Google drone business drives $100m investment in Logan

Commercial interest in the growing southeast Queensland region of Logan is on the rise.

The Berrinba Industrial estate in Logan.

Commercial interest in the growing southeast Queensland region of Logan is on the rise with multinationals, led by Google parent Alphabet, and local companies committing more than $100 million to the area over the past year.

Almost 170,000sq m of commercial property will be tenanted in the region by the end of next year, with businesses ranging from the international tech giant to local hardware brands taking advantage of the City of Logan’s location between the Gold Coast, Brisbane and Ipswich.

Much attention has been focused on the Berrinba Industrial Area. Independent hardware chain Mitre 10 recently built a $50m warehouse spanning 27,000sq m, which is expected to create 110 jobs.

Garage storage company Pinnacle Hardware has also taken up residence with a 14,000sq m distribution centre valued at $22m.

But most excitement surrounds global tech giant Alphabet — the parent company of Google — that has committed to 15,000sq m to launch the Australian arm of its autonomous drone delivery service, Wing. While no launch date has been set, three local businesses have signed on to the service. Alphabet will also run the operation in Canberra.

Logan City Council’s director of strategy and sustainability, David Hansen, said confidence in the region was high.

“This investment is a great example of the increased business confidence we are seeing in Logan as an increasing number of multinational companies now call the City of Logan home,” he said.

“City of Logan is in a premium location near the M1, has great access to major transport nodes and Brisbane International Airport and has plenty of open space.”

National coffee franchiser Zarraffa’s has recently relocated from the Gold Coast to Eagleby. A $20m investment in a new open-plan head office, roastery and expanded warehousing, packaging and distribution hub spanning 18,000sq m is in the works.

It will stand alongside Zarraffa’s founder and managing director Kenton Campbell’s $50m Distillery Road Market food precinct, set to open before 2021.

“The alignment and relocation of facilities for Zarraffa’s and the launch of Kiwanda Cafe also signifies the start of an incredible destination opportunity within our new home at Distillery Road Market,” Mr Campbell said.

Recent biannual economic analysis of the region showed a 3.9 per cent GRP increase for 2017-18 of $11.77 billion. Last financial year, the number of businesses based in Logan grew by 3.4 per cent to 21,978, while jobs increased 7.8 per cent to 115,575.