2017 has been a positive year for the Yatala Enterprise Region, with elevated sentiment resulting in a strong demand to buy and improving occupancy levels. Private Investors and owner occupiers continue to compete to purchase stock due to the affordable cost of debt; more so however has been the growing number of owner occupiers seeking accommodation for their growing business’ and to shelter from escalating rents.
This has had some dampening effect on rental growth in the last year after a number of periods of sizeable increases in rents. As a result, average rents have seen limited movement over the last year albeit still recording a vast range of values.
There is currently 151,513sqm of industrial supply in the development pipeline across the Yatala region, this represents 16 projects. There are three small projects currently at under construction phase including the Global Footcare warehouse in Coomera of 1,753sqm and a development of two industrial units on Darlington Drive, Yatala totalling 3,175sqm which is due for completion shortly. There are currently ten projects with DA Approval in the Yatala region, these account for close to 100,000sqm, despite these projects having approval, many have been deferred with approximately only 20,000sqm which look firm for completion over the next 12 months. Even further down the development pipeline are three projects which are still in planning with DA submitted, these projects represents 42,919sqm of stock, which include the Pearson Road manufacturing facility also in Yatala which is expected to be approximately 28,000sqm in size with an estimated completion date of 3Q 2019. This market continues to see a limited level of speculative supply being completed which has aided keeping vacancies down, the continuation of demand led completions will ensure growth remains in this market.