Logan growth corridor reclaims its commercial sector hotspot title

Yatala is know for its pies but it is also growing a reputation for tasty commercial property deals.

Rents and commercial property sales are returning to pre-COVID levels.

A southside growth corridor, between the Gold Coast and Brisbane, is reclaiming its title as the state’s number one hotspot destination for logistic-oriented companies.

Yatala, in the Logan growth corridor, was the place to be for expanding small businesses in 2015-2017.

But it took a dive in 2019, just prior to COVID-19.

Yatala is know for its pie shop and its commercial and industrial estate.

The 3000 hectare Yatala area was formed in 2005 and has been designated as a major development region under the state government’s South East Queensland Regional Plan.

Now, real estate agents are claiming the area, dominated by the suburbs of Yatala, Stapylton and Ormeau, has become the commercial property mecca where landlords are cashing in on rising demand for quality warehouse space close to major arterial roads and motorways.

Demand for commercial leases and properties has risen rapidly since January, putting to bed a two-year period of stagnant growth.

Ray White commercial property agent Angus Page said Yatala was a leader in the sector’s growth.

Ray White commercial property agent Angus Page.

The average capital value for a warehouse in the Yatala Enterprise Area soared 15 per cent to $2075/sqm from $1803/sqm in November 2019, prior to the COVID pandemic.

Mr Page said the average rent had also risen from $117/sqm in the first half of 2020 to $127/sqm.

“The increase in the level of interstate migration to Queensland this year has created new opportunities for small businesses and improved the local economy in Logan and on the Gold Coast,” he said.

“Private investors and owner-occupiers are seeking to take advantage of the current low interest rates which is resulting in a strong demand for smaller, high-quality commercial assets.

“This has driven up capital values and compressed investment yields.”

The leasing market also recorded considerable rises after a marked trend for change in the small businesses sector with many looking to expand, downsize or relocate.

“This has resulted in an increase in the number of lease transactions,” Mr Page said.

“Existing vacant stock absorbed a lot of this pressure in late 2020.

Commercial properties during the pandemic were vacant.

“However, there is a shortage in the supply of these smaller quality assets available for lease which has driven up rents for these assets in Logan and on the Gold Coast.”

Mr Page said a property near the Yatala area at 16A/38 Eastern Service Rd, Stapylton, went under contract for the asking rent in less than a week after being advertised.

A commercial lease for a property at 2A/55 Grand Plaza Drive, Browns Plains also proved the upward trend for rents in the area.

The site had been vacant for nearly a year during the height of the COVID pandemic before a long-term tenancy was secured.

The tenant is a well-known employment agency with multiple sites across the country.

It was the seventh property Ray White had leased in the Browns Plains area in the past year.