- ESR Sherbrooke Industrial Estate has secured 12,000sqm in lease commitments
- Plans were revised following strong demand for relatively smaller spaces
- Tenants seeking facilities that improve warehouse efficiency
The first-ever speculative industrial Queensland development has been fully leased prior to practical completion.
ESR Sherbrooke Industrial Estate in Willawong has recorded 12,000sqm in lease commitments.
Initially, the 430 Sherbrooke Road site was built to accommodate two major tenants, however, plans were revised following strong demand from tenants wanting 3,000sqm to 5,000sqm spaces.
Building products supplier Bremick, Davey Water and Speed Panel have signed for leases in the vicinity of three to seven years. Practical completion is expected to occur late next month.
Rentals have not been disclosed; however, current rental rates in Willawong range between $115 to $125sqm net.
“The exponential growth of the Queensland industrial market has pushed demand into emerging industrial precincts such as Willawong, so we were quite comfortable undertaking the development speculatively,” said ESR Queensland General Manager Development, Craig Robertson.
“This confidence has been vindicated with the quick uptake of space by Bremick, Davey Water and Speed Panel.”
“ESR Australia welcomes our new customers and we look forward to working with each throughout the construction period to ensure the facilities truly cater to their requirements.”
Automation and scale attracting tenants
CBRE’s Jack Hardy, Peter Turnbull and Michael Richardson all secured the tenants, with Mr Hardy noting demand has been driven to occupiers focus on improving efficiency through automation and scale.
“..and businesses are looking to hold more stock onsite, which is driving demand for greater warehouse heights to accommodate increased future stock levels,” Mr Hardy added.
“This has underpinned considerable interest in Sherbrooke Industrial Estate, given its quality construction, large internal warehouse heights – providing the ability to scale racking higher – and the provision of corporate office accommodation for staff.”
The estate has development application approval for 24/7 access along with provision for B-Double trucks.