Road, Northwest precinct including Newmarket,
Lutwyche. Whether this trend will continue once the toll Windsor, Stafford & Kelvin Grove
fare is implemented, and indeed increased to circa $5,
remains to be seen.
Outer North Brendale
AT A G L A N C E
AT A G LANCE
Newmarket, with its tightly held nature, saw many
more leases than sales. An example of the former
Brendale, which was once considered “too far away” includes the $210/m2 paid for a 282m2 unit at 4/8
from the CBD to be regarded as a serious option, Finsbury Street. As to the latter, there was the purchase
has finally come into its own. In fact what was once of a 500m2 office at 40 Finsbury Street, while a receiver
saw the takeup of a development property at 24
Finsbury Street. Meanwhile, a freestanding 600m2
Southside
office/warehouse at 22 Finsbury Street remains the only Western Corridor including Carole Park, Darra,
larger option in the area. Heathwood, Richlands, Seventeen Mile Rocks,
Leasing activity in Windsor, while not particularly Sumner Park & Wacol
strong, outpaced sales. An example of the former
was the takeup of a 280m2 industrial unit at 2/84
Newmarket Road, for $160/m2, while some office space
was rented at Lyons Terrace and Lutwyche Road.
AT A G L A N C E
Stafford has seen a bit of activity since the first of the
year, most of it on the leasing side of things due to
its sales stock remaining very tightly held. Examples
include the rental of two office/warehouse units in a
complex at 87 Webster Road.
The same sales to leasing trend can be seen in Kelvin
Grove, though a 251m2 unit at 62 Bishop Street sold for
$2,629/m2. A unit complex going up at Bishop Street is
expected to bring interest from purchasers and tenants
alike, as it will provide much needed space in popular
sizes from 186m2 to 629m2.
As to the next six months: while this precinct should
continue to see rate and price stability, it’s also
expected to enjoy a significant increase in demand
because of the impact of the M7 AirPort Link.
LIFTING SERVICE
TO A NEW DIMENSION
While sales and leasing enquiries in the Western
Corridor have generally been down since the end of
the financial year, this trend is being (and will be) offset
by the continuing benefits of upgrades to the Ipswich
Motorway along with an increase in confidence.
As to the specific suburbs that make up this precinct:
Sales activity in Carole Park has been slight, a situation
soon to be enhanced by an increasing number of
vendors willing to meet the market. This is particularly
so in the Government owned Synergy Park, where
land for private developers, ranging from 4,000m2 to
16,000m2, can be bought at very competitive prices.
Meanwhile, a few leasing transactions occurred,
including the $150,600pa paid for a 2,008m2 office/
warehouse at 10 Argon Street; the 103,320pa that
rented an 861m2 space at 74 Mica Street, while
$153,000pa took up a 1,090m2 freestander at 200 was quite slow, in part because it’s an older industrial
Cobalt Street. Prospective tenants will find a shortage area. For example, of the four small units at 11 Forge
of existing buildings over 3,000m2, a lack, it must be Close only one was taken up. The next six months
added, found in the whole Corridor. Spaces for lease should be much of the same, with many prospective
include a 1,559m2 unit at 2/140 Mica Street, which can purchasers still choosing to look at Seventeen Mile
be had for only $89/m2, while a 2,800m2 freestander at Rocks. On the other hand, this suburb has become
146 Mica Street will be on the market later in the year attractive to entry level investors.
for an expected $125/m2. Leasing activity, while minimal, did see the takeup of a
After sitting vacant for some time, a few smaller units 2,274m2 space at Part 12 Forge Close, leaving a good
in a Darra development were sold for more realistic range of small to medium units available, some with
prices once their owner realised he couldn’t aim very attractive deals to be had..
for amounts paid at the top of the market, in 2007- Wacol saw six 1.6ha lots of Future Industry land come
2008. One example is the $1.3 million achieved for a onto the market but little was bought and developed.
freestander at 20 Acanthus Street. Exceptions include the 20,000m2 Hitachi Transport
The next six months will see a few properties brought building at Tile Street, a commitment which should
onto the market, some especially attractive to investors. encourage other large firms to take the plunge nearby,
As to leasing, a representative deal was the $40,000pa while on Viking Drive, Dexus is constructing a 5,800m2
paid for a 352m2 unit at 1/12 Sudbury Street. freestander along with a space of 12,220m2. Both were
Heathwood’s sales market saw only a little movement originally to be D & Cs but are now being offered on
due, in large part, to its tightly held nature, particularly spec. They should be available later in the year...a very
on Stradbroke Street, where owners of larger investment positive sign.
properties tend to hold onto them while waiting for The next six months will see more Future Industry land
higher prices. Rental stock here is drying up, with only developed, still leaving plenty of allotments along
five properties available, ranging between 610m2 and Coulson and Tile Streets, mostly around 4 acres but
3,150m2. open to amalgamation. Also during this period, the
During the last six months many properties in ex-Waco Kwikform building, a 2,950m2 space on 9,279m2
Richlands came onto the market but haven’t sold of land, will become available; Dexus is developing
because their prices were a bit too dear. On a more the new Nissan facility on Viking Drive, and the Primo
positive note, the near future should see the availability building is nearing completion.
of hard to find smaller investment stock, which should Meanwhile, redevelopment of the ex-Army barracks
be taken up quickly due to pent up demand and into a $1.5 billion business park is expected to start
cashed up buyers. this year and provide additional office/industrial/retail
One of the most significant leasing deals in this suburb space totaling 44ha GFA.
was the $698,418pa being paid for a 5,061m2 office/ Logan Motorway Corridor comprising Beenleigh,
warehouse at 24 Westlink Place. Other transactions Loganholme, Meadowbrook & Berrinba
include the $150,200 pa paid for an 1,800m2 space at
245 Orchard Road, while $56,160 pa was achieved for a
624m2 unit at 1/339 Archerfield Road. In the meantime,
Dexus and Australand are leading the revival of spec
AT A G L A N C E
building, the latter via a 15,000m2 space at Flint Street.
While Seventeen Mile Rocks has seen the takeup
of all freestanders and all but a few units in the
Bluestone Circuit development, around 10 blocks of
land remain unsold. The next six months should see
developers put up buildings, particularly IDG, which
already has a 1,600m2 freestander underway on just
under an acre at 17 Bluestone Circuit.
Although leasing stock is starting to dry up in the
Metrowest estate some older offerings between 178m2
and 1,1961m2 are still available in the suburb’s more
long established parts.
During the last six months Sumner Park’s sales activity
Spaces along the Logan Motorway Corridor remain in
high demand from potential tenants, leading to a rapidly
diminishing supply of stock.
Sales activity continues to be a mixed bag, with some
suburbs not having many deals, while Loganholme has
enjoyed an upward spike. Like its leasing counterpart, all
suffer from a looming shortage of stock.
More specifically:
Beenleigh saw a 300m2 freestander on 2,000m2
of Light/Medium zoned land recently come under
contract, while a couple of investments are on the
market with a yield of around 8%.
Loganholme, at the strategically located crossroads
of the M1 and Logan Motorways, is, as always, quite
popular, having recently enjoyed a burst of sales
activity despite the above noted scarcity...a situation
made even tighter by the purchase of a couple of AIR CONDITIONING
medium sized freestanders at Chetwyn Street, while
a 975m2 office/warehouse is under offer at 3-7 Henry SALES, INSTALLATION
Street.
The next six months, however, is to see the completion
& PREVENTATIVE
of a quality 1,600m2 freestander at Burchill Street. This
period should also continue to have high demand and
MAINTENANCE
stable prices and rates, with potential purchasers and The air that you, your employees and or
tenants relying on existing supply since little else is to
your customers breathe is an issue of
be built, save for those mentioned above.
health and responsibility.
Popular Meadowbrook saw a number of leasing
transactions, one a 2,019m2 freestander at 21 Nealdon The quality of the conditioned air in your
Drive, which, at $108/m2 for a 20 year old building, facility directly effects health, productivity
offered a good representation of market rates. Another
was a modern freestander at 80 Nestor Drive, which and absenteeism.
rented for $100/m2. In the meantime, a put and call
option is in place at 60 Nealdon Drive, achieving $2.175 THE ADVANTAGES OF
million. REGULAR SERVICING
Berrinba saw limited sales activity despite some Keeps running cost to a minimum.
good available buildings, for example a 1,600m2 Complies with relevant tenancy/lease criteria.
property (and the only one left) in the IDG Estate on
Prospect Place. One that did get picked up was a
Minimises the inconvenience and annoyance
306m2 investment with a high office component a 3/50 of system downtime.
Kelliher Street, on a yield of 9%.
Once Council approval is given, Toll can be expected
to start construction of a 43,663m2 depot for its NQX with the staff & clients of King & Co – serving the
division on 134,317m2 of land, with a completion date Heating Ventilation & Air Conditioning requirements
early next year. In addition, Stoddart Manufacturing
is putting up a 25,000m2 distribution centre on a
50,000m2 parcel, while ATCO is amalgamating three
facilities it operates elsewhere into a 40,000m2 Unit 12, 14 Hopper Avenue, Ormeau Qld 4208
structure on 97,000m2 of land. The Stoddart project is
also expected to come on line during the early part of
Ph: (07) 5549 0999
2013, while ATCO’s will be ready early 2014. www.thompsoncooling.com.au
(See page 6 for more detail) Email: info@thompsoncooling.com.au
Crestmead, Browns Plains & Parkinson The majority of purchases in the Yatala Enterprise
Area (YEA) was for land, deals that included a 4.04
ha parcel at 167 Queens Hill Road East, which sold for
$1.8 million, while a 2,500m2 allotment at Union Circuit
was purchased at $236/m2. In addition, a new 1,500m2
AT A G L A N C E
freestander at Gassman Drive is under contract.
Because of developer reluctance to build during the
past few years, there will be a limited stock available for
the near future. Hopefully this situation will change in
line with the growing build up of demand unable to be
satisfied.
Leasing enquiry has remained constant throughout the
YEA, for spaces of all sizes. Whereas tenants have been
seeking more incentives from landlords, these offerings
will surely dry up as stock disappears. Meanwhile,
there has been a large upswing in Design & Construct
requirements in every part of this precinct as the result of
Crestmead had a relatively limited number of
diminishing available space. Developers do have money
purchases, but what did occur included the $235/m2
to build on spec but want the security of having a strong
achieved for a 2.26 ha parcel on Magnesium Drive. This
tenant precommited long term.
site was on the market for some time until bought by a
private investor who has it earmarked for Tiling Timber. South M1 Corridor including Slacks Creek,
Recently on the market are 19 lots of Light and Medium Underwood, Woodridge & Springwood
Industry land at Calcium Court in sizes from 2,000m2 to
1.02 ha, with prices under review. As to leasing, activity
continues to be slow but stable.
Sales activity in Browns Plains was slow, while leasing
AT A G L A N C E
has been a bit stronger, trends that are expected to
continue for the next six months.
Those needing to lease space in Parkinson should
take a look at two units, totaling 2,676m2 at 1 and 2/90
Southlink Street, in the prestigious Southlink Industrial
Estate. They can be rented individually or as one, a
configuration made possible by internal joining roller
doors. Meanwhile, a 2,270m2 space at 100 Southlink
Street was taken up for $272,400pa on very long terms.
Yatala Enterprise Area (YEA) comprising Yatala,
Ormeau & Stapylton
The Slacks Creek, Underwood, Woodridge,
Springwood precinct of the South M1 Corridor only
contains secondary stock, as no new land has come
on line for over a decade. What does exist includes
AT A G L A N C E
quite a few unit options in the 200m2 to 800m2 range,
with prices and rates dependent on quality. Need
anything larger and you’ll have to look at the YEA or
along the Logan Motorway Corridor. While in high
demand, freestanders are hard to find and when they
do become available are snapped up.
Meanwhile, sales activity has been solid in the smaller
unit market, while demand has been strong for space
above 500m2, unfortunately with only a limited supply.
Archerfield, Moorooka, Rocklea, Yeerongpilly demand remained low and stock was in short supply.
& Acacia Ridge (Achievement, Success & It’s hoped things will pick up a bit over the next six
Colebard Streets) months, possibly the result of spinoff from the new
Motorama facility on Ipswich Road.
Leasing activity has been quite good, witness the
takeup of some small units along Michelin Street. Being
a near city fringe suburb, there should be a strong run
AT A G L A N C E
of rental enquiry from now until Christmas and not
just motor trade related. Those looking will find an
assortment of small to medium size spaces at the same
rates as earlier in the year.
While Rocklea’s sales market was still slightly effected
by the flood stigma, in general potential purchasers
started to put that issue behind them. Indeed, so
much so there was a spike in activity, albeit some of
it, ironically, coming from astute buyers picking up
once “problematic” stock at significantly reduced
prices. For example, four buildings on Randolph
Street were bought for as much as 30% less then their
previous valuation. It should be noted that these sat
derelict before being refurbished and should be good
investments if held long term.
Although transport users are still this suburb’s mainstay,
there’s neither much stock nor enquiry for relevantly
sized properties. And what is on the market has forced
owners to reduce prices if they need to sell. The next
six months should see the beginnings of a steady
recovery.
The last six months saw some fantastic properties
being leased, however there’s still some resistance
for spaces that were once flooded. That being said,
most prospective tenants believe this was a one off
As to the sales and leasing market in Archerfield, event, largely due to recent changes in dam protocols.
Moorooka, Rocklea, Yeerongpilly and the pocket of Representative rentals include spaces from 100m2 to
Acacia Ridge comprising Achievement, Success and 8,000m2, at rates between $90/m2 to $110/m2. It’s
Colebard Streets: expected these amounts will only increase by the CPI
Archerfield saw some manufacturing related from now until the end of the year.
property become available for sale, in large part due Until recently Yeerongpilly was an above standard
to problems in that sector of the economy. This has priced area that received the overflow of light
resulted in a slight lowering of prices as vendors look manufacturers forced to relocate from other parts of
to meet the market, sometimes via pressure from the the city fringe due to residential encroachment. With
banks. The next six months will be similar, making it reduction of these external pressures, thanks to the
easier for potential purchasers to consider their options. GFC, demand eased as did prices. Fortunately, as
An example of this “trend” took place at 30 Rodwell these asking amounts stabilise, it’s expected that sales
Street, where a building was bought for $1.5 million, activity will slowly but surely increase.
then resold for $1.1 million after having been on the
market for a couple of years. Meanwhile, there were some standout leasing deals
combined with good units coming available, mainly
During the last six months there’s been an “uptick” in smaller spaces along Curzon, Walker and Varley Streets
the number of spaces being leased, some after sitting as well as Tennyson Memorial Drive. Its strategic
for quite awhile. This activity will continue to be positive location between Moorooka and Chelmer, as well as
as quality tenants find they have a good selection of proximity to the city fringe and CBD, means this leafy
stock available at more affordable rates. pocket will continue to attract tenants willing to pay
Moorooka saw little change in sales activity, in that premium rates.
“…the completion of Port
Connect is expected to
The older pocket of Acacia Ridge, generally comprising
have a significantly positive
Achievement, Success and Colebard Streets, remains
fairly tightly held, leaving vacant stock ranging 900m2 to
impact on demand and,
2,500m2 in particularly short supply...a situation offset by
minimal demand and a weak market. potentially rates…”
On the other hand, the leasing market has been
exceptionally good, both in terms of deals done and, mainly for smaller units. Little will change during the
finally, increased ability after a period of shortage. next six months apart from stock starting to dry up
Examples of the latter include a 6,000m2+ warehouse because no smaller units were built over the last three
at 42 Colebard Street East, while a 1,500m2 building at years.
42 Colebard Street West can be rented (or purchased). During the last half year Larapinta became the “flavour
Rates over the last six months have been stable and of the month” due to the fact that a number of major
should continue to be so during the next six. companies purchased there. Land is still under what
Coopers Plains, Larapinta, Salisbury it was originally marketed for when subdivisions were
& Acacia Ridge created pre 2007, meaning now is a good opportunity
to buy at a very good price. For example, whereas now
parcels can be found between $250/m2 and $300/m2,
previously vendors were only achieving $300/m2 on
average. Meanwhile, representative leasing activity saw
a 782m2 unit taken up for $86,020pa, or $110/m2, at 2/59
AT A G L A N C E
Distribution Street.
Salisbury, which had a bit more sales and leasing
activity due to a lack of stock in other areas, is seeing
its own shortage because of no new development.
That being said, many growing companies, which
once would have overlooked this suburb’s older style
properties, are now finding them a reasonable and
less costly alternative. A case in point was a 1,650m2
secondary space at 8/268 Evans Road, which was taken
up for $148,500pa on a longer term, at $90/m2.
In the more modern part of Acacia Ridge, at and
around Bradman Street and Beaudesert Road, there’s
currently a marked lack of anything for sale between
1,000m2 and 2,000m2, a situation made worse by the
purchase of a couple of properties in that size range.
The next six months will eventually see most of its
remaining stock dry up, leading to to a further firming of
prices, even slight increases.
Significant leasing deals include the $100,000pa or
$98/m2, paid for a 1,079m2 front space at L1/163-174
Ingram Road; the $84,480pa, or $110/m2, that rented
The precinct that comprises Coopers Plains, Larapinta, a 766m2 unit at 1/68 Murdoch Circuit; the $101,640pa,
Salisbury and parts of Acacia Ridge saw a healthy dose or $105/m2, paid for an office/warehouse at B1/41
of sales activity at competitive prices, while its leasing Bellrick Street, while an undisclosed amount picked up
counterpart was stable in that as soon as a business a 5,111m2 property at the front of 38 Peterkin Road.
vacated, this space was taken up, generally at rates
from $110/m2 to $120/m2 if A-Grade and between $85/ Eastside
m2 and $105/m2 for B Grade. Both sectors suffer from
a shortage of stock and nothing new is expected to Eastern Corridor including Bulimba,
come on line at any time in the near future apart from Morningside, Murarrie, Hemmant, Tingalpa,
some possible spec building in southern areas. Lytton, Wynnum & Mansfield
Coopers Plains enjoyed reasonable sales activity,
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occupiers, many of whom should be willing to pay premium
AT A G L A N C E
prices to locate here. Meanwhile, leasing deals have been
few and far between due to a minimal amount of stock.
Over the last half year, the sale of investment units
constituted the majority of activity in Morningside’s
industrial market, one example being the 9% yield achieved
for a tenanted property on Breene Place. The next six
months should see the availability of a few smaller units
along this suburb’s bread and butter streets of Riverside
Place and Steele Place, albeit at higher yields, indicating
a reduction in prices. In other words,while purchasers are
pressing for bargains, it’s becoming necessary for vendors
to meet the market.
As to this suburb’s leasing market it, once again, is suffering
from a lack of industrial stock, but what does exist includes
a 812m2 freestander at 48 Taylor Street; a 661m2 unit at
2/35 Steele Place as well a few small office/warehouses
scattered about. Most of these are expected to be taken
up during the next six months, making this shortage
even more critical. While rates have remained stable, it’s
expected they will rise once confidence returns to the
market, but primarily for smaller units.
Murarrie has seen little sales activity, with most deals
taking place in the Riverside Place complex, one to an
Bulimba saw the sale of a number of vacant GI sites, a investor, the other a vacant unit of around 200m2. It’s
case in point being the purchase of four adjacent blocks expected a few more units will be coming onto the market
on Barramul Street...deals that highlight this tightly during the rest of the year. Owners of standard office/
held suburb’s lack of stock. During the next six months, warehouses are achieving prices between $2,300/m2 and
however, some industrial/commercial properties should $2,400/m2.
come onto the market in sizes from 400m2 to 1,600m2.
The smaller end of this assortment will be the industrial Those looking to lease will find this suburb offers the
properties that are of particular interest to owner/ greatest spread of office and office/warehouse stock in the
Australia TradeCoast, albeit not great in numbers overall. of what’s available are for short term. The next six months
Unfortunately for lessors, but a boon to prospective should see stagnant enquiry due to weak demand, but,
tenants, large spaces with with a very high office again, as soon as confidence picks up you’ll start to find
component are expected to be in relative abundance reduced incentives combined with rate rises.
partly due to the State Government’s job reductions. The Tingalpa has seen limited sales activity, with deals taking
result is that many owners will be increasingly forced to place being small units on Proprietary Street, which were
meet the market, whereas the alternative is to watch their picked up for between $1,800/m2 and $2,000/m2. Another
spaces sit unrented for quite a while. One example of this sale includes the $4.3 million paid for a 3,700m2 investment
rate softness is a quality space at 4/57 Miller Street, which property on 6,300m2 of land on Ingleston Road.
was originally listed at $250/m2 but is now going for $195/
m2. Meanwhile, hard to find office/warehouses with a high Meanwhile, there’s been some properties for sale on
proportion of warehouse have been and will be taken up. Container and Proprietary Streets, albeit at prices a bit too
high for them to be readily taken up.
Leasing transactions over the last six months include
Edward Dunlop’s take-up of a 7,500m2 space at the There have been a few properties of good value rented
corner of Borthwick Avenue and Archimedes Place; at, for example, 39 Propriety Street, which includes the
approximately $95/m2 paid for a 1,367m2 refurbished
freestander. Meanwhile, a couple of good units of around
700m2-800m2,and ranging from $120/m2 to $135/m2, can
be found at 27 and 31 Millenium Place, while, nearby, a
continue to attract tenants couple of new developments are offering spaces with high
class medium sized office/warehouse for $138/m2. Also
nearby, one can find two 491m2 units going for $140/m2.
Although there continues to be little demand, they should
go quickly as soon as confidence picks up.
just over 1,000m2 of space at 31 Archimedes Place; an Lytton has seen only a small amount of sales activity,
ex-Reece Plumbing space of just over 2,000m2 at 15 though the completion of Port Connect is expected
Terrace Place, while tenants in part of 43 Metroplex to have a significantly positive impact on demand and,
Avenue just renewed their option, leaving 1,783m2 of high potentially rates, particularly for land on Export Street and
quality ground floor A-Grade office still available at $320/ thereabouts. Transactions that have occurred over the last
m2 gross pa plus GST, which is of very good value. six months in include a property on 73 Export Street and
In addition, the development at 93 Rivergate Place, part of a unit on Trade Street. Prices during this period
saw most of its units slowly but surely taken up since have mainly levelled off and are expected to remain the
the beginning of the year, while three vacancies at 333 same through the rest of the year.
Queensport Road, which came on line at the same time Although Wynnum has only a minimal number of industrial
at Rivergate Place, are expected to be taken up during properties for sale and, consequently, saw no deals, there
the next six months due to their high quality finish. As are commercial properties available, which are in high
hinted at above, the next six months will see even more demand and ready to be purchased..
competition between owners of large spaces with a
Mansfield has seen a great deal of sales activity, with deals
high office component, complete with incentives and/or
including a few units on Secam Street. For those needing
negotiable rates starting at $130/m2, while smaller office/
land there’s some slowly moving parcels available between
warehouses will be regularly taken up for around $120/m2.
2,000m2 and 3,000m2 as owners try to meet the market.
Hemmant saw some sales activity, a standout deal being Despite this, the suburbs’s popularity means the asking
for the 12,600m2 One Steel tenanted building at 46-76 amount of $350/m2 to $400/m2 is at least $50/m2 more
Gosport Street, probably the most substantial transaction than in other areas.
in the area for some time. Meanwhile, a large parcel of FI
While always tightly held, Mansfield does have a few good
land in Lytton Road is on the market, while about 9,000m2
properties for lease, albeit without a large amount of
is still available at Aquarium Street and expected to be
demand. That being said, its expected 80% of the vacant
bought soon for around $300/m2.
stock here will be taken up during the next six months.
This suburb remains lacking in large properties for lease,
Stock on the market, or soon to be, includes five properties
with one of the few over 7,000m2 being at 45 Aquarium
at 140 Wecker Road; a 377m2 tenancy at Dividend Street;
Avenue. Similarly, there’s only some spaces available
a couple of of good 800m2 freestanders at Secam and
between 2,000m2 and 3,000m2, a handful in the 1,000m2
Devlan Streets, while a few smaller spaces and a couple of
to 1,500m2 range, while there’s not many small vacancies.
freestanders are ready for occupancy elsewhere.
Although there’s significant need for larger spaces, most
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