We estimate an above average 440,000 square metres of new supply was completed across the Brisbane metropolitan area during the 2022 financial year, across circa 29 projects (greater than 3,000 square metres in size). Of the projects completed over the last financial year, the Southern and Western Corridors continued to dominate activity. The volume of completions represented a substantial step up from the 320,000 square metres completed in calendar 2021. Based on projects under construction and approvals data, around 600,000 square metres of new builds are due for completion metro wide by the end of calendar 2022. The 2023 calendar year is expected to be another very strong year for supply, surpassing the mark set this year. Activity will be supported by large pre-committed spaces including Winning Appliance (circa 46,000 square metres at Wacol), Bapcor Limited (45,000 square metres at Redbank), a 25,000 square metres facility partially committed to Daikin at Murrarrie and a 23,000 square metres warehouse for Burndy Cable Support at Acacia Ridge. As elsewhere, there is the potential for project completions to slip due to capacity constraints across the construction industry. Most of the developments completed in the 2022 financial year were underpinned by tenant precommitment. However, a notable proportion commenced on a speculative basis. Major developers including GPT, Goodman, and ESR rolled out speculative developments and on the whole were successful in securing tenant requirements that could not wait for a pre-lease to be delivered. Approvals data over financial year 2022 showed circa $1.16 billion of industrial projects was approved, heavily skewed towards warehouses. This represents a 48 per cent increase on the figure for the 2021 financial year. Around 33 per cent of warehouse approvals over the 12 months to June 2022 are in Ipswich, with 35 per cent captured in Brisbane’s southern regions. We expect a mixture of pre-leases and spec construction to continue as the major developers look to capture requirements with both longer and shorter turnaround times. Without servicing and rezoning delays, there is plenty of planned industrial land to meet our supply forecasts. Supply Supply outlook 18 Brisbane industrial demand and new supply Industrial Market Monitor | 2nd Half 2022
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