Gold Coast Warehouse and Storage Demand Soars
July 19 2023
Demand for warehouse and storage facilities is escalating on the Gold Coast, triggered by high-density living and a land deficit in central areas.
Industrial property development, a viable option for investors given lower entry points and increasing building costs, is thriving.
“Historically, retail and commercial sectors have had higher vacancy rates and higher holding costs which make storage and warehouse assets an attractive low-risk investment option, particularly for risk-averse or first-time commercial investors.”
This shift is evident on the Gold Coast, where a local supply shortage exists.
“More businesses no longer require a shopfront or exposure, opting for the versatility of warehouses and storage facilities. This trend is significantly driven by the shift towards online operations,” Adam says.
This trend is palpable in locales like Burleigh Heads, where the lower entry barrier and little to no fit-out costs make industrial facilities more appealing.
Moreover, the increasing preference for self-managed super funds (SMSFs) is drawing new investors into the market, further diversifying investment portfolios.
The Gold Coast’s shift to an ‘apartment lifestyle’ amplifies the need for additional storage, particularly for downsizers and retirees moving into apartments.
A key example of this shift is ‘The Sanctuary‘ an architecturally sophisticated complex in Southport that is entering its final stage of release.
“One buyer purchased a unit to create a dedicated games room, complete with a wine cellar, a yoga room, and a parking space for prized cars,” Adam adds.
Population forecasts predict a 43.4 per cent increase in southeast Queensland residents by 2041, signalling an inevitable surge in demand for business and surplus storage.
The Gold Coast’s warehouse and storage facility market shows robust growth potential, fuelled by lifestyle changes, a booming population, and a diverse range of investment opportunities.
Reach out to Kollosche Commercial for opportunities and advice across all sectors of the commercial property market.