Standalone Industrial the Standout Performer

JUST SOLD – 39 Alta Road, Caboolture

A Caboolture investor’s gamble on a brand new vacant warehouse paid off in 48 hours, thanks to RWC Northern Corridor Group’s Chris Massie and Troy Sturgess.

The 1,300m2 property at 39 Alta Road in the new Corporate Park East estate is the latest in a string of standalone buildings that have leased and sold in the last quarter. The new tenant, Sinaboom Intelligent Equipment, secured the property on a five-year term at $175m2 net.

The new owner, who settled on the property for $3.45 million only days before, had their confidence rewarded with an almost immediate 6.5% return.

“The buyer settled on the Monday, the paint dried on the Tuesday, and we found a tenant on the Wednesday.” Said Troy Sturgess.

Only weeks before, a similar sized property at 59 Evans Drive was leased to the State Government’s Fire Ant eradication team for $177m2 and quickly sold to an investor for a 5.9% yield.

“The new residential tenant protection legislations are prompting a stream of investors to shift to commercial and we expect that trend to continue.” Observed RWC’s senior analyst, Ashley Rees. “Competition in the industrial market is obviously strong, but investors that take the time to look at replacement costs over immediate yield are still finding some gems.”

After almost a decade of stagnant rent and capital growth, the Northern Corridor industrial market has more than made up for it in recent years. While sale rates in Caboolture’s latest estate are now averaging north of $3,000m2, it remains a cheaper alternative when compared to other North Brisbane suburbs. Like many areas, industrial land prices in Caboolture have surpassed $600m2, more than doubling since 2020.

Chris Massie, Director of RWC Northern Corridor Group, has watched Moreton Bay evolve over the last eighteen years.

“Investors should remember that the sales we see today are based on land rates from two years ago and build prices from a year ago. We know what land and build prices have done since then. The opportunities become easier to spot through this lens.”

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