The Costco warehouse at the Citiswich business park.
The Costco warehouse at the Citiswich business park.

Construction ramps at Citiswich

MORE than $120 million of new projects are under construction at the Citiswich business park at Ipswich, providing hundreds of new jobs.

Work is underway at Walker Corporation's 350h business park on Costco's $50 million 13,750sq m warehouse which will open early next year, TAE Aerospace's new headquarters and a Queensland Urban Utilities depot.

Citiswich development manager Todd Martindale said new tenants and owner-occupiers were taking advantage of affordable land prices and excellent transport links to the Ipswich Motorway, Cunningham and Warrego highways.

Additionally, Walker Corporation has launched a new project with a development application approved for a 11,795sq m distribution centre.

Construction is expected to start to commence in early 2019. The site on Hoepner Rd opposite Capral Aluminium's Queensland headquarters.

The facility is being offered for lease now at a rental rate from $95-100/sq m.

Knight Frank's Mark Clifford said the industrial occupier market has had a surge in activity over the past 12 months.

"Existing A-grade warehouse and logistics facilities have been leased at fast rate, with close to 50,000sq m of leasing deals completed on existing facilities in just the last two months in the south west of Brisbane," he said.

"A-grade stock in the 5000sqm to 15,000sq m range, with design and construct opportunities estates are well and truly on the radar for tenants. Tenants that would normally prefer to negotiate on existing buildings now look closely at the design and construct opportunities available,:"

Colliers International's Matthew Frazer-Ryan said the ongoing success of Citiswich at Bundamba typifies the growing take up of land supply in greater Brisbane.

"Over the past 12 months to September 2018, the average price for industrial land in Brisbane has risen by 9.2 per cent, while recent supply analysis for immediately available land provides for 3.6 years of available industrial land supply," he said.