counsel autumn 2008 issue 30 61 ways - king & co property ... · to find out more about westpac...

61 ways developers can build sustainable industrial estates...and still make lots of moneypage 3

King’sCOUNSEL ISSUE 30

AUtUmN 2008

Queensland’s illusory regional plans

and invisible state development plans

page 32

Huge jumps in transactions and values in 2007… but will they continue in 2008?page 14

Rethinking our cities and townspage 30

How’s the industrial property market faring

in your precinct? back page

Official Newsletter Ofwww.kingco.com.au

To find out more about Westpac Property Finance call David Kelly,

Head of Property Finance Queensland on 0448 119 948 or Shane Craig,

Relationship Director Property Finance on 0448 198 151.

We make it our business to understand yours.With Westpac Business Banking we have Relationship Managers who are property specialists in both development and investment. They know your industry and take the time to listen to you and offer flexible funding packages that satisfy your individual project requirements.

Subject to eligibility criteria. Westpac Banking Corporation ABN 33 007 457 141.GDA23358

© King & Co Property Consultants

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“A sustainable industrial estate incorporates practical and cost effective design, construction and operational practices that significantly reduce or

eliminate its negative impact on the environment and its occupants”

61 ways developers can build sustainable industrial estates...and still make

lots of money: a checklist

IntroductionBy all accounts, unless we, as societies and individuals, act now to

protect the environment when building our cities, the world is

heading into the “perfect storm” of CO2 generated sea rises,

dramatic weather changes, depleted natural resources, waste

overload and spiralling costs when doing business. Australia bears

a particular onus in resolving this problem as we, for example,

consume more water per person than any other OECD nation and

are the planet’s highest per capita emitter of greenhouse gasses,

4x the world’s average. Furthermore, we’re the 5th highest OECD

country in regards to municipal waste per capita.

Closer to home, the energy used in our residential and industrial/

commercial sector (save for transport) accounts for almost 40% of

this country’s greenhouse emissions, while approximately 40% of

our annual consumption of materials and energy goes into

construction. Indeed, the emissions associated with commercial

buildings, alone, are projected to increase 94% by 2010, when

compared to 1990 levels (17% for residential). Meanwhile, it’s

thought that we do our part to match or exceed the global impact

of cement production, which, all by itself, produces 8% of the

world’s CO2 greenhouse gas emissions. Finally, it should be noted

that 60% of Queensland’s energy emissions comes solely from the

business sector, while about 1/5 of this state’s energy consumption

comes just from aluminium production.

Needless to say, this begs the question: what must concerned

industrial (or commercial) estate developers do to take the above

into account during the design and construction of their next

project, and implement it in a way that won’t break them

financially or incur patronising laughs from fellow developers ready

to write them off as “bloody greenies”? The same goes for those

looking to upgrade/retrofit an existing property. One of the

answers, as we see it, is to incorporate what’s become known as

Ecologically Sustainable Development (ESD), particularly as it

applies to the buildings in an estate, whereby the result will be a

minimal environmental “footprint”, while at the same time

lowering construction and lifetime operation costs, as well as

reducing burdens on local infrastructure, especially transport. In

addition, a building so constructed, will provide its occupants with

more comfortable indoor conditions, natural lighting, views to the

outside and healthier indoor air...amenities that will lead to a

happier and, therefore, more productive workforce. Indeed,

increases in the latter can easily total more than a project’s entire

construction cost over the lifetime of the building. Not only that,

an ESD designed building or estate will achieve higher sales/resales

prices, not the least because they tend to come with longer term

and more satisfied tenants.

On that note, a recently published survey says almost half of the

industrial occupiers polled were willing to pay an additional

premium of up to 10% in order to move into a sustainable

building. Similarly, it found that sustainable features encouraged

precommitments to any new development.

For those who have already embarked on this process, our blessing.

If, however, you’re still weighing up the benefits and need to know

more, please look at the checklist below, where we outline 61 ways

an industrial/commercial developer can provide ESD based estates

or buildings. For ease of use they are neatly divided into Community

Planning, Site & Landscape, Waste Reduction & Management,

Concrete & Framing, Roofing & Walls, Windows & Doors,

Plumbing, Electrical, Heating, Cooling, Insulation & Ventilation,

Renewable Solar Power & Energy, Interior Materials, and Learning

& Sharing:

A: Community Planning

Build mixed use developments Mixed use development means buildings that include

more than one function, such as residential apartments

or offices over ground floor retail space, or a hotel integrated with

a shopping centre. Intrinsic to the success of this form is the

provision of public amenities like pedestrian friendly open spaces

and attractive street furnishings. Ideally, the placement of work,

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entertainment and living spaces in close proximity to one another

will dramatically reduce car use and traffic congestion as well as

maintain a high level of capital appreciation and tenant satisfaction,

not just within the mixed use development, but for any other

projects within walking distance.

Cluster buildings to minimise site development costs When designing industrial or commercial estates,

placing the buildings near each other will significantly reduce site

development costs in that access roads can be shorter and shared,

as can the expense of utilities like water, sewerage, electricity, gas

and telecommunications. Clusters also provide for larger open

spaces, therefore more visual amenity.

Re-use a brownfield or previously occupied siteBefore developing new or greenfield areas, consider

former industrial sites first, either with or without buildings. While

the former options may be less expensive at the outset, the latter

are generally closer to major arterials, public transport, as well as

customers...a combination that will usually assure good capital

appreciation. Needless to say, the expense of remediation must be

factored into this decision.

Design for easy pedestrian, bicycle & transit accessBefore selecting a site for a new project, assess the

availability and quality of transit options including train stations,

bus stops, bikeways and walkways, not just the ones that presently

operate but those earmarked for the future. It’s often said that

close proximity to transport nodes can increase a property’s resale

value by at least 20%, as well as provide a more on time and

energetic workforce.

B: Side & Landscape

Design and landscape to create comfortable micro-climates & reduce heat island effects

A “micro-climate” is the sum of the outdoor conditions in a

specific place, e.g. a yard, a parking lot, roof or lawn. A “heat

island effect” is when a city has a higher temperature than

surrounding rural areas, a difference caused by the greater

generation of heat from urban activities (factories, cars, air

conditioners, equipment in buildings etc) and the greater absorption

of solar heat by pavement and roofs as compared to forested or

planted areas.

Landscape design can offset these unwanted heat gains and

reduce air-conditioning costs by minimising the amount of paving

on the site and adding strategically placed shade trees to building

areas that might get too much summer sun. Conversely, ensure

there are no blockages to areas that need all the sun they can get

during the winter.

Optimise building orientation for heat gain, shading, daylighting & natural ventilation

Solar orientation describes the way that a building receives

sunshine, i.e. north facing walls receive strong midday sun; east

and west faces get intense low angled rays in the morning and

afternoon; while the south face is shaded. Sunlight entering a

building brings heat and light, which can be advantageous or, if

not planned for, cause problems. The shape and position of a

building within the context of its site also influences weather and

how prevailing breezes can provide cross ventilation. Good solar

orientation is an excellent opportunity to allow more pleasant,

therefore more productive, indoor environment and substantially

reduce energy use without any increase in project cost.

To optimise this effect it’s important to consider the availability of

sunshine, shade and wind on areas of the site that are set aside

for a building, parking and other areas of use. It also must be

decided which is most important, heating or cooling. For

example, home owners generally want their buildings to gain free

solar heat, while office spaces want to stay cool in the face of

high internal heat gains.

Reduce building footprint: smaller is better If you can achieve the same project goals, be that

space for a certain number of workers or some level of return on

investment, with fewer square metres, you will, of course, provide

the same level of benefit with a smaller financial investment.

Smaller buildings require less of everything that make development

expensive by decreasing costs in relation to materials, labour,

energy, waste generation etc.

Limit site impacts, balance cut & fill, preserve existing vegetation & protect soil during construction

The construction process has many short and long term impacts on

a site that arise from land clearing, excavation and earth moving.

Best management practices prevent undue loss of mature plants,

ground cover and soil during this process.

This means sensitive places must be fenced off from construction

workers and staging areas, including mature trees, established

plant communities and important landforms. Use erosion control

materials such as straw bales and geotextiles on exposed cut

slopes. In addition excavations and final grades should be designed

so that a large quantity of earth is neither imported or exported

from the site. Importantly, include limits on site damage in any

construction contract so that the value of soil and plants is

apparent to the contractor.

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Land

Mar

k W

hite LandMark White provides a

comprehensive range of client focused property valuation, advisory and research services to all sectors of the property market. Our organisation prides itself on its independence, the foundation upon which advice is provided.

Our dedicated team, of 65 valuers nationally are able to offer an extensive range of knowledge and experience across the specialist areas of industrial, retail, commercial, hospitality and residential development property.

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Use native plants that are drought resistant, create habitat for indigenous species, & do not require pesticides for maintenance

Proper selection of plants in a landscaped development can save

the need for irrigation, fertilisers and pesticides as well as provide

numerous environmental benefits. Reliance on irrigation and

pesticides is not only expensive but potentially poisonous.

Some strategies include: grouping plants with similar water needs;

selecting native plants that attract beneficial insects; using perennial

instead of annual plants; replacing lawn areas, which require

intensive chemical maintenance, with a “wild lawn” of ground

covers and wildflowers; using mulch to prevent water loss and

protect plant roots.

Use recycled rubble for backfill drain rock Drain rock is crushed stone placed against a foundation

so that water moving through the soil will not wick into the

concrete, eventually getting inside the building. Using recycled

material reduces virgin material environmental impact. It often can

be sourced from the demolished concrete found on a redevelopment

site, whereby small amounts can be broken into suitable pieces by

hand or machine pulverising. Clean the drain rock and use filter

fabric to exclude all sand sized and smaller particles.

Maximise onsite stormwater management through landscaping & permeable pavement

In typical construction, roofs and large paved areas, especially

parking lots, send rain directly to catch basins and storm drains and

eventually into sewers. Managing stormwater onsite involves

alternative treatments for pavement and water channels, slowing

down water so that it can be filtered and absorbed by plants then

percolate back into groundwater.

While conventionally engineered drainage systems may be very

expensive, alternatives can be less costly as well as retain water for

landscaping. Sending stormwater to drains can flood storm sewers,

causing sewage backups and delivers untreated pollutants from

hard surfaces into, for example, Moreton Bay.

Permeable pavement (concrete that allows water to percolate

through by leaving out fine particles), pavers set in sand with gaps,

and grass, or gravel, stabilisation mats and rings allow stormwater

into soil, reducing peak stormwater flows. Vegetated swales

(shallow trenches) can slow and absorb some stormwater from the

edges of parking lots. They can then lead to drains or to vegetated

percolation basins. On small parcels a “rain garden” can transform

roof runoff into an inexpensive irrigation source.

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Use rainwater harvesting Instead of directing roof or hardstand runoff into

drains, gutters, downspouts and then the sewerage

system, it can be stored in tanks or cisterns for irrigation, toilets/

basins, cleaning, industrial activity, truck washdown or visual

amenity, like fountains.

The whole system should be designed to provide the estate with at

least a six month’s reserve before needing to use Council water. All storage tanks can be put underground to prevent evaporation and to minimise the space they take up. Happily, they’re not all that expensive; with a concrete 45,000 litre tank costing no more than $10,000 installed...a decision that will eventually pay for itself. Meanwhile, if the tanks aren’t inground make sure all downpipes have leaf eaters installed to prevent leaves and other foliage from entering the system. Once either version is in place the only question now is to what extent the estate is bound by water

restrictions. (see King’s Counsel Issue #29 for more detail)

Use water conserving landscape technologies such as drip irrigation, moisture sensors & watering zones

As more and more industrial or commercial estates incorporate high quality landscaping to attract tenants or buyers, so too does water use become more and more intense....and expensive...a situation made even worse by the high level of wastage found in all too many conventional systems.

As an alternative, developers should consider drip irrigation, which supplies water through small perforated underground pipes that get near plant roots, rather than on the surface where it can evaporate. Moisture sensors detect when irrigation is necessary, shutting themselves off when it’s not. Zoning an irrigation systems allows plants of different kinds or in varying amounts of sun to get an appropriate amount of water, instead of applying an equal volume to all areas. Needless to say, the latter are considerably cheaper per litre and may, it is hoped, allow the premises to “side-

step” some water restrictions.

C: Waste Reduction & Management

Reusing or renovating instead of tearing down & rebuildingRenovating an existing building is now so common that

it is rarely recognised as a green strategy. In fact re-use is a quite important source of sustainability because the very fact of renovation extends the service life of many a building’s components, whereas demolition would send them straight to a landfill. Again, renovation is often less expensive of an undertaking, particularly since many older structures were “over built”. There’s also minimal need for

expensive land remediation if a building is simply being recycled.

Deconstruct old buildings for materials reuse/salvage Most buildings are simply demolished when something

new is planned for the site. Deconstruction (or soft demolition) is a more careful process that disassembles a structure so that the

vast majority of material in it can be reused, often for the subsequent project. Meanwhile, whatever is left over or salvaged can be resold by the owner, i.e. wood, stone, brick, metals, wiring,

fixtures or used equipment.

Recycle construction & demolition waste Waste from construction job sites is the single largest

component of material sent to our landfills. Reducing waste,

therefore, not only saves landfill space and creates recycled

alternatives to virgin materials, but also saves money on disposal

charges. To do this effectively it’s important to provide job site

space for separating recyclables or to haul them to an external

materials sorting facility.

Design for durability & eventual reuse Durable buildings contain materials that can withstand

the wear and tear of time and also have floor plans

that provide for various uses over time. Doing this will allow

buildings to be updated or renovated instead of suffering

demolition, making them inherently more valuable.

Indeed, a modest increase in a construction budget can often

double the lifespan of a building, leading to a vast cost saving.

Additional future savings can be obtained if the design allows

orderly reclamation of valuable components such as structural steel

or expensive finishes. These buildings should also be designed so

that systems related to structural framing, mechanical, electrical,

plumbing, finishes and fit out can be maintained and replaced

independently of each other.

Provide adequate space for storing & handling recyclables Provide dedicated space for storing the individual bins

or dumpsters used in holding separated recyclable materials. Make

sure these areas are in convenient locations as well as easily

accessed by occupants, haulers and maintenance staff. Importantly,

the number and size of these containers should reflect the volume

of materials to be recycled.

D: Concrete & Framing

Use flyash in concrete Flyash is a by-product of coal burning power plants

that has binding properties similar to cement and can

be substituted for a large portion of the cement usually used to

make concrete…an important consideration when it’s understood

that cement production, which includes the mining of limestone

and a very intensive burning process, produces 8% of the world’s

CO2 greenhouse gas emissions.

Moreover, substituting flyash, a waste material, for manufactured

cement saves natural resources used in cement production and often

saves money as well. Flyash also makes concrete stronger, more

waterproof and more durable, though it can slow curing time.

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Presently, 14% of coal flyash produced each year is used in cement

and concrete products, and 11% of industrial and agricultural

applications, with some industry bodies trying to push it higher as

an environmental issue. Needless to say, Queensland, with its

almost infinite coal resources would be at the centre of this process

(and probably is).

Use recycled aggregate in non-structural concrete Crushed waste concrete from building and footpath

demolition is often suitable for use as concrete aggregate, i.e. the

gravel sized particles that are held together by the cement and sand

matrix of concrete in place of gravel or crushed rock from quarries.

Substituting a common waste material for virgin materials greatly

reduces the environmental impact of the latter’s mining, processing

and transportation. It also saves landfill space and can significantly

reduce the cost of dumping rubble following demolition. While

recycled aggregate is not appropriate for structural concrete, it can be

used for footpaths, low site walls, topping slabs and retaining walls.

Use prefabricated forms or save & reuse wood form boards Wood form boards hold concrete while it cures from a

semi-liquid to a hard, finished material. By taking some care when

removing wood form boards, they can be reused many times.

Alternately, prefabricated forms, typically made of aluminium, can

be substituted for wood forms.

Saving wood reduces forest loss and, especially, harvesting of old

growth trees. Reuse or substitution also saves material costs.

Meanwhile, prefabricated forms are faster to install and can simply

be rented.

E: Roofing & Walls

Use a Cool Roof When considering a roof for a new building, or one to be

renovated, check out a Cool Roof alternative to more

traditional materials, like uncoated colorbond or metal cladding, as it

can decrease air-conditioning costs of the space below by more than

61% and increase comfort dramatically. This method also prolongs

roof life because there is less degradation from heating/cooling and

UV exposure. Equally, it reduces the “heat island effect” for the

surrounding region (see #5) and optimises waterproofing.

Available in Australia over the last couple decades but not widely used,

Cool Roofs reflect the heat that comes with sunshine and are ideal for

the large flat roofs found on good sized warehouses and shopping

malls. They can be bright white single ply membranes/sheets or paint-

on coatings applied to existing metal roofs, both of which have a

surface reflectivity of at least 70%, and radiate a minimum of 75% of

the solar energy that hits it before being absorbed.

Use a Green or Living Roof Green or Living Roofs have a layer of soil and living

plants on top of root barriers, waterproofing layers

and structural roof decks (usually made of concrete). They range

from a thin soil layer that supports ground cover plants to gardens

that include shrubs and even small trees.

This method reduces heat gains inside the structure below (as with

Cool Roofs) and protects a roof’s waterproofing layers, adding

great durability. They prevent stormwater runoff (see #12) and can

even replace habitat for species that is lost under the footprint of

new construction. A roof garden can also provide a relaxing visual

amenity for customers and employees as well as increase morale,

therefore productivity, amongst the latter, especially those

responsible for upkeep.

It’s important to plan early for a Green Roof because of the

significant impact on the building in that it can change height and

often requires a somewhat stronger structure to carry the soil

weight or heavy trees.

Use Structural Insulated Panels (SIPs) to replace wood framed walls Structural Insulated Panels are closed walls made from

expanded polystyrene foam core adhered inside and outside to

Oriented Strand Board (OSB) or plywood skins. The foam alone has

little strength, but when bonded to OSB or plywood, acts as a

bridge to augment the panels structural capacity. SIPs create a

super insulated building exterior with few air gaps, are fast to

install, very strong and made with relatively low impact material as

compared to dimensional lumber. The use of OSB made from

wood particles from small trees or wood waste also reduces the

use of large trees needed to supply regular framing lumber.

SIPs usually come in modules of 1.2192m by 2.4384m or greater

with a thickness of 4 (100mm) to 6 (150mm) inches, depending on

the type of panel and regional insulation needs. Unfortunately no

standard exists for these panels as each systems has its own

particular connection needs. For example, the connections for a

concrete system are vastly different than those for a steel panel,

while different types of SIPs, have different connection methods.

While these constraints are thought to have contributed to only an

8% SIP usage in Australia, builders are starting to acknowledge

some of its bottom line benefits such as ease and speed of delivery

whereby wall and roof systems can be built in days instead of a few

weeks. Faster construction time also reduces the chance of theft

and of bad weather creating construction delays. In addition,

because most of the cutting is done in a remote factory, the builder

has to deal with much less on-site waste. Most importantly cost

wise, the workers required only need basic carpentry skills, rather

than more skilled framing crews.

Finally, the time a builder is able to commit to design issues figures

prominently because the factory relies on receiving accurate

measurements and data from the builder in a timely fashion. How

far in advance the builder needs to do this depends greatly on the

type of panel and the manufacturer. If measurements are inaccurate

or incomplete — as is often the case — then the designers have to

make assumptions and there is a chance for problems on site.

Clearly taking the time to get those measurements right the first

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time will save considerable stress and money....and possibly why

some companies would rather do this themselves, albeit charging

you for it.

Use insulated concrete forms (ICFs) Insulated concrete forms (ICFs) replace typical wooden

concrete form work with rigid insulating foam (e.g.

expanded polystyrene) that is left in place after the pour. ICFs can

be used for foundations and above grade walls as well. The

resulting walls are then ready for a finished surface.

ICFs are an easy way to insulate concrete while also saving the

wood used in conventional formwork. Walls from this process give

high levels of insulation without the thermal gaps and air leaks

typical in stud construction. Additionally, some varieties of ICF use

a substantial amount of recycled material in their production.

Use rammed earth for walls Use rammed earth is a cost effective method of building

walls that provides superior insulation, strength and

durability, as well as low maintenance, noise reduction, fire proofing,

load bearing and pest control. It is also versatile, aesthetically

pleasing and can be put up comparatively rapidly.

Technically it is a process whereby a mixture of earth is compacted

in layers between forms. Each layer is approximately 15 cm deep.

As each form is filled, another one is placed above it, and the

process begins again. This is continued until the desired wall height

is achieved. Forms can be stripped off as the form above is begun,

as the compressed earth wall is immediately self supporting. Most

rammed earth builders in Australia use pneumatic rammers to

compact the earth within the form. The process is regulated by the

Building Code of Australia.

Commercial/industrial projects using the rammed earth technique

include the Billabong Surfwear HQ and warehouse in Burleigh

Heads, the EcoCentre at Crystal Waters, the Carlton United

Brewery in Yatala, the Coober Pedy TAFE, the Tewantin TAFE and

Adelaide’s National Wine Centre.

E: Windows and Doors

Provide shading on appropriate windows via overhangs, awnings or deciduous trees

Shading windows with overhangs, awnings or deciduous trees

keeps heat from coming through them while still allowing diffuse

daylight in and views out. Each can be optimised to allow in warm

direct sunshine during the winter and provide shade in the

summer...in both cases leading to a reduction of energy costs.

Size overhangs or awnings to cut off a 30 degree angle from the

base of north facing windows, while using overhangs with vertical

fins on east and west facades. A shade cloth can be placed over a

building’s whole northern wall if it has especially large windows.

Plan windows & skylights, light shelves & window treatments to provide daylight that improves indoor environments

Consideration of how daylight reaches indoor work spaces and

surfaces is very important in terms of productivity, energy costs and

employee health. Some of this can be accomplished through light

shelves, which are horizontal dividers between lower “vision”

windows and upper daylighting windows that reflect light deeper

into indoor spaces. Other methods rely on window treatments

such as louvers, blinds, shades and tints. Strategically placed

skylights are also quite effective, for example Alsynite roofing

sheets spaced throughout a clearspan space will have an enormous

impact on minimising or even eliminating the use of daytime

artificial lighting.

It should be noted that too many windows create glare problems,

leaving many architects to rely on daylight modelling during the

design process, either with a large size physical model or relevant

software packages.

Choose window sizes & glass coatings to optimise energy performance

Windows are less well insulated than solid walls, leaving more heat

loss in winter and heat gain in summer. Architects are now finding

that computerised simulations are the best way to forecast the

overall energy impact on a building’s design, the cost of which is

more than offset by the resulting efficiencies. Meanwhile, window

glass coatings should be considered as a way of retaining or

reflecting heat as the temperature requires.

Stop air leakage at doors & windows Air leakage or “infiltration” around doors and windows

is a major source of unwanted heat gain and loss. Air

filtration control is one of the most cost effective ways to improve

any building and save money. This includes the use of expandable

caulk to seal cracks in framing around the openings, as well as

weather stripping and gaskets on the window and door openings

themselves, particularly if they are older.

F: Plumbing

Use water conserving plumbing fixtures Faucet and shower head aerators, automated faucets and

flush valves, waterless urinals, dual flush toilets and pressure assisted

toilets are reliable alternatives to older fixtures and use less water to

perform the same functions. Moreover, the savings in water charges will

often quickly repay any expenses involved in the conversion, particularly

if there are any government rebates involved. Meanwhile, plumbing

fixtures that use less water often require smaller plumbing lines or less

plumbing, making installation easier and less expensive.

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Use water saving appliances & equipment Look for water efficient appliances and equipment

for your company’s kitchen or freezer room, e.g. dishwashers or

chillers. As to the latter, increased efficiency in larger units can

result in the savings of millions of litres of water per year.

Pre-plumb for future greywater use “Greywater” refers to wastewater from sinks, showers

and laundry...as distinct from “blackwater” from

toilets and urinals. Because greywater is not as dirty as blackwater,

it theoretically can safely be accessed for non-potable uses such as

toilet flushing, watering foliage and hosing down hardstand.

Although current plumbing codes don’t yet recognise this difference,

making most large scale installations impossible, there’s a good chance

they will in the near future, meaning a developer with foresight should

provide all the extra plumbing in anticipation. Also, ensure there’s

enough space set aside for an adequate storage tank and filter.

G: Electrical, Heating, Cooling, Insulation & Ventilation

Design lighting levels for actual use, & use task lighting to reduce general lighting levels

Different lighting levels are needed for different activities, for

example reading requires more light than walking down a hallway.

In other words, a variety of lights are needed to match the variety

of uses expected in every space.

Many buildings are vastly over-lit, which not only wastes money,

but also reduces peoples’ ability to use contrasts in lighting to

identify important in space, making places bland and occasionally

hard to use, even dangerous.

With this in mind, it is recommended that actual work areas are

illuminated instead of whole rooms, while areas with computer

screens may be effectively self-lighting.

Use energy efficient lamps & lighting fixtures Use fluorescent lighting everywhere, either during

construction or as a replacement for existing incandescent bulbs.

This will not only help the environment, because the latter

contributes 25% of total greenhouse gas emissions, but save

money as well, in that fluorescent systems use 20%-30%

less energy to get the same results and have a life span 4-10

times longer. Available configurations include compact fluorescent

lamps (CFLs), the type used mostly in households, or the linear

fluorescents more familiar to industrial/commercial users. Lasting

even longer are light emitting diodes (LEDs), however these are

currently more expensive to produce on a per lumen watt basis

than LEDs.

All of this will soon be moot, since the Federal Government is in the

process of phasing out incandescent lighting, as well as the least

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Coffey Environments (Member: UDIA, ACLCA Qld) has been providing a full range of environmental consulting and contracting services to Queensland businesses since 1990.

Due diligence assessments for property transfers/Development Approvals

Contaminated land/groundwater assessment and remediation; remediation action plans

Environmental and Site Management Plans

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Occupational hygiene services

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Australian Owned ASX listed (COF)

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efficient halogen lights, commencing in 2009. Special purpose

incandescent lights will still be available for medical lights etc.

That being said, it might be a good idea to keep abreast of recent

concerns revolving around CFL disposal or breakage, which in both

cases can release mercury, a neurotoxin that can cause kidney and

brain damage. Possibly this is why GE hopes to have on the market

a new high efficiency, mercury free, incandescent bulb by 2010.

Use lighting controls that save energy such as occupancy sensors Lighting controls are the switches that manage lighting

systems, whether by manual operation of digital signals from

sunlight, motion and infrared sensors. For example, use occupancy

sensors to switch off lights in rooms that get occasional use, such

as conference or store rooms, and light sensors to dim lights in

areas that have access to daylight, such as open office areas and

workplaces. Investment in lighting controls can pay for themselves

rapidly by reducing energy waste.

Use a Building Energy Management System (BEMS)For those with buildings over 9,000m2 it would be

wise to use a Building Energy Management System, that is a

computer that controls all of its major equipment such as heating,

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continued page 11

ventilation, air conditioning, lifts, lighting etc. BEMSs save on

average 10% of total building energy use by collecting information

on this use to allow for better maintenance, replacement and

adjustment over time.

Use passive design to reduce heating or cooling costs Passive design means planning out the natural heat

flow through a building in advance, so that it will stay cool

when it’s hot outside and warm when it’s cold. Passive design is

basically “free” or “cost neutral” because it uses essential building

parts that have to be bought anyway, i.e. mass and windows, in

conjunction with freely available sunshine and wind. Heating and

cooling can take 40% of all energy used in a building and this

method can reduce this considerably.

This concept has been refined for the Australian environment by a

consortium of ethical investors in Melbourne who came together

to design and construct a sustainable office building there.

The passive design aspect of their projects is predicated on the

assumption that personal comfort is not a fixed point, such as 20C,

but instead covers a band from 19-26C. So, for example, when the

internal temperature is within those numbers, air flow is controlled

by a computerised louvre/venting system and by tenants/workers

opening or closing windows accordingly. This flow is sometimes

assisted by mechanical fans. When the temperature is above or

below 19-26C the louvres and vents will be automatically closed,

allowing the manual operation of dedicated internal reverse cycle

air conditioners to either heat or cool each office. There’s also the

opportunity to put on or take off jackets and jumpers.

Use ceiling fans for comfort cooling Ceiling and whole building fans are easier to install than

air conditioning and use a lot less energy, particularly

when it’s necessary to cool large internal spaces. Indeed, they work

with SE Queensland’s weather instead of ignoring it.

Whole building fans should be located at the top of a structure

and installed tightly sealed. Windows or louvered vents should

be located far from the fan to take in air and be able to be

left open while it runs. It should be sized to provide 4-5 air

changes per hour.

Use or upgrade to the best thermal & acoustic insulation you can find Thermal insulation is generally made from glasswool,

polyester or extruded polystyrene and, where possible, should

be applied to a building’s interior walls, ceilings, floors and

ducting. The result is a cooler summer and warmer winter for the

employees, and less heating or air conditioning costs for the owner

or shareholders. It also acts as a condensation and dust barrier.

Needless to say, the better the quality (ie resistance rating) and

more complete the coverage, the cheaper and more effective it is.

Insulation applied to air conditioning ducting is also quite important

since the latter is a major contributor to noise pollution.

Use high efficiency equipment, including fans, pumps & central air conditioning units

High efficiency equipment does more heating, cooling or pumping

with less energy when compared to cheaper alternatives, and

should pay for themselves over an 8-10 year period. They also

break down less and have a longer lifespan.

Use heat recovery equipment Heat recovery is a way of transferring heat energy

from an exhaust stream of air or water to an intake

stream (or vice versa) without contaminating the two streams.

This process saves energy by keeping heat where it’s wanted

(indoors in winter, outside in summer) while still allowing air and

water to enter and leave the building. Mechanically this is done by

installing air heat recovery devices like “heat wheels” in duct work.

Recovering heat from drain water can also be attained by the use

of a gravity flow exchanger.

Geothermal & cogeneration systems to provide heat & electricity

Geothermal systems tap places where the earth’s constant below

ground temperature is hot enough to act as a source of steam

for heating buildings as well as running turbines or generators

for electricity, (e.g. a 150kw generator in Birdsville meets base

load needs from a town bore). While the nearest source to us is

in SW Queensland, beneath the Cooper and Eromanga Basins,

the State Government legislation recently put in place to regulate

and manage exploration for geothermal energy might facilitate

closer usable finds. Indeed, there are said to be “heat anomalies”

beneath the Surat and Bowen Basins.

Cogeneration (Combined Heat and Power or CHP) is the

simultaneous production of electricity and heat, both of which are

used. The central and most fundamental principle of cogeneration

is that, in order to maximise the many benefits that arise from

it, systems should be based according to the heat demand of

the application. This can be an individual building, an industrial

factory or a town/city served by district heat/cooling. Through the

utilisation of the heat, the efficiency of cogeneration plant can

reach 90% or more. Cogeneration therefore offers energy savings

ranging between 15-40% when compared against the supply of

electricity and heat from conventional power stations and boilers.

There are a number around Queensland, most notably in

Toowoomba and Proserpine, for a meatworks and sugarmill,

respectively, however it’s disheartening to find no reference to

cogeneration on the Department of Mines and Energy website.

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Place ductwork within conditioned space, seal joints properly & clean before occupancy

Ductwork distributes air within a building and is mainly made of

large sheet metal and plastic tubes. It connects fans, furnaces, air

conditioners and sometimes wiring to air distribution and return

vents. Where ductwork is installed and how it’s maintained have a

big impact both on energy use, indoor air quality and susceptibility

to the elements, especially in the case of wiring conduits sharing

ducting space. Placing ductwork outside of conditioned spaces

(e.g. on a roof top, in an attic or crawl space) loses heat to the

outdoors, while leaky ductwork anywhere loses heat and lets in

dirty unfiltered air.

Because construction produces dust and fumes, duct cleaning

should be done at the end of the process and before the building

is occupied. These spaces should also be easily accessed by

maintenance workers, and sealed by duct mastic (glue) instead of

duct (or gaffers) tape (which wears out).

Zone mechanical system for more efficient heating & cooling Different buildings often have different heating,

cooling and ventilation needs. Creating “zones” through more

sophisticated control systems allows a mechanical system to deliver

an appropriate amount of air, at an appropriate temperature to a

room where it’s actually needed, therefore offering a significant

reduction on energy costs.

Variable air volume systems offer the greatest flexibility for larger

buildings, while smaller structures should consider the use of

separate systems for separate area.

Use radiant & hydronic systems for increased efficiency & comfortHydronic systems circulate hot and cold water, instead of

air, to cool and heat buildings. Radiant systems then transfer hydronic

heat to occupants through the floor or with ceiling panels.

This method uses pipes instead of ducts, which are smaller and

save space. Also, adding control zones (see #45) is a minor expense

for hydronic systems, but relatively costly for hydronics. Radiant

systems can equally be more comfortable and more efficient than

air based heating and cooling.

It’s important to plan early for a hydronic system, since the savings

on duct space (especially in dropped ceilings) can be substantial.

Radiant floors in particular require careful integration with building

structural components.

Use equipment without ozone depleting refrigerantsMost refrigerants used in air conditioners/chillers are

hydrochorofluorocarbons (HCFCs), a gas, that when released to

the atmosphere, destroys or weakens the all important ozone

level, thereby letting in dangerous levels of UV radiation. The

result is myriad negative effects on human health (e.g. melanoma),

flora development, marine ecosystems, biochemical cycles and

materials. For the industrial sector the latter should be of particular

concern, as synthetic polymers and other materials of commercial

use are especially affected by more intense solar UV radiation in

that they will degrade more rapidly, and curtail their lifespan.

Developers can do their bit to offset or minimise this depletion

by insisting on ozone friendly alternatives, e.g. carbon dioxide

ammonia, and hydrocarbons...a choice backed up by the fact that

Australia is a signatory to the 1992 Montreal Protocol, which, in its

latest incarnation, mandates its 191 signatory nations to phase out

HCFCs and like substances by 75% in 2010, 90% by 2015 and a

service tail of 0.5% from 2020-2030. Happily Australia took early

action, is about 60% in front of its initial allowance and still in front

of the new phase out schedule as well.

Use recycled content, formaldehyde free fibreglass insulation, cellulose or other green insulation materials

Green insulation products include fibreglass made in formaldehyde

free processes (in white batts), shredded paper with non toxic fire

retardants, cotton batts and hypo allergenic foams. They can easily

replace conventional insulation, which contains formaldehyde, a

known carcinogen and particularly dangerous during a building fire.

Separate ventilation for indoor pollutant sources & provide advanced filtration to improve indoor air quality

Some indoor materials and activities generate toxic air pollution,

especially via copiers and other office machines, storage of paints

and chemicals, gas stoves and parking garages, all of which can

emit contaminants that produce unpleasant smells and other

physical reactions…sometimes so severe buildings have been

evacuated en masse and the inside quarantined...what’s now being

called a “sick building.” Indeed, it’s been estimated that 30% of

newly built or renovated buildings suffer from this problem, which

can result in reduced productivity, absenteeism, even litigation.

At the very least, structures with any potential for toxic pollution,

like an office within an industrial building, should have workplaces

separated from the source of contaminants by a ventilation system,

possibly using electronic filters. On that note, it’s important to plan

the space layout and ventilation systems with future uses in mind,

and allowing filters to be placed in locations where they can easily

be changed and maintained.

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H: Renewable Solar Power & Energy

Generate clean electricity onsite using solar photovoltaics Solar photovoltaic panels are well established

technologies for generating electricity for a building’s onsite needs

more cheaply per watt in the long run than relying on the State’s

power grid, either totally or in part.

On top of that, it can be a little money churner for developers

as they are allowed to sell excess electricity back to the grid. For

example, the Mitchell Environmental Industrial Park in Stapleton is

receiving from the power company 44 cents per watt hour from

excess electricity generated from his 5kw solar power system, an

amount that will pay for the system in 9 years.

In a similar vein, it’s hoped there eventually will be rebates or

tax credits to assist photovoltaic implementation on industrial/

commercial buildings because, as yet, State and Federal concessions

only apply to residences, schools, community organisations and

remote communities.

Solar based systems will produce the most electricity over the

course of a year if they are installed tilted up and facing north,

but because power is most expensive on hot afternoons when

the sun is right overhead, panels laid flat produce more electricity

and can be as cost effective as the angled versions. Solar panels

can also be used as sunshades over windows, roof panels for

covered walkways, car ports, or vertically mounted on walls...all

additions that can save the cost of buying other materials for use

as sunshades, covers or facades.

Generate clean electricity onsite using wind turbinesWind turbines are electrical generators turned by large

fan blades facing into the wind. Like solar power, a wind driven

alternative is a good investment, particularly for large installations

reliant on the costly, polluting and uncertain access of conventional

fossil fuel power sources.

These turbines are generally mounted on stand alone towers in

areas free of trees, buildings and other obstructions that block

wind flow. Unfortunately, the present models are quite noisy and

more appropriate for isolated areas, however, by the same token,

they obviate the need to expensively lay out interconnecting cables

from the grid. As with solar, there are presently no Federal or State

rebates or tax credits applying to industrial or commercial users.

Use solar hot water systems Solar hot water systems consist of collectors (usually

roof mounted flat back panels), a storage tank

(similar to a familiar water heater) and a control system (valves,

temperature sensors, a small pump). They have been in use for

water heating for or over 30 years, are reliable, can pay for their

installation in 4-7 years, and save money on heating bills for the

next 25 or more. Standard systems are better installed during

construction in conjunction with a building’s orientation, but are

easily integrated into existing plumbing.

For maximum efficiency, panels are typically mounted within 10

degrees of due north and tipped up at an angle that averages the

sun’s height over the course of a year. Like photovoltaics, these

sun dependent systems may have to be used as a back up to their

conventional counterparts during periods overcast, or vice versa.

Pre-plumb for a solar hot water system

Installing a full solar hot water system can be expensive,

but adding one later can cause costly and unsightly problems of

running plumbing through completed roofs and walls. All very

unnecessary when a very minor planning adjustment during

construction would allow for an easy retrofitting.

To do this, identify solar panel locations on north facing roofs or

walls, and a route for plumbing connections to the building’s water

heater. Put plumbing sleeves where this route criss crosses walls

and, especially the roof, where waterproofing is necessary. There

must also be space set aside for solar tanks of adequate volume as

well as valves and pumps.

I: Interior Materials

Use low or no Volatile Organic Compounds (VOCs), formaldehyde free paints, stains & adhesives

Volatile Organic Compounds are a wide variety of potentially

harmful gases emitted by the drying of conventional paints, stains

and adhesives. Exposure can produce complicated health risks

because of the large number of gases involved, their potential

interactions and their low concentrations over long periods of

time. Indeed, VOC use often means the air quality is worse inside

a building than outdoors at the same location, no matter the

external pollution level.

The best way to avoid any potentially dangerous exposure is to

reduce or eliminate the use of VOC containing products, the

source of which can be found from all paint manufacturers, and

applied like other paints. There’s even speciality paints available for

use around chemically sensitive individuals.

This action will be appreciated by a building’s workforce in terms of

an employer’s concern for their health, as well as their not having

to put up with a VOC’s unpleasant odour....which in both cases

will lift morale and productivity. Moreover, creating a VOC free

environment can reduce or eliminate potential litigation, whereby

an employer’s inaction vis a vis VOCs might have led to workplace

“health clusters” or “sick building syndrome.” (see #49)

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Use low or no Volatile Organic Compound carpets, furniture, particleboard & cabinetry

VOCs come not only from drying out solvents (as discussed above)

but also from the long term of gassing of glues and chemical

coatings in solid materials ranging from carpets to plywood. For that

reason, avoid using particleboard in cabinetry, doors and furniture

with urea formaldehyde resin, choosing MDI or phenolic resins

instead...something easily done by substituting exterior plywood for

interior grade. VOC free carpets are also on the market.

Use exposed concrete as a finished floor

Most industrial buildings have a concrete ground floor,

so it can be practical and inexpensive to add a finished topping

slab. This poses no VOC risks, requires little finishing, and is easy

to clean and maintain, particularly important when there’s a lot

of foot traffic between manufacturing and office areas. It also

works well with radiant heating systems, offsets the need for other

flooring materials, and can be found in a wide variety of surface

finishes and colours.

Use natural materials such as wool & sisal for carpets & wall coverings

For office fitout, use materials produced from biological fibres, oils

and inert minerals. These will add comfort and warmth to interior

workspaces and tend to cause less damage to the environment

than the processing of synthetics. They may also pose fewer health

risks, although some natural materials may not be suitable around

sensitive individuals.

Use sustainable materials for flooring, trim & interior surfaces

Some commonly used materials for rolled sheet

flooring and flooring tiles, such as vinyl (technically known as

polyvinyl chloride or PVC), are not sustainable because they

produce the likes of dioxin that pose major environmental and

health risks during manufacture. Also the additives that harden

PVC can be hazardous. In addition, PVC releases dangerous gases

during building fires and cannot be recycled.

Sustainable flooring options include real linoleum (made of linseed

oil, sawdust and rock flour), sheet rubber, cork and stone, while

rubber, sustainably harvested wood or recyclable plastics can be

used for trim.

Use recycled content floor tiles, carpets, cabinets & countertops

Many interior materials are available with recycled

content. For example, recycled carpets are often made from old

carpet fibre, while ceramic tiles contain glass waste and cabinets

are made from wood scrap.

J: Learning & Sharing

Keep up with new technologies, trends & legislation Even though a developer might not yet choose to

embark on the ESD road, or has done so and is completely satisfied

with the results, the nuts and bolts of environmental building

sustainability are forever changing, improving and becoming more

cost effective.

For these reasons, it’s important to keep up with all relevant

literature, exchange ideas with like minded colleagues, and

become aware of any new or upcoming legislation or Government

policies that might impact on your decisions, particularly as they

relate to building codes, planning, health and safety standards,

rebates and subsidies. As example, should a developer install

fluorescents, now that you’re aware of its potential waste disposal

issues, or wait to see what GE has in mind with their mooted

incandescent alternatives? Or is it best to go to the expense of pre

plumbing for wastewater use in anticipation of the Government

changing its mind? Or should they wait?

Make yourself a resource Wise developers of sustainable industrial estates should

make the knowledge they acquired in building them

freely available to relevant colleagues, planners, the press, and,

importantly, elected officials and their bureaucrats. This is based on

the fact that the more the process is demystified, the more people

will use it, and the more that it’s used, the more clout developers

will have regarding “cantankerous” planners, buying power, as

well as the ability to effectively lobby against or for legislation and

government policies.

Space limitations make it necessary to postpone the rest of this

feature until the Spring King’s Counsel. It will include a detailed

overview of what actions towards sustainability are being

undertaken by SE Queensland’s Top 20 industrial developers.

We offer thanks for the information provided the County of San

Mateo’s RecycleWorks in California, as well as numerous Australian

and overseas sources.

For additional copies of this issue contact Tom Richman at

[email protected]

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“While changes were expected during this

period, the huge jumps were not.”

Huge jumps in transactions and values in 2007… but will they continue in 2008?

continued page 15

Generally, values in all types, location and size categories of

industrial sales and rentals increased markedly through financial

year 2007. The number of transactions also similarly improved

with the average prices significantly escalating in improved,

strata and vacant land sales.

The following seven graphs show total

sales by number and by value since

1998, the break up of the total value

between north and south sides of the

Brisbane River since 1995, and the

north/southside split of improved sales

over the same period; sales comparison

between the north and south over the

past two years and the division of north

and south sales by improved sales, strata and vacant industrial

land, respectively, for the past year.

As at 30 June 2007, transaction wise, the Brisbane market

comprised 32% strata, 54% improved and 14% vacant land

sales. Value wise, it was 16%, 71% and 13%, respectively.

These proportions are similar to the previous year with perhaps

less vacant land being proportionately sold.

The Brisbane industrial sales market for the 2007 financial year

grew in value by $478.70 million or 46% to $1.15 billion, while

transactions jumped 32%, to 1,133. The average value per

transaction advanced 11%, or $133,000 per transaction, to

$1.33 million. While changes were expected during this period,

the huge jumps were not.

The value of all strata sales leaped 71%, while the number of

transactions escalated by 85, or 30%, during the same period.

Thus the average transaction price rose by $168,813, or 31%.

These improvements reflect the lack of freestanding stock in

the under $2 million price bracket and the acceptance of larger

units to 1,000m2 because there is very little else to buy.

The total improved sales advanced in value by 45% and the

average transaction price by 13%. The number of improved

transactions also strengthened by 28%.

The total value of vacant industrial land grew by $44.4

million, or 29%. Transaction numbers also progressed by 55,

or 52%. Interestingly, the average land size per transaction

decreased by 50% from 9,044m2 in 2006 to 4,485m2 in

2007, but leapt in average per square meter price by 71%,

from $160/m2 to $275/m2.

While rental levels continue to move in line with land and building

input prices, an equilibrium has yet to be reached. The continuing

strong Australian economy, South-East Queensland’s higher than

average population increase, economic growth of over 5% per

annum and its huge infrastructure investments currently underway,

will continue to promote higher rents. Modern style, 2,000m2

and over stock have seen rents stretch

to $125/m2 and beyond, depending on

location, while older stock follows this

trend to $110/m2.

While there is some hesitancy, the

market is buoyant. The question is,

will it remain so? Given the present

state of our financial and equities

markets, lower building approvals and

lack of liquidity, commercial property

market sentiment suggests yields will firm, while input price

increases moderate and rents plateau. However, this is yet to

be seen in the Brisbane industrial market.

The Moving Annual Totals for Industrial Sales in BCC

-

200

400

600

800

1,000

1,200

1,400

1,600

1998

Qtr

2Q

tr3

Qtr

419

99Q

tr2

Qtr

3Q

tr4

2000

Qtr

2Q

tr3

Qtr

420

01Q

tr2

Qtr

3Q

tr4

2002

Qtr

2Q

tr3

Qtr

420

03Q

tr2

Qtr

3Q

tr4

2004

Qtr

2Q

tr3

Qtr

420

05Q

tr2

Qtr

3Q

tr4

2006

Qtr

2Q

tr3

Qtr

420

07Q

tr2

$M

illi

on

0

200

400

600

800

1000

1200

1400

1600

Value of Sales No. of Sales

Industrial Property Sales - Brisbane City

0

200

400

600

800

1000

North South

Million

s

Financial Year 2006 Financial Year 2007


15


Make sure your Make Good is good enough.A Make Good schedule can make a positive difference to a landlord-tenant relationship and save both parties thousands.

Contact Napier & Blakeley today.

n Property Tax

n Building Consulting

n Corporate Real Estate

n Quantity Surveying

n Project Management

n Building Certification & Compliance

07 3221 8255napierblakeley.com

Improved, Financial Year 2007

48%

52%

North South

Strata, Financial Year 2007

44%

56%

North South

Vacant Land, Financial Year 2007

31%

69%

North South

Total Industrial - North & South

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

1995

Qtr

3

1996

Qtr

3

1997

Qtr

3

1998

Qtr

3

1999

Qtr

3

2000

Qtr

3

2001

Qtr

3

2002

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3

2003

Qtr

3

2004

Qtr

3

2005

Qtr

3

2006

Qtr

3

2007

Miil

ion

s

North South

Moving Annual Totals

Improved Industrial - North & South

$0

$100

$200

$300

$400

$500

$600

1995

Qtr

3

1996

Qtr

3

1997

Qtr

3

1998

Qtr

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1999

Qtr

3

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2002

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Qtr3

2004

Qtr3

2005

Qtr3

2006

Qtr3

2007

Millio

ns

North South


Vacant Land - North & South

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

1995

Qtr

3

1996

Qtr

3

1997

Qtr

3

1998

Qtr

3

1999

Qtr

3

2000

Qtr

3

2001

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3

2002

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3

2003

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3

2004

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3

2005

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2006

Qtr

3

2007

Millio

ns

North South


Hug

e ju

mps


continued page 17

continued from back page

Indu

stri

al p

rope

rty

mar

ket

become available in sizes from 300m2 to 400m2, many with 80%

to 100% office.

Although the Hale Street Bridge has become a hot issue for many in

this precinct, anecdotal evidence shows that it’s generally supported

by the local business community. Meanwhile, the Plan B “minimal

option” imposed on the BCC by the State Government has meant

that some owners who received resumption notices were relieved

to find their properties weren’t needed after all. The latest is that

the more complicated and expensive interchange upgrade will be

initiated in 2014 when the Northern Link Tunnel is finished.

High rise and much other development activity in Woolloongabba

are still constrained by the failure of the Council to gazette its Draft

Area Plan, which, at last count, is due no sooner than January

2009. On the positive side this has led to some loosening of stock

by long term owners unwilling or unable to wait. Examples include

two adjoining properties totalling 706m2 at Holden Street, which

have just been released onto the market and should be picked

up quickly. Like six months ago, prices have been holding up due

to high demand and low stock of any sort, one case being the

benchmark $4,325/m2 paid by an owner/occupier for a 20 year

old, 200m2 strata titled commercial unit at 1/78 Logan Road. Also

on Logan Road, at Deshon Street, the developer has a DA proposal

for a 25 storey, mixed use affair, which is still above the 12 storey

maximum imposed by the Draft Plan.

When the Plan finally is law, there should be massive changes of

use over the next 5-10 years, particularly along the likes of Nile

Street, Stanley Street, and Wellington Road at Vulture Street,

however the traditional service industry area along Deshon Street

should remain the same, albeit possibly spruced up a bit or

parts turned into strata title. For example, the old Samios site at

46 Deshon Street is due to begin construction of a unit development

later this year.

Recent jumps in interest rates have caused more businesses to

look at leasing, but here, as everywhere in the City fringe, there’s

a lack of stock. When anything is found, needless to say, asking

rental rates reflect this and aren’t expected to peak for another

12-18 months.

Abutting Woolloongabba, in Dutton Park, the long awaited Boggo

Road Urban Village Development on Annerley Road has had its

Application approved by the Brisbane City Council, albeit subject to

a range of conditions, including a requirement that 25% of its 500

residential dwellings be for affordable housing. Infrastructure works

are expected to be completed in 2009 and will be followed by the sale

of selected residential and mixed-use sites to the private sector for

development, with housing to be completed by 2011. A key element

of this project is an Ecosciences Precinct which will, according to a

Ministerial release, “bring together some 1,000 research staff from

across the CSIRO and the Queensland Government to address some

of the country’s and, indeed, the world’s biggest environmental

issues – climate change, water, and balancing industrial development

with environmental sustainability.”

Meanwhile the Boggo Road Busway is reported to be coming on

line next year and is intended to provide a public transport link for

those travelling from and to the south and eastsides to the Princess

Alexandra Hospital, the U of Q and the Urban Village.

Although East Brisbane still tends to be tightly held, there

were some significant benchmark sales including a 501m2 office/

showroom at 63 Wellington Road, that was bought for $1.3

million, or $2,595/m2, and will be redeveloped into office/

showroom, while a developer is said to have paid $1,400/m2 for a

standalone building at 19 Manilla Street and intends to refurbish.

Meanwhile, units in a development now being built at the corner

of Manilla Street and Mowbray Terrace are thought to have been

going for as much as $4,500/m2.

The next six months will be the same, though most transactions are

expected to be generally off market.

Coorparoo has seen little sales activity and anything that does

become available will receive extreme interest. For example, a

500m2 office/warehouse on 415m2 of land at 42 Clarence Street,

which received offers one year ago for $840,000, is now expected

to achieve over $1 million. Many enquiries on this and other

properties in this popular suburb are being made by business

owners who live here and want to be closer to work...a trend

exacerbated by increasingly congested cross city traffic.

The next six months should be much of the same, however it’s

expected to pick up after that, particularly for redevelopable stock

within or abutting the catchment of the mooted Transit Oriented

Development over the train station. Like in Woolloongabba, the

next few years should see the building of strata title units along its

part of Deshon Street.

Fortitude Valley, Newstead, Bowen Hills, Albion & Windsor

Sales: Lex Duncan (0412 734 573)

Leasing: Richard Fox (0405 057 218)

At A GLANCE:

• There’s some Valley office space for rent, but mostly at

benchmark rates

• Newstead redevelopment to push prices up as much as 40%

• ICB led to 100% boost in Bowen Hills prices, with more to

come

• Bowen Hills and Albion earmarked for Transit Oriented

Developments

• QR and developers buying up as much land around railway

stations as possible, at this point for unspecified uses

Fortitude Valley’s industrial sales activity has been almost non-

existent due to the ever present lack of stock, with the only known

transaction to be the $4 million paid by a local entrepreneur for

a 1,110m2 three storey office/warehouse on 930m2 of land at

118-120 Arthur Street. The new owner will be receiving a monthly

holding income until a decision is made on what to do with it.

How’s the industrial property market faring in your precinct? Continued


17

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continued page 18


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Properties for rent are a little more available, though mostly

commercial, with a few new projects coming onto the market,

albeit for benchmark rates. Indeed, it’s nearly impossible to find

quality space for under $450/m2 and there are reports that some

lessors are asking for, and getting, an incredible $650/m2.

Most stock in Newstead is still very tightly held, and anything that

does come onto the sales market reflects this popular suburb’s

dramatic jump in prices over the last six months, in some cases as

high as 40%. Among the few transactions that did occur include

the $6.85 million paid for a 1,351m2 office/warehouse on 1,975m2

of land at 27 Wyandra Street, a property ultimately bought for its

redevelopment potential. This site is presently tenanted by CSR’s

Gyprock Division, which will be replaced at the end of its lease.

In addition, two 240m2 freestanding industrial buildings on 341m2

of land at 13 & 15 Creswell Street were both bought for $1.2

million and are expected to be put back onto the market at much

higher prices. The only other sale was the total of $4,480,000

received for two separate buildings on Byres Street, behind Eagers,

off Breakfast Creek Road.

During the next six months asking prices should continue to leap

even more, especially for any properties within 1/2 km of this

area’s new, large developments, eg the soon to be occupied Virgin

Airlines’ three storey building on Edmondstone Road, the planned

ABC replacement HQ on a 3,800m2 site at the corner of Durong

Street and Breakfast Creek Road, and, of course, Mirvac/FKP’s

17.4 ha Riverpark at the ex-Boral gas works, which just finished site

remediation and has been given the go ahead for a masterplanned

mixed use development.

This suburb’s leasing market, meanwhile, has been quite active

and should continue to be so during the next six months, though

available industrial stock is virtually non-existent as owners realise

an office/warehouse will only achieve $140/m2 at best, whereas a

reasonably well designed commercial space can bring in around

$400/m2, even with no parking.

While some of the upcoming movement will continue to involve

the leasing of ex-industrial buildings by office/showroom users,

particularly on well exposed streets like Montpelier and Abbotsford

Roads, many of these properties have been earmarked for

redevelopment as multi storey residential, office or mixed use high-

rises, generally between 6-8 floors...one of them ready to go up at

a Montpelier Road site.

State Government’s intention is to make Newstead the Brisbane

equivalent of North Sydney, albeit a bit more diverse architecturally

and demographically, a concept already well down the road as

it becomes increasingly attractive to users of every type and size

space. Indeed, a good portion of these buildings would be ideal

places to relocate Government departments, in line with recent

statements advocating the virtues of CBD decentralisation. This

“anchoring” would act as a magnet for like sized organisations in

a manner similar to when the BCC relocated staff to the TC Beirne

building in Fortitude Valley.

Bowen Hills has become a showcase for all that’s potentially

beneficial about government infrastructure investment, witness

the positive impact of the Inner City Bypass (ICB) on its traffic

amenity, easier access to the CBD and Coronation Drive and, not

least, property values, which have jumped over 100% since it came

on line in 2003.

It’s expected the inclusion of the North South Bypass Tunnel (NSBT) from Woolloongabba to the ICB, the Airport Link from ICB to the airports via the East West Arterial, plus the mooted Northern Link connecting the Western Freeway at Toowong to the ICB at Kelvin Grove, will have an even more dramatic effect on this already much sought after suburb, eventually turning it, as some would say, into the “Next Big Thing.”

Further accentuating these improvements is the State Government’s decision to master plan Bowen Hills into a satellite city, ala Chatswood in Sydney or the Canary Wharf in London. This process is under the umbrella of its new Urban Land Development Authority (ULDA), which is responsible for turning the area into a high end as well as affordable mixed use precinct in a similar fashion, if not scale, to what the BCC’s Urban Renewal Task Force did with the Valley, Newstead, New Farm and Teneriffe, though probably with more powers to amalgamate and onsell. And, as mentioned above in relationship to Newstead, would provide ideal space to relocate Government departments from the CBD, in fact even more so since it offers wider transport options.

Central to the project, which has a 50 year planning horizon, is the placement of a Transit Oriented Development (TOD) over the Bowen Hills Railway Station in a pocket formed by the ICB and Abbotsford Road, and accessed via Hudd Street. It’s only 4.5 kms

from the CBD and provides an interchange for three train lines.


continued page 19

Despite significant industrial, commercial or retail usage along the

streets to the station’s south, southwest, and on the other side of

Abbotsford Road, this site would be an ideal TOD for a number

of reasons, including the availability of approximately 14,000m2

of developable Government land between Hudd Street and the

station as well as the suburb’s changing demographics and tone,

which should see high density residential development dominate

building activity in the immediate surroundings within the next

5-10 years...a trend that should coincide with redevelopment of

the RNA and the Queensland Newspaper site on Campbell Street.

Reflecting the TOD’s new population makeup, users and occupants

could be serviced by the conversion of Hudd Street into a chi chi

cafe strip, while retail frontage along Abbotsford Road would need

to be similarly smartened up. A knock on effect of this upgrading

would be that the industrial activity along the streets to the south

of Hudd Street would either be forced to relocate or be part of a

more visually pleasing industrial park. In the interim the station’s

smallish Park & Ride could be enlarged by the inclusion of the

14,000m2 parcel that adjoins it.

In the much longer term, there might be good reason to consider a

Mega TOD that incorporates the Mayne Railway Workshop to the

west. Meanwhile, QR has been buying up an enormous amount of

land around the station for uses as yet to be determined, the same

for speculative developers, though with less success.

In any case, the footprint left by recent redevelopment activities

as well as the above mentioned infrastructure projects, combined

with high demand, have dramatically reduced industrial sales

possibilities. Even more constraining, however, is the fact that many

owners of older style office/warehouses have little extra money or

expertise for converting their property into a higher and better use,

but are reluctant to sell in hopes of receiving much higher prices

from commercial or residential developers, if not now, then into

the non-specific future. Unfortunately, some of them will be left

in the lurch should there be a market “shakeout” in a couple of

years, meaning now might be the best time to sell.

As a result, the last six months has only seen one transaction, a

fairly run down 350m2 building at 28 Brookes Street, bought in

October of last year for a benchmark $1.25 million, and would get

more than $1.50 million if on today’s market.

As with other City Fringe suburbs, leasing activity is faring better,

particularly for neat and tidy or refurbished office space, which

will rent quickly. For example an office at 7/10 Hamilton Place was

subleased for $280/m2 only one week after coming onto the market.

Its expected no more tenancies of any sort coming on line during the

next six months, though some are spotted around the area.

Meanwhile, the Royal National Association (RNA) is asking the

ULDA to approve a billion dollar redevelopment concept for part of

its 22ha Showgrounds site, a 15 year project that reportedly would

provide 250,000m2 of commercial space, 30,000m2 of retail,

30,000m2 of residential and a hotel above the 75,000m2 industrial

pavilion. (an undertaking, it should be noted, made possible by a

BCC that had the prescience to construct the ICB tunnel under it in

a manner that would allow multi-storey buildings on top).

In conjunction, a committee made up Queensland Rail and

Queensland Transport is said to be looking into the viability of

an underground rail link between Woolloongabba, the CBD

and Spring Hill, with a possible interconnection to the existing

line that runs through the Showgrounds, and provides a station

near the Main Arena. The latter, which is presently only used on

EKKA days, might be replaced by an intermodal facility handling

both rail and bus passengers, including those working, visiting or

living in the nearby development. The logical choice you’d think,

however the Courier-Mail provided RNA Development Scheme

map confusingly has an arrow pointing the station more towards

the City, possibly near the old Queensland Museum, which is

reported to be the new front entrance...or closer to the Northern

Line adjacent to the RBH.

Albion has started to emerge as a potential City Fringe major

“player”, not the least for it being similarly recognised as a possible

TOD above its railway station and the contiguous former flour

mill. Called Albion Village, it’s on land that lies within a triangular

parcel formed by Albion Road, Hudson Road and Mawarra Street...

thoroughfares that will, as a result, be eventually lined with mixed

use high rises, ala the TAB building, which is equivalent to 12

storeys tall.

Until then, Albion has also been found to be better able than many

other City fringe suburbs to provide hard to find industrial spaces

for sale, especially around Hudson Road, Corunna Street, Moore

Street and Sandgate Road in its more south-westerly part. This is

reflected in the high demand for property here and, of course,

the ever increasing prices to match. Meanwhile, to the east of

Sandgate Road, a benchmark $930,000 was paid for a 350m2

office/warehouse at 19 Collingwood Street, as well as the $1.3

million that bought a refurbished and tenanted 360m2 building at

14 Nariel Street.

In the more traditional industrial neighbourhood to the west of

Sandgate Road, demand is also high but stock remains tightly

held. The next six months and beyond, however, should see some

freed up as more and more owner/occupier or investors (and their

tenants) read the handwriting on the wall and realise that unless

they can convert their spaces into a higher and better use, truck

access problems and high rise encroachment will force them to

relocate further out. Unfortunately, this might not happen quickly

because nobody will buy until everyone is assured that their land is

able to have mixed use high rise, not just the 2-3 storeys if simply

converted into commercial.

The rental market is also in high demand but little is available, save

for older warehouses, which tend to sit empty because, as noted

above, potential tenants don’t want to put up with problematic

truck access. Then, again, that’s kept the prices for this sort quite

low. Other spaces that did come up for rent tended towards office

conversions, and have been receiving healthy rates, one example

being the $300/m2 paid for a house remade into commercial space

at Sandgate Road.

Windsor has seen only a few industrial sales or leases over the

last six months due to a lack of stock, particularly around the

Homemaker Centre at Newmarket Road, a shortfall caused in large

part by ongoing conversion to commercial use and a changing

demographic. The rest of this year may, however, see some

properties become available as interest rate increases take their toll.


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19

continued page 20


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helPinG you make the riGht deCisions for your ProPerty

Milton, Stafford, Enoggera, Kedron & Kelvin Grove

Sales: Lex Duncan (0412 734 573)

Leasing: Chris Hinton (0407 147 556)

At A GLANCE:

• Milton commercial sales prices to jump 20%

• Residential high rises to reduce older commercial stock

• Industrial space for rent scarce but rates have stabilised

• 30 storey Transit Oriented Development to dominate area

• Stafford, Enoggera and Kedron remain relatively tightly held

Milton, once again the city fringe’s blue ribbon precinct, now

mostly commercial, has seen only a few sales during the last six

months due to a lack of stock. Examples include the benchmark

$1.185 million (or $4,505/m2) paid for a 263m2 office at

1/20 Douglas Street, and an equally benchmark $855,000 (or

$4,700/m2) bought a 181m2 office at 16/43 Lang Parade. The former

unit was recently put back onto the market for $1.35 million, which,

if purchased, would, at $5,133/m2, be another benchmark.

While this period saw prices escalate 10% in response to the

shortfall, an even tighter market will see them jump as much as

20% by the end of winter due to much higher demand, a trend

that will be exacerbated when traditional office spaces between

Railway Terrace and MacDougal Street are supplanted by upmarket

residential high rises.

Similar increases will occur for properties impacted by FKP’s $330

million “Union Milton” Transit Oriented Development situated

above the train station, a long awaited addition that was expected

to receive DA approval mid summer. When finished, it will

provide a $20 million station upgrade, 13,500m2 of office space,

approximately 3,000m2 of retail as well as two 4-4.5 star hotels,

and a 30 storey residential tower, which will be the tallest building

in the city fringe. Also featured will be conference facilities, close

proximity to Suncorp Stadium and retail along Railway Terrace and

the rail concourse.

As might be expected these developments are also pushing up

rental rates for commercial space, though industrial seems to have

stabilised despite it being even more scarce, especially for stock

under 500m2.

Some industrial leases that did occur was the $350/m2 achieved

for a 1,000m2 office/warehouse at 27 Douglas Street, while 150m2

of ground floor office within a 930m2 standalone commercial

building, at 31A Cordova Street, was taken up for $180/m2.

Meanwhile, there’s a vacant, refurbished 1,000m2 office/showroom/

warehouse for $400/m2 at 46 Douglas Street, and a well placed

development site at 28 Finchley Street is expected to provide up

to 1,000m2 of office/workshop over two levels and be priced at a

competitive $460/m2. It will also be for sale. In addition, a 263m2 unit

with dual access can be found at 1/20 Forte Street for $400/m2.

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continued page 22

Stafford remains tightly held as no new land is available, with

nothing for sale and only a few spaces for rent. One of the latter,

includes a very hard to find approximately 920m2 warehouse at 27

Hayward Street, for $110/m2, while a new, adjoining 270m2 office

at the same address can be occupied for $200/m2...or $130/m2 if

leased together.

Kelvin Grove and Enoggera remain tightly held and have

seen very few sales or leasing transactions. Some recent leasing

opportunities have arisen however, including the $356/m2 being

asked for a modern 247m2 office with seven car parks at 1/165

Kelvin Grove Road, the $90/m2 being asked for a 530m2 office/

warehouse at 92 Bellevue Avenue, while $148/m2 will get you into

450m2 of office at 30 Pickering Street.

Wacol, Carole Park, Sumner Park, Seventeen Mile Rocks, Darra, Oxley, Richlands, Redbank & Heathwood

Sales: John Fiore (0419 123 007)

Leasing: Ben Donnelly (0438 643 330)

At A GLANCE:

• Wacol good source of large Future Industry parcels but

servicing overdue

• Carole Park remains very tightly held

• Darra enjoys good unit sales, new developments and road

upgrades

• Sumner merchants up in arms over access road closure

• Leasing activity strong in Richlands

• Darra traffic to be eased by roadworks

Wacol still has potential to provide developers with larger parcels

of Future Industry zoned land, but these won’t really become

usable until long overdue servicing is put in place. Until then, the

average prices they’ve achieved have been around $135/m2, while

land on Tile Street, and closer to services, goes, not unsurprisingly,

for a much higher $280/m2. In both cases about 5% more than

six months ago. Other serviced land on the market must include

the 13,096 GI parcel at 1435 Boundary Road, which features all

infrastructure charges being paid, an existing DA, over 90m of well

exposed frontage and excellent access to the Logan Motorway and

Ipswich Road.

Meanwhile, the AMP owned, CRI managed, Westway Industrial

Park at 1472 Boundary Road is nearing completion and has seen

3 of its 27 units already precommited. Sizes range from 128m2 to

900m2, at prices between $1,650/m2 to $2,475/m2 (or $123/m2 to

$187/m2 if leased).

Needless to say, Wacol’s status will be enhanced even more

once the mooted 100ha Metroplex at Westgate Business Park

comes on line at the ex-Army Barracks...a master planned project

situated along the Ipswich Motorway with a heavy emphasis on

environmental sustainability and social amenity.

Leasing activity has been quite good and at fair market rates,

particularly for mid sized stock. For example a new 2,993m2

unit in a complex of four at 1/29 Industrial Avenue achieved

$103/m2, while a new 2,150m2 standalone office/warehouse at

2/115 Campbell Avenue rented for $120/m2.

Among the rental spaces that have just come onto the market is a

development at 1274 Boundary Road, which is providing five units

with a high office component in sizes from 429m2 to 571m2, at

rates of around $160/m2.

Ready to be built are two freestanders of 1,332m2 and 881m2 at 71

Wacol Station Road, both of which will be available for occupancy

late 2008, at $125/m2. Another freestander is about to go up at 1435

Boundary Road and will also be completed later in the year, in this case

a 3,232m2 office/warehouse with 3,000m2 of yard, at $135/m2.

Once again, Carole Park suffers a limited amount of land or

buildings for sale as most vendors seem happy to stay put and

enjoy the strong increase in the value of their property. One

deal that did occur was the total of $4.4 million paid for two

1,590m2 adjoining warehouses at 140 Mica Street, in the State

Government’s Synergy Park.

There have been some leases, however, including a 1,169m2

office/warehouse with 1,500m2 of yard at 8 Antimony Street,

which achieved $91/m2. Available for tenancy is a new 2,755m2

freestanding office/warehouse at 134 Mica Street, at $120/m2,

while two buildings are under construction at Krypton Court. Sized

at 3,476m2 and 4,830m2, they’re due for completion late this year,

at $115/m2.

In Sumner Park, TPG Developments has pre-committed five

of their 27 units at Forge Close and is expected to commence

construction shortly. These range in size from 71m2 to 193m2,

with prices between $175,000 and $400,000. GPD Properties

are also faring well, with their 19 unit development at 71 Jijaws

Street due for completion late this year and already four have

been pre-committed. Ranging in size from 100m2 to 320m2 they

are priced between $235,000 and $700,000, or $156/m2 to $210/

m2 if rented.

Leasing activity here has been helped by good demand matched by

a healthy amount of available stock, with more to come. Deals that

occurred include a 705m2 metal clad office/warehouse on 2,451m2

of land at 31 Neon Street. It was rented for a healthy $113.50/

m2, possibly because of its good access, a hard to find feature

in this suburb. Also leased was a 1,368m2 office/warehouse at 1

Bronze Street, for $95/m2. Presently vacant for $120/m2 is a 797m2

freestander at 16 Forge Close.

Meanwhile, some Sumner Park business people are reportedly

up in arms about the State Government’s proposed closure of

Bullockhead St, one of its two entrances, to allow the upgrade of

the Centenary Highway.

They say the closure would mean this precinct would only have the

already congested Spine Street as an entrance and exit until 2010,

when the Brisbane City Council’s $20 million second exit from the

Centenary Highway via Wolston Road comes on line, adding that

the result during the interim would have a “devastating impact

on passing trade.” According to these businesses a better option

would be to keep Bullockhead Street entrance open until the

alternate exit is built.


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The answer is; surprisingly easy. The relative ease with which a landlord may lawfully terminate a lease also makes the risk of termination the most powerful weapon in a landlord’s arsenal for obtaining a tenant’s compliance with the lease.

The procedure for termination is not complicated, but every step must strictly comply with legal requirements. Where the term of a lease is greater than 12 months, a landlord must serve a notice on the tenant advising it of the breaches of the lease and giving it a reasonable time to remedy them. If the tenant fails to do so, it will be lawful for the landlord to terminate the lease. The most effective method of termination is to enter the premises, change the locks and refuse the tenant possession of the premises.

To ensure that the termination is carried out lawfully, there are several golden rules:

1. The notice must be in the approved form, without changes;

2. The notice must properly specify the breach of the lease that is complained of. For example, it may not be sufficient to refer broadly to an obligation to pay rent and outgoings.

3. The notice must specify how the breach is to be remedied.

4. The notice must require the remedy within a reasonable time.

5. The notice must be served on the tenant in accordance with the provisions of the Property Law Act.

Any discussions with the tenant after service of the notice should be handled carefully. Agreements that allow the tenant to remedy the breach progressively may supersede the notice and prevent the landlord from terminating the lease if the tenant does not do as it has promised.

If the landlord has terminated the lease, the tenant may apply to the Court for relief. Broadly, the tenant will need to explain why the

breaches were not remedied and when and how it will now do so. The Court may then exercise its discretion and ‘reinstate’ the lease. There are numerous legal arguments why a court should do so, but the most compelling are:

1. Unlike most other contractual relationships a lease creates an interest in the title to the premises being leased which is harder to extinguish; and

2. The termination of a lease results in the loss of business premises. This may cause the business to fail which has significant consequences for the owners, employees, creditors and the community.

Despite these arguments frequently persuading a court to grant a tenant relief, the termination of the lease by the landlord is nevertheless very effective in procuring a tenant to strictly comply with lease obligations in the future. The unexpected lockout of the tenant from its premises and the costs and time involved in making an application to a court for assistance is a considerable penalty of itself. Furthermore, provided the landlord has acted lawfully the court will often order the tenant to pay the landlord’s legal costs of the court application. Frequently, those costs are substantial.

The inconvenience and considerable cost a tenant is put to upon a landlord’s lawful termination of the lease are significant. They make the landlord’s termination of the lease the most effective remedy available notwithstanding that a court might ultimately come to the tenant’s aid.

terminating a Lease:How easy is it?

About the Author: Les Power is a Partner of the firm Wilson Lawyers and an Accredited Specialist in Commercial Litigation.

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This article is for general information purposes only. Readers must not act on the basis of any matter contained in the article but rather obtain their own professional advice.


continued page 23

At Seventeen Mile Rocks a long awaited 16 unit development

at 40 Counihan Road is expected to be completed in November. It

will provide sizes from 160m2 to 312m2 and, given the lack of stock

in this precinct, should easily achieve $2,300/m2. This is particularly

true for freestanders, as exemplified by the premium prices being

asked. For example a 600m2 building on 1,100m2 of land is on the

market for a possible benchmark $1,100,000.

This suburb has seen very little leasing activity, with only one recent

transaction, the $85/m2 paid for a 307m2 unit at 2/17 Benronalds

Street. As to the future, the above noted development at 40

Counihan Road also has space for rent from $170/m2.

In Darra, unit sales have done well, with only one left on the

market, an office/warehouse at 38 Limestone in the QCL Industrial

Estate. Additional stock will be provided at Archerfield Road,

where the WD Property Group is currently developing a quality 11

unit complex close to the Ipswich Motorway. Each is priced from

$2,100/m2 to $2,300/m2, which some say is a little higher than the

market can bear, or from $160/m2 if rented. Also in Darra, at 2684

Ipswich Road, a 10 unit development is nearing completion and

will feature combinable spaces from 387m2 to 787m2, at rates from

$140/m2. Like the preceding development, it also enjoys excellent

exposure to the Ipswich Mororway and at rates to match.

Both of these developments should be helped by the upgrading of

the Centenary Highway/Ipswich Motorway, which should free up

the morning and afternoon bottlenecks at the roundabout. Also

the opening up of Boundary Road in Richlands through to Darra

should ease traffic flow along the Ipswich Motorway.

Oxley has seen little leasing activity, though a good property is

available at 141 Boundary Road, where it meets Blunder Road, a

7,243m2 freestander with excellent access that is going for $95/m2.

Sales here have been non-existent.

In popular Richlands, the Pellicano Group is commencing

construction of two 3,000m2 buildings in 97 Kimberley Street,

which will offer good roof height and semi trailer access and, at

$1,600/m2, be of good value. Greenmont’s Richlands Business Park

at 315 Archerfield Road has done exceptionally well, with only

three of its 27 units remaining unsold.

Leasing activity has also been quite strong, with a couple

representative examples being the $95/m2 achieved on a new

2,800m2 office/warehouse at 2/679 Boundary Road, while a

1,930m2 office/warehouse at 18 Enterprise Street was taken up

for $106/m2.

Meanwhile, large freestanders will be available for rent at the rear

of 680 Boundary Road, 794 Boundary Road, and 739 Boundary

Road, as well as within the above noted Pellicano estate, all at rates

from $110/m2 and $120/m2.

In Redbank the opportunity exists to purchase two fully serviced

parcels of land ranging from 5,000m2 to 6,000m2 for only

$275/m2. This suburb has had little leasing activity, however a new,

dividable 1,735m2 freestander on 4,000m2 of land with excellent

truck access was taken up for a very competitive $95/m2.

In Heathwood, Paladin Australia, with its exceptional exposure

to the Logan Motorway, is offering a modern 4,500m2 facility on

9,551m2 of and is for sale at $7.7 million or $125/m2 if rented.

On the leasing market, a new 1,312m2 office/warehouse at 53

Moreton Street was taken up for $115/m2, while a just completed

1,238m2 building is available at 59 Moreton Street at $115/m2.

Bulimba, Morningside, Murarrie, Hemmant, Lytton & tingalpa

Sales: David Knapp (0421 571 140)

Leasing: Rob Finlay (0411 747 165)

At A GLANCE:

• Bulimba has had few sales and little enquiry

• Smaller Morningside units are rare but receiving benchmark

rates when found

• Rates in Murarrie set to jump

• Sales very strong in Hemmant, leaving little to choose from

• Lytton Industrial Estate only has five lots left for sale

• Rental rates high in Lytton because they must compete with

owner/occupiers

• Small spaces very popular in Tingalpa and achieving healthy

prices

Bulimba has practically no industrial stock for sale or lease

and received minimum enquiry. This should change a bit once

a 6,856m2 parcel with frontage to Barramul, Corio and Stuart

Streets comes on line. As yet designated for office/warehouse use,

the property lies 300m from the Oxford Street retail precinct and

is an amalgamation of 10 lots. It presently contains five tenanted

warehouses and some vacant land, which has a DA approval for

self storage. Reportedly it will be developed in stages, either as

mixed use, or even residential.

Popular Morningside continues to receive lots of enquiry,

particularly from those being forced out of the traditional city

fringe, but little is available for sale, and what is on offer tends to

be investment stock, eg the 211m2 office/warehouse with a long

term tenant and a 6% yield at Riverside Place that is on the market

for $550,000.

Coming up is a property at 470 Lytton Road, which features

33,000m2 of improvements on 73,700m2 of Warehouse and

Transport zoned land, with 240m of frontage. It would come

with a massive annual passive income of around $4.1 million

from its tenants, some of whom are signed up for 10 year leases.

Nearby, many are still waiting for redevelopment to start on the

27.49 ha Mobil Oil site at 506 Lytton Road, a riverside parcel that

was purchased two years ago for $45.1 million and planned for

completion within a 10 year horizon.

Morningside has very little rental stock available either, particularly

for smaller sizes, which, when found, will receive near benchmark

rates of around $145/m2, up from $115/m2 just six months ago.

There’s also not much secondary space, but anything that does

come onto the market is snapped up.

The Space Frame development at 333 Queensport Road, Murarrie,

has seen all but two of its 10 units sold. Both feature a high office

component so should be taken up easily. Other sales include the

$685,000 paid for a 319m2 unit at Murarrie Road.


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Those looking to buy, will soon find some stock in a new

development at 41 Paringa Road, while there’s 880m2 now

available at Alexandra Place and going for $$2.35 million or

$2,670/m2, which, if received, should be a benchmark. In addition,

a 217m2 unit at Murarrie Road is on the market for a more than

fair $550,000.

As to Murarrie’s leasing market, the 24 unit Bridgemark Centre at 93

Rivergate Place has seen most of its stock sold to owner/occupiers,

leaving whatever’s left available for rent at a possible benchmark

$175/m2 to $195/m2. On that note, it’s expected rates are to go

up during the rest of the year, however, prospective tenants will be

paying whatever’s being asked, albeit begrudgingly, otherwise the

high price of land will make it impossible to develop.

Hemmant’s sales market has seen good action during the last half

year, which, for example, has left only a couple of buildings on the

market in the 21 unit The Avenue estate at the corner of Aquarium

and Lytton Roads. Other sales include Watpac’s purchase for $11

million of a 3.3 ha trailer park site at the end of Aquarium Road, which

will be redeveloped into a marina, while 2.06 ha of land at 68 Gosport

Street sold for around $8 million. On the market is a 2,000m2 parcel at

1247 Lytton Road, which has a DA for 13 workstations.

In the State Government’s Lytton Industrial Estate, Australand has

paid $375/m2 for a large parcel of land at 44 Freight Street, and

will develop it into Port related industrial use, while some sold on

Trade Street. This leaves the estate with only five blocks ranging

from 5,000m2 to 15,000m2.

Leasing activity has mainly centred around Benjamin Place in the

Pradella built but no longer owned Port Link Industrial Estate,

where space from 1,000m2 to 1,700m2 has been taken up at

$135/m2, rates that are possibly higher because they must compete

with the prices owner/occupiers are willing to pay. Secondary stock

here is also scarce and goes quickly at a premium rate. Rates should

jump some more over the next 12-18 months then level off.

tingalpa is seeing a good market for space between 100m2 and

300m2, some of which can be found in a new development at

396 New Cleveland Road, which has put 15 work stations on the

market for a healthy $2,750/m2.

Eagle Farm & Pinkenba

Sales: Jane turnbull (0409 711 559)

Leasing: Richard Fox (0405 057 218)

At A GLANCE:

• Many large properties sold in Eagle Farm, but few more will be

coming on line

• Older and obsolete ”factory” stock receiving a decline in

interest

• Interest remains high, despite traffic congestion

• Many sales “off market”

• Leasing activity slow due to a lack of stock, but some more

space is expected to become available

•Raw Pinkenba land along Main Beach still under scrutiny

The last six months have seen the purchase of a number of Eagle

Farm’s larger properties. Among them was the $9.35 million (or

$1,700/m2) an expanding G.James paid for a 5,400m2 building

on 1.3 ha of land at 105 Kingsford Smith Drive, as well as the

nearly $2.9 million paid by a mining company for a 1,400m2

building on 3,400m2 of land at 21 Lavarack Avenue, one that

received an extreme amount of enquiry during its Expressions of

Interest campaign. The biggest deal, however, was the sale for

$11,900,000 (or $1,400/m2) of the 22,400m2 Rover lawnmower

manufacturing facility at 155 Fison Avenue, which was considered

surplus to requirements as they now import these items from

China. Ultimately bought for land banking, the deal includes a

5+5 year leaseback arrangement with Rover, which will now use

it for warehousing. Other sales include a number of transactions

conducted “off market.”

That being said, few more will be on line to replace them, in

large part because many of their owners are intent on either

landbanking in hopes of eventually receiving higher prices or are

asking unrealistic prices. Others are holding off until they can

convert them into a higher and better use, either to onsell or to

charge more rent once their present industrial tenancies reach

the end of their terms. Unfortunately, a high proportion of these

buildings are very old, multi columned and low roofed factories,

therefore obsolete and unusable for modern businesses, especially

by this suburb’s prime users, warehouse and distribution firms. On

that note, it’s expected that they will need a good deal of money

and expertise to refurbish, redevelop and remediate once the

tenants do vacate. As above, it’s suggested now might be a better

time to put them on the market, especially if owned by people

getting on in years and might not have the time to wait.

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Meanwhile, Eagle Farm remains in high demand and should see prices

rise by at least 10% over the next half year, even from those concerned

about traffic congestion along Kingsford Smith Drive brought about

by work on the Gateway Bridge and Arterial, as well as the extra

trucks used in hauling material from the NSBT excavation. This is the

same for existing commuters, most of whom have patiently learned

to plan their days around it in the belief that all the new infrastructure

will be worth the wait. Those who need more immediate relief,

however, are electing to look further east and north.

Leasing activity has been meagre due to a lack of stock, although

anything with good access and roof height will be taken up

quickly at premium rates. Examples include two 2,500m2 office/

warehouses at 33 Lavarack Avenue, which were leased for over

$125/m2 immediately after coming onto the market. It’s hoped

that, as rumoured, some more space will become available within

the next six months.

Pinkenba, which has been receiving some of Eagle Farm’s overflow,

has seen quite a few large parcels changing hands...$200/m2

if unserviced, unfilled and not yet zoned General Industry, or

dramatically higher when ready for development. The former

are allotments along Main Beach Road, which are presently

being assessed for their General Industry potential by the BCC in

consultation with business and community groups. This includes

the 3 ha of an 8 ha Australand site, which is being filled and

compacted for D & C use but, as yet, enjoys no sewerage. It’s

hoped all of this will be resolved one way or another by 2009.

Leasing activity here has been slow, possibly because the rates have

been pegged a bit too high. Some that were taken up include three

buildings of 5,000m2, 7,000m2 and 10,000m2 along Bancroft Road

and Brownlee Street. Meanwhile, two sets of 5,000m2 buildings

are almost done at Brownlee Street and waiting to be leased for

$115/m2 to $125/m2.

Acacia Ridge, Larapinta, Salisbury, Coopers Plains, Crestmead, Berrinba & Browns Plains

Sales: James Dimsey (0407 580 052)

Leasing: Nathan Butler (0403 235 173)

At A GLANCE:

• Sales activity in Acacia Ridge limited by a lack of stock

• Acacia Ridge’s leasing market on the boil

• The only current Larapinta development activity is in the

Motorway Business Park

• Sales in Salisbury a bit slow but higher than six months ago

• Leasing space in Salisbury is also scarce but not impossible to

find

• Coopers Plains see slow sales but better rental market

• Berrinba earmarked to be the southside’s “next big thing”

The more established part of Acacia Ridge, ie around Bradman

Street, saw a great deal of interest in property for sale, but it

remains very tightly held, especially in medium to large sizes. Those

looking for smaller units might be in luck, however, as there are

some on the market at Overlord Place, including an investment

for $527,000.

Leasing deals have been quite a bit more plentiful due to much

higher availability, a pace that should continue for the rest of the

year, e.g. a 3,000m2 metal clad secondary office/warehouse was

rented for $85/m2 at 32 Peterkin Street, a fairly cheap rate in

today’s market, while a 4,600m2 office/ warehouse with racking is

coming up along Fox Road, at $85/m2 to $95/m2. Those needing

very large space should check out the 47,000m2 ex-Woolworths

site at Bradman Street, which is going for $100/m2.

The newer part of Acacia Ridge, i.e. in and around the Paradise

Road Industrial Park, has seen a few freestanders come on line,

then sold quickly, an example being a 1,492m2 office/warehouse

selling for a benchmark $2.3 million plus. Similarly, all but one

unit in the Mahogany Court complex has been bought, while a

tenanted investment property at 120 Gardens Drive was onsold by

the original developer in a deal that yielded around 7.5%.

Presently there are only around four vacant buildings left for sale in

this estate including a 1,996m2 office/warehouse at 123 Gardens

Drive, but anecdotal evidence shows that there may be more on

the market by late winter.

The leasing market over the last six months has been very busy,

mainly for freestanders. Cases in point include the takeup of two

office/warehouses totalling 4,789m2 at 1 at 2/20 Buttonwood

Place, while 1,836m2 of space at 3/20 Buttonwood Place was also

rented, leaving only one building left vacant in the complex. Rates

were between $110/m2 and $115/m2. In addition, a 255m2 unit

at 3/23 Gardens Drive was leased for $123/m2, while a 1,120m2

clearspan office/warehouse at 8 Gardens Drive achieved $115/m2.

Secondary stock, when found, moves quickly.

The next six months should see continued movement, especially

as three more lots are being developed in the estate, and lessors

will enjoy longer term leases of up to 10 years because tenants are

anxious to get their rates locked in.

Further south, in Larapinta, the only development activity is taking

place within the master planned Motorway Business Park, an

area that includes Distribution Street, Commerce Place, Logistics

Place and Paradise Road. On sale are office/warehouses between

2,445m2 and 7,226m2, with more to be ready around September.

Meanwhile, there remains land from 4,000m2 to 15,000m2 for

D & C opportunities or banking in the Radius Industrial Park on

the other side of the Logan Motorway, where not yet built office/

warehouses between 3,500m2 and 6,500m2 can be leased for

$110/m2 to $125/m2 if precommited.

Both of these area’s will be enhanced upon the completion of

an overpass across the Logan Motorway and the upgrading of

Paradise Road to B-Double standards. Unfortunately the road is to

be closed for six months during the upgrade.

While sales activity in Salisbury has been slow over the last six

months, it was higher than the six that preceded them, a period

that saw a 10% jump in prices. Sales include the benchmark

$845,000 paid for a freestanding 455m2 office/warehouse at

79 Flanders Street, while the $720,000 it took to purchase a

397m2 unit at 7/128 Evans Road was a benchmark for that type.

Additionally, there was the sale of large complexes of up to 4,000m2


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on McCarthy Road, Jaybel Street and Evans Road. Secondary stock

that was leased included a 1,800m2 office/warehouse with crane

at 268 Evans Road, which went for $90/m2.

Planned to come on line later in 2008, is development on land at

the front of a 15,380m2 site at 221 Evans Road, which is to offer

three office/warehouse/showrooms with a GFA totalling 4,215m2

and good exposure. The owner/occupier responsible for the project

will be subdividing the remainder of the parcel and has already

received strong interest.

Leasing space in Salisbury is also scarce but not impossible to

find. The largest on offer is an older 14,000m2 building at Textile

Crescent, which can be split into various configurations for long

or short term tenancies. Priced at around $80/m2 to $85/m2, it is

presently used by Crown Mattresses, Far Pavilions Furniture and,

previously, Linfox. Smaller tenancies will be available at the above

noted 221 Evans Road for a rumored $180/m2, a rate yet to be

confirmed. Other secondary stock can go for up to $95/m2.

Coopers Plains has only seen a little sales activity, although a

couple 250m2 units at 256 Musgrave Road were sold. Present

vacancies for sale include a three unit development at 42-50

Richlands Avenue, which offers sizes from 450m2 to 550m2 and

already has one precommited. In addition, a 1,552m2 office/

warehouse on 2,953m2 of land at 877 Boundary Road has been

receiving strong enquiry.

Rental takeup was a bit more active and saw a number of deals

at Musgrave Road, Meadow Avenue and Lensworth Street, where

newer small to medium sized stock is achieving $115/m2 to $120/

m2, while secondary can be picked up for between $90/m2 and

$95/m2. Anything large turns over the quickest, an example being

the two new tilt slab office/warehouses at 55 Musgrave Road, one

of which was committed to even before it was finished. Both are

occupied for rates from $110/m2 to $120/m2.

There have been no sales in Crestmead, generally because it’s so

tightly held, although some smaller lots have started to come onto

the market and there is an Expressions of Interest campaign now

underway for a 5.44 ha industrial facility at 26 Platinum Street,

once occupied by the Recycling Paper Factory. The latter provides a

10,100m2 warehouse, 7,160m2 of manufacturing area and 950m2

of office, as well as offering the ability to split tenancy areas, a

10 tonne crane and a low 35% site coverage. Meanwhile, the

Queensland Government Estate has some land between 12,000m2

and 1.5 ha, but excludes developers.

Leasing action in Crestmead has been constrained by a lack of

stock, however a wide variety of spaces have recently come on line

or soon will. These include three freestanders of around 2,000m2

at the corner of Magnesium Drive and Platinum Street, each going

for $125/m2, as well as the above noted site at 26 Platinum Street.,

where space can be rented for $110/m2. In addition, Jack van Riet

in conjunction with the Logan City Council, will be presenting

space for rent at Browns Plains Road in sizes from 2,000m2 to

15,000m2, at around $100/m2 to $120/m2, depending on size. It

already has a commitment from DHL to move in midyear.

The suburb of Berrinba is going through major changes and, as

part of the process, a new development is evolving: The Loganlink

Industrial Estate at the corner of Gilmore Road and Pagewood

Street. On 45 ha of land assembled by Indigo Group, this master

planned estate is divided into two precincts, one north, the other

south. Stage 1 to the south has already commenced construction

and will provide a 7 lot subdivision offering quality office/

warehouses from 300m2 to 1,800m2, while the balance of the

estate will start in 6-8 months and intends to offer a range of stock

for smaller developers to owner/occupiers to tenants.

It’s anticipated that stock in Loganlink will be taken up quickly since

it enjoys direct access from Wembley Road and is only seconds

to the Logan Motorway and its connection to the burgeoning

Southern Corridor. In addition, the estate is less than 10 minutes

from the blue chip suburb of Acacia Ridge while the Australia

TradeCoast precinct can be reached in less than 25 minutes.

Further east, is Australand’s Trio Business Park, which will provide

in excess of 17 ha of MIBA designated land.

Browns Plains had little sales activity, save for land in Australand’s

South Link Estate, a property anchored by the Coles Distribution

Centre that saw these parcels go for around $400/m2. It’s

anticipated this land will be onsold during the next six months as

roadworks there are finished and buildings start coming out of

the ground.

That being said, it should be noted that this suburb is also saturated

with small units for lease, and more are becoming available. They

range in size between 200m2 to 650m2, are priced at $110/m2 to

$140/m2, and are rented much more slowly than more popular and

scarcer freestanders.

Northgate, Banyo, Geebung, Virginia, Zillmere, Brendale, Clontarf, Deception Bay, North Lakes & Narangba

Sales: Greg Woods (0409 305 224)

Leasing: Richard Hall (0408 199 919)

At A GLANCE:

• Stock for sale in Brisbane’s northside remains highly sought

after but hard to find

• Northgate/Banyo saw a holiday driven softening of leasing

activity, but is back to normal

• Brendale, now in the new Moreton Shire, has seen its leasing

rates jump to Brisbane levels

• Popular estates in Deception Bay, North Lakes and Narangba

increasingly attracting businesses from Clontarf

The Northgate/Banyo precinct remained in high demand but had

little available stock to buy. Among the few sales that did occur

was the $600/m2 paid for a 1,309m2 block at 5-9 Frederick Street,

which received 15-20 enquiries and will soon see a tilt slab building

coming out of the ground. Similarly, a 900m2 office/warehouse at

1/69 Crockford Street was bought vacant by an investor before

auction for $1,580,000. It received 26 pre-sale enquiries and was

tenanted immediately after the transaction was completed, an

indication of not only the strength of the leasing market here, but

how buying empty then looking for a tenant is a viable, and possibly

less expensive, tactic. In addition, Australand has purchased around

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9-10 ha of the old Golden Circle cannery at Earnshaw Road and will

develop multiple lots on two parcels totalling 80,000m2 within it.

Now undergoing site preparation, it will offer purpose built office/

warehouses to suit single or multiple users.

Leasing activity saw a holiday driven softening, leading to a

stabilisation of rates, but no change in vacancy levels. During this

period, high quality secondary or new units had been receiving

a relatively low $125/m2, while a number of secondary office/

warehouses remained vacant no matter what the asking price.

Since then, it has returned to normal, i.e. good demand and limited

stock. The next six months, however, should see some more space

coming onto the market, albeit mostly older buildings between

1,500m2 and 3,000m2, a supply that will be added to when 200m2

to 600m2 units in the Hub Business Park at the end of Nudgee Road

come on line mid year. It’s expected these will be picked up quickly

due to their high office component and anticipation of the benefits

that will be afforded by the Gateway Arterial upgrade.

The Geebung/Virginia area has also been relatively tightly held,

though enjoyed a few more sales than its neighbours. For example,

1,000m2 of land with older secondary stock at Granite Street was

purchased for just under $800,000; a 120m2 unit on Prosperity

Place was bought by an owner/occupier for $260,000, while an

old house and partly constructed warehouse on Matheson Street

was sold to a developer for refurbishment. Matheson Street is

being revitalised from a once tired, traditional industrial strip into

one with a more high end look...a change that will most likely see

prospective purchasers or renters faced with dearer prices and rates.

In addition, Applied Surfaces Australia has paid $2,230,000 for an

industrial property at 21 Saltash Street in an off market transaction.

It features an 800m2 standalone office/warehouse on 4,957m2 of GI

zoned land and includes a three bedroom residence as well as a DA

approval for a further 2,000m2 of building. The next six months will

find this precinct with only a limited amount of sales stock on offer

and anything that becomes available should go quickly.

Leasing activity has been very slow since most tenants seem happy

with their location here and rates, which they believe is of better

value than elsewhere. The same for Zillmere.

Brendale has seen quite a bit of building activity during the last six

months, with, for example, the Byrnes Development Group putting

up a number of industrial and commercial units at its property

on South Pine Road, at Leitchs Road. Sizes vary from 150m2 to

1,000m2, with prices dependant on proportion of office and extent

of frontage. Byrnes also has a couple of units available at 27-29

South Pine Road, in its Strathlink Industrial Estate, a project that is

up towards the Strathpine Railway Station.

Meanwhile, the Investa Group has paid Pradella $110/m2 for the

85 ha ex-CSR site at Leitchs Road and is selling blocks of land in

Stage1 of this five stage development for $320/m2 to $350/m2. When

these are all taken, the owner will progress to the next stage and so

on. In addition, Van Reit Architects are continuing with its proposal to

build high grade commercial units on property at Leitchs Road.

Rental stock remains very tightly held and when something does

become available in this popular industrial suburb it’s often at rates

that no longer offer a competitive price advantage over the rest

of Brisbane.

There’s been few sales in Clontarf’s Redcliffe Gardens Industrial

Estate, and whatever was picked up mostly involved deals

organised by local agents. Meanwhile, it continues to suffer from

glut of smaller units, as some potential purchasers have chosen,

instead, to locate at Deception Bay, North Lakes and Narangba.

That being said, these units are gradually being taken up, just more

slowly than was hoped for.

While all but a few parcels are left in Deception Bay’s Bay Link

Business Park along Lipscombe Road, a number of buildings

between 650m2 and 1,200m2 recently came out of the ground

and were generally taken up once completed at around

$1,650/m2. Others are under construction and should be available

for the same price.

North Lakes is seeing a couple of developers doing some D & C

and spec building on a 55 ha parcel in six stages over a 5-6 year

period. The first stage is 8 ha and is offering lots from 1,500m2 to

3,000m2, or larger if amalgamated. Land here has strict covenants

that require advanced land and street scaping, which will drive up

costs, but also propel jumps in asset value.

In Narangba, the NOW Business Park has units for sale between

150m2 to 400m2, at around $2,000/m2, while a couple of freestanders

from 1,000m2 to 2,000m2 are available for slightly less.

Slacks Creek, Underwood, Meadowbrook, Loganholme, Kingston, Yatala, Ormeau & Stapylton

Sales: Myles Clentsmith (0421 957 818)

Leasing: Pat Kerruish (0422 702 504)

David Knox: (0408 548 281)

At A GLANCE:

• Slacks Creek/Underwood sales generally involve high prices,

with little for lease

• Meadowbrook to have more than enough small to medium

sized units to receive Slacks Creek/Underwood overflow. Land

running out

• Loganholme has many units on the market but few

freestanders

• New freestanders coming up in Kingston

• YEA to achieve Southport prices

Despite the Slacks Creek/Underwood precinct’s lack of available

stock in most sizes some sales activity did exist, particularly from

investors justifiably unafraid of buying vacant buildings then

seeking a tenant. A case in point was the $1,080,000 paid for a

freestanding 755m2 office/warehouse at 12 Lapis Street, which

was rented to a quality business for a healthy $107/m2 only three

months after settlement.

There are, however, a number of vacant besser block standalones

scattered around the suburbs in the 400m2 to 600m2 range, with

some achieving benchmark prices of $1,500/m2 to $1,600/m2....

or soon will be. There’s also a few secondary buildings to choose

from, and these, too, come with high prices.


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Developable land here is almost impossible to find, and what

does exist is generally infill. A possible example is the rumored

$420/m2 paid for a 1,566m2 block with a DA for an 800m2 building

at Smallwood Street, which would be, if true, comparable to prices

in the Port of Brisbane.

This lack of land means no new buildings have gone up, leaving

little stock available for rent. When found, newish units are going

for $125/m2 to $130/m2, while those willing to accept secondary

will see nothing under $110/m2.

Those who find it impossible to locate in Slacks Creek/Underwood

tend to fall back on Meadowbrook, with its relatively high

number of vacant units and good level of construction activity...at

least for smaller to medium spaces, as only a few larger buildings

are available or anticipated. This overflow, accelerated by the

suburb’s other virtues, like proximity to the Logan Motorway, has

led to a number of sales at good prices.

Examples include the benchmark $1,900/m2 paid for a well exposed

2,035m2 freestander with high office component at 1/5-7 University

Drive, in the Campus Business Park, while a 287m2 unit at 5/3-19, in

the same estate, was sold for an equally benchmark $1,840/m2.

When found, land is going for premium prices, with smaller parcels

achieving $310/m2 to $350/m2. Meanwhile, a developer bought

a 6,751m2 lot at 90 Meakin Road for $310/m2. Similarly, hard to

come by secondary stock is also commanding hefty prices.

This year should see the construction of more buildings for sale or

lease in developments at Meakin Road, Blue Eagle Drive, Nestor

Drive and Ellerslie Road. These include 13 units from 150m2 to

300m2 at the corner of Nestor Drive and Nealdon Drive, which will

be priced from $1,750/m2 to $2,300/m2 if purchased, or $135/m2

to $150/m2 when leased. Meakin Road also has for lease a hard

to find medium sized freestander going for a minimum $125/m2,

which, if achieved, would be a benchmark.

Later in the year, Stage 2 of the Meakin Road Business Park will

present 12 lots to the market in sizes from 3,000m2 to 1 ha, while

the prices are yet to be released, they’re expected to be more than

$300/m2 as land is starting to run out.

Loganholme has a number of units on the market, some with

a much sought after high office component, and has seen many

sold. Examples include 192m2 to 768m2 units in a complex of 49

at 11-17 Cairns Street, which are achieving around $1,800/m2 to

$1,900/m2, while more are being taken up at Henry Street and

Allan Street in the old FA Pigeon Estate, where office/showroom/

retail spaces from 200m2 to 300m2 are being sold quickly for up

to $2,000/m2.

Freestanders, on the other hand, remain very tightly held, and

when found, tend to be sold off market. There is generally no

secondary stock available.

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Developable land here is almost impossible to find, and what

does exist is generally infill. A possible example is the rumored

$420/m2 paid for a 1,566m2 block with a DA for an 800m2 building

at Smallwood Street, which would be, if true, comparable to prices

in the Port of Brisbane.

This lack of land means no new buildings have gone up, leaving

little stock available for rent. When found, newish units are going

for $125/m2 to $130/m2, while those willing to accept secondary

will see nothing under $110/m2.

Those who find it impossible to locate in Slacks Creek/Underwood

tend to fall back on Meadowbrook, with its relatively high

number of vacant units and good level of construction activity...at

least for smaller to medium spaces, as only a few larger buildings

are available or anticipated. This overflow, accelerated by the

suburb’s other virtues, like proximity to the Logan Motorway, has

led to a number of sales at good prices.

Examples include the benchmark $1,900/m2 paid for a well exposed

2,035m2 freestander with high office component at 1/5-7 University

Drive, in the Campus Business Park, while a 287m2 unit at 5/3-19, in

the same estate, was sold for an equally benchmark $1,840/m2.

When found, land is going for premium prices, with smaller parcels

achieving $310/m2 to $350/m2. Meanwhile, a developer bought

a 6,751m2 lot at 90 Meakin Road for $310/m2. Similarly, hard to

come by secondary stock is also commanding hefty prices.

This year should see the construction of more buildings for sale or

lease in developments at Meakin Road, Blue Eagle Drive, Nestor

Drive and Ellerslie Road. These include 13 units from 150m2 to

300m2 at the corner of Nestor Drive and Nealdon Drive, which will

be priced from $1,750/m2 to $2,300/m2 if purchased, or $135/m2

to $150/m2 when leased. Meakin Road also has for lease a hard

to find medium sized freestander going for a minimum $125/m2,

which, if achieved, would be a benchmark.

Later in the year, Stage 2 of the Meakin Road Business Park will

present 12 lots to the market in sizes from 3,000m2 to 1 ha, while

the prices are yet to be released, they’re expected to be more than

$300/m2 as land is starting to run out.

Loganholme has a number of units on the market, some with

a much sought after high office component, and has seen many

sold. Examples include 192m2 to 768m2 units in a complex of 49

at 11-17 Cairns Street, which are achieving around $1,800/m2 to

$1,900/m2, while more are being taken up at Henry Street and

Allan Street in the old FA Pigeon Estate, where office/showroom/

retail spaces from 200m2 to 300m2 are being sold quickly for up

to $2,000/m2.

Freestanders, on the other hand, remain very tightly held, and

when found, tend to be sold off market. There is generally no

secondary stock available.

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continued page 29

As might be expected, any vacant land with exposure to the

M1 commands a premium price of nothing less than $450/m2.

Indeed there are rumours that one owner was offered $650/m2

and turned it down. Land presently under development includes

lots within the above mention Pigeon Estate, and DJ Builders have

plans to put up a much needed 2,500m2 freestander at 27 Henry

Street and is asking a possible benchmark $2,500/m2. On the

market for $380/m2, is a 4,307m2 parcel at 9 Cairns Street, which

would probably see any new owner put up a freestander as that’s

where the demand lies.

While Kingston has seen few secondary sales due to a lack of stock,

a bit of land is coming on line at Mudgee Street, where Watpac has

developed GI zoned lots from 5,000m2 to 2 ha and saw most of

them sold for $300/m2. Once the roadworks are completed here,

it’s expected buildings will come out of the ground in the next six

to eight months and be taken up quickly due their exposure to the

Logan Motorway, Also sold was a 105m2 building on 1,356m2 of

land at 491 Kingston Road, which was purchased at auction for

$380/m2 due its future redevelopment potential.

The next six months should see a continued shortage of secondary

stock and no units built unless they’re very competitively priced.

Anticipating this precinct’s high future demand, the Yatala Enterprise

Area (YEA), which includes Yatala/Ormeau/Stapylton, has seen

a number of land transactions, e.g. the around $140/m2 paid for a

4 ha Industry1 zoned lot, albeit unserviced, at 170 Burnside Road.

Other land sales include the approximately $325/m2 received for a

6,300m2 site at 23 Binary Street, in the old Computer Road Estate,

which was bought by a local developer who intends to put up a

3,000m2 office/warehouse for a specific tenant. Then there’s the

$5.67 million paid by the Insight Group for a 4.05 ha Development

Approved parcel at 154 Burnside Road, which will see a 23,000m2

facility built and geared towards companies in the concrete

batching and precast industry.

Land on the market includes a 4 ha site on 168 Stapylton-Jacobs

Well Road, which has a DA for 8,000m2 of building and an asking

price of $200/m2, while a 4 ha site at 145 Quinns Road East is for

sale at around $170/m2.

Those looking for parcels in existing estates, should note that

there’s some left in Stockland’s well exposed M1 Yatala Enterprise

Park at Darlington Drive and Elderslie Road, next to the Carlton

United Brewery....a 12 lot development that has on offer land from

4,800m2 to 1 ha, at prices from $400/m2 to $440/m2. It’s expected

buildings here will be coming out of the ground in 6-12 months.

Stage 3 of Property Solutions’ Enterprise Business Park has sold

almost 70% of its 30 lots for a healthy $340/m2 to $450/m2,

depending on size and exposure to the M1, but that still means

some are available. The Centra Park Industrial Estate, on the other

hand, has completely sold its allotments, and has DAs and BAs in

place for all of them. These transactions include some of last year’s

resales, when, for example, one large parcel sold for $350/m2, a

price that would hover around $380/m2 to $400/m2 if done today.

Meanwhile, a development at Mavis Court will be coming on line

within the year and offer 52 units from 100m2 to 600m2, while 2

Links Drive in the Centra Park Industrial Estate will have 13 office/

warehouse/showroom units, some ranging from 200m2 to 300m2,

and will be taken up quickly. Also in Centra, there are DAs for

2,000m2 to 3,000m2 buildings. Together, they should go some way

in addressing the shortfall of industrial stock in these sizes.

The next six months should see a number of large buildings as well

as units come out of the ground, with the latter starting to approach

the $2,000/m2 being paid for stock closer to the heart of the Gold

Coast, like Gaven or Southport. This hike is, in large part, due to the

influx of Gold Coast businesses feeling priced out of that market and

finding the YEA more attractive. Unfortunately for them, such a high

demand coming all at once also pushes up prices.

The YEA has seen an abundance of small units on the market, and

more have just become available or soon will be at Octal Street,

Notar Drive and Blanck Street, as well as in the above mentioned

Motorway and Centra estates, which will also be able to provide

some freestanders between 1,200m2 to 8,000m2 and going for

$125/m2 to $145/m2. While this is welcome, there will not be

enough of them to meet an ever higher demand and should drive

up rates another 10%, on top of the 10% they jumped during the

last six months.

Rocklea, Acacia Ridge (Achievement, Success & Colebard Streets), Archerfield, Moorooka, Yeerongpilly/Yeronga & Sherwood

Sales: Rod Hewitt (0417 02 04 06)

Leasing: Daryl Sluggett (0418 782 271)

At A GLANCE:

• Rocklea, Acacia Ridge and Archerfield remain very tightly held

and getting good prices or rates for whatever comes onto

market

• Rates there should be reaching their peak over next six

months

• Buildings with adequate yard space are very hard to find

• The opening of the connector between Balham and Beatty

Roads has reduced traffic congestion and increased access to

Archerfield and Rocklea

• Moorooka’s renovated buildings attracting businesses forced

to relocate from city fringe, but there’s not enough of them

• Anything in Yeerongpilly/Yeronga that comes onto the market

is snapped up for prices and rates that generally exceed

vendor’s or lessor’s expectations

• They have leapt more than 20% above the normal growth

rate in one year and has seen every transaction achieve a new

benchmark

• Little activity in Sherwood, while owners of burned down

Index Business Park undecided whether to sell or rebuild

Little has occurred in Rocklea’s sales market as it continues

to suffer from a lack of stock, though whatever does become

available is generally purchased by an expanding local owner/

occupier needing to stay near this suburb’s other trucking or

technology businesses. Additional types of sales include a local


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29


investor paying a total of $1,485,000 for two office/warehouse

units in a complex of nine at 1 & 7/29 Collinsvale Street. The new

owner will be receiving $99,660/m2 from two tenants, a funeral

parlour and nationwide technology firm.

Rocklea’s leasing market has been quite brisk for what does exist,

with rental rates jumping to match the scarcity and demand. A case

in point was the healthy $127/m2 paid to occupy a 5,000m2 spec

building at 49 Boundary Road. Costs should peak over the next six

months, however, as tenants reach the limit of what they’re willing

to pay. Meanwhile, availability problems for very large users should

ease somewhat once a 11,000m2 building comes on line mid year

at Donaldson Road for $105/m2 to $115/m2, while new stock of

significant sizes soon will be ready for occupancy elsewhere on

Donaldson Road.

Sales activity in the pocket of Acacia Ridge that encompasses

Achievement, Success & Colebard Streets has been similar to

Rocklea’s, in that there’s a lack of stock, or in this case, when there

is some, has too little of the yard space needed by mining boom

related industries, engineering firms and transport companies. This

shortfall should see an increase in prices over the next six months,

although this situation may be eased after that when developers

erect new stock at Lombank Street. Leasing activity here is also

constrained by a lack of choice, though one 1,400m2 office/

warehouse with 4,000m2 of yard at Colebard Street is coming on

line, but should be rented quickly.

Sales activity in Archerfield is similarly constrained by a lack of

stock, particularly freestanders with yard but when something

does become available it’s usually picked up for prices higher than

expected, a case in point being the generous amount paid for two

buildings totalling 4,380m2 on 1.2 ha of GI land at 117-123 Beatty

Road. The next six months should see more of the same.

Archerfield’s leasing market only saw a few transactions due to a

lack of stock. Hopefully, this will be eased when more come on line

at Wirraway Place and along some other arterials. These should

be in the 2,000m2 to 4,000m2 range and see high demand taking

them up quickly for $110/m2 to $130/m2.

Meanwhile, it is benefiting from the opening of the connector

between Balham and Beatty Roads running along the airport, as

it is taking a lot of strain off Riawena Road, which was impossible

to traverse much of the time. This result is to give cars and trucks

better access to the outer side of Boundary Road via Beatty Road

and make the area, including Rocklea, more desirable, albeit not

with higher prices.

Moorooka, with its traditional motor trade orientation, is only

recently being considered by businesses forced to relocate from

the city fringe and needing a high office or retail component...a

change of view, in large part, brought about by the renovation of

some older industrial older buildings into this style. Unfortunately,

the volume is nowhere near enough to meet demand as stock

remains tightly held and nobody wants to leave here.

The tightly held Yeerongpilly/Yeronga industrial precinct is

basking in its ever stronger popularity as part of the new city

fringe that stretches from here to Salisbury, an aspect accentuated

by a proximity to the Tennis Centre and high end residential

development along the river. The result is that anything coming

onto the market is snapped up for prices and rates that generally

exceed vendor’s or lessor’s expectations. In fact they have leapt

more than 20% above the normal growth rate in one year and

has seen every transaction achieve a new benchmark, even for

secondary stock, which is now going for amounts that new stock

would have been getting just six months ago. While this area

should increase in demand over the rest of the year, its price and

rate hikes are expected to slow. Meanwhile, those moving in or

looking for space there now consist of businesses looking for

buildings with higher office components and include purchasers

or tenants related to photography, computer repairs, printing and

alcohol distribution.

Sherwood continued to have few sales or leasing activity due to

a lack of stock, a shortage made even more severe as the result

of last year’s burning down of the older style 15,000m2 Index

Business Park warehouse at Sherwood Road. This facility contained

90 businesses and 400 self storage users, all of whom had to look

for, but few found, alternate spaces...and when they did, it most

likely wasn’t around here. Meanwhile, the Park’s owners are still

contemplating whether to sell or rebuild, all the while aware that

their anchor tenant, Kimberly-Clark, has moved to a 10,000m2

facility at Industrial Crescent in the Paradise Road Industrial Estate

and is paying over $100/m2.

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MS Projects

Property Development &Development Management

Specialising in Industrial Property

99 Annerley RoadWoolloongabba Qld 4102

Office 07 3844 7388Fax 07 3844 7399

www.msprojects.com.au


A recent international urban design conference on the Gold Coast

highlighted three major areas of change that our cities and towns

are facing.

Firstly, the climate change as a phenomenon is already abundantly

clear, whether induced by human actions or is part of a natural cycle.

At A GLANCE:

• Climate change is a reality and will not be quickly stabilised

• The supply of hydrocarbon energies will decline

• CO2 emissions / climate change is intimately coupled with

energy security

• We are facing big challenges to the way we manage our cities

and towns

• We need to acknowledge these new circumstances, NOW

Secondly, the sources and security of energy which is absolutely

vital to the way people live are certainly likely to change. The

changes will be triggered either by our endeavours to manage

the drivers of climate change, our CO2 emissions; the depletion

of supply of liquid hydrocarbon fuels and their consequent higher

prices or both.

Thirdly, an increasing number of the Australian population will be

the older generation. We are likely to be living longer and there

is already a clear trend that our households are predominantly

of ones and two’s rather than families of three’s or more (while

ironically occupying more domestic space per person). All this

awaits us in the next 10 to 20 years – a very short time in the life

of cities.

Cities have had to deal with changing conditions in the past.

However, few changes in history have approached them at the

rate they are advancing upon us now. Yet, we have chosen to

ignore these realities like symptoms of a nasty disease. We have

entered a state of denial. We are making furtive and superficial

provisions for the changing future such as minor gestures towards

public transport, planting some trees to offset carbon emissions

and optionally installing a few water tanks. However, this is largely

equivalent to taking the foot off the accelerator while our brakeless

car hurtles towards the cliff.

Let us be optimistic that the future will offer some redeeming

options. But should even an optimist not have a PLAN B? At the

moment we are relying on faith alone that somehow everything

will turn out right. However, retrofitting cities and towns is usually

an immensely expensive and often impossible business. To say that

we will fix it when the day comes is an option we will all regret. We

need to revise our thinking about cities and towns NOW!

As we face the challenging future, the most fundamental of

mindset shifts is to realise that cities and towns are not merely

a stock of real estate, built property as a type of asset or capital,

all held together with engineering infrastructure and transport

arteries. It is all those things but primarily it is the stage setting of

life for most of us. It is the background ‘scenery’ and props against

and around which we participate in social and cultural interactions,

live out our mortal existence, seek happiness and fulfilment.

We often complain about inconveniences, lack of amenities and

opportunities or blame the authorities for creating places and

conditions that we would rather not have. The only way we will be

able to collectively respond to climate change, energy issues or our

new social structures is to realise that WE ourselves are largely the

problem as well as the major part of the solution.

As a new measure of urban quality and planning objective, I

suggest that every part of a city or town be evaluated thus: if your

car fell out of action for a week or more or you were unable to

drive for an extended period, could you meet most of the essentials

of your daily, weekly or seasonal needs by walking, cycling or using

public transport (which includes taxis)? This is not to imply that

we should forgo all means of private transport. However, this test

would transform the paradigm of scale and thinking about cities

and towns.

Our most eminent social researcher Hugh Mackay, writing in

‘Advance Australia Where?’ says “If we ultimately had to choose

between material prosperity and survival, which way do you think

we would jump? If we know the answer, why not act now, so we

never have to face that choice.” That is exactly the type of choice

that confronts our towns and cities right now. Unless we adopt

a different mind set about them, we will not only be creating an

uncomfortable future for ourselves but leaving a difficult legacy for

our children and grandchildren. Is that really what we want?

If we are to effectively deal with climate change, energy security

and cost as well as demographic adjustments, we need to rethink

the way we make, use and live in cities and towns – and we need

to do it NOW.

Juris Greste OAM

Juris is an urban designer with an architectural background and

over 50 years of professional experience as a consultant. He has

been a full time educator at QUT for about 12 year since 1977 and

has continued as a part time lecturer and contributor ever since.

He was an instigating member of the Urban Design Alliance of

Queensland - a multi-disciplinary association of built environment

professional groups; is the secretary of the Australian Institute of

Urban Studies Qld. for the eighths year and recipient - 2004 Year

of the Built Environment exemplar award. In 2007 he was awarded

the Order of Australia Medal (OAM) “For service to urban design,

particularly through raising community awareness of the need

for high quality and sustainable environments, to professional

associations and to education.”

Rethinking our cities and towns.

GUEST COMMENTARY

Contact Scott Langford • 0407 603 063 • [email protected]

We give you the best possible result.

www.kingco.com.au

King & Co Property Management,

the only choice for industrial property management.

TAKE A CLOSER LOOK


continued page 33

Queensland’s illusory regional plans are only matched by its invisible state development plans

Before consigning them to the environment bin, re-reading

planning reports, articles, speeches and press clippings accumulated

over the course of more than forty years’ involvement in and

around town planning can be a curious emotional experience: a

blend of nostalgic reminiscences of people and places, frustrated

aspirations, and some modest achievements. It can also be a

depressing reminder of things which should have happened but

haven’t happened, and how the explanation can be traced to some

purely fortuitous circumstances peculiar to Queensland.

At A GLANCE:

• Queensland has historically suffered a lack of State level planning

• Goss over-relied on “Mexicans” and academics for planning advice

• The legal lobby has had a disproportionate influence on

planning, particularly the appeals process

• Beattie/Bligh finally attempted to overcome self inflicted

infrastructure backlogs, but too reliant on illusory PPPs

• Planning shortfalls can be rectified but not on the cheap or on

a voluntary basis

For example, the absence in the present structure of Queensland

government of a clearly visible commitment to state-level planning

and development and policy-making reflects the fortuitously

disproportionate influence of local government. And another

disproportionate influence has been that of the legal lobby,

which likewise originated fortuitously, and has since become

increasingly pervasive.

The end of the Bjelke-Petersen era

was a watershed which seemed to

promise enlightened new approaches to

Queensland’s planning and development.

To the looming problems in the south-

east, for example, and the need for more

community participation, a more open

and intelligible environmental planning

process, and an accessible planning

appeals system. Plus more recognition

of the diminishing affordability of

housing. But the Goss government achieved very little. New-found

“economic rationalism” inspired the closure of some country rail

lines. But it didn’t inspire the expansion and upgrading of mainline

rail to divert long-haul heavy freight from overcrowded roads. Or

the upgrading of quality passenger services to relieve the pressure

on airlines and airports. The quality of senior Queensland public

servants was under-valued, and the government chose to be

influenced by imported “Mexicans” (from south of the border),

and by academic theorists.

Above all, however, the Goss government’s performance was

a reflection of fortuitous historical factors, and party political

differences are not a significant explanation.

There were promises that there would be no “wall-to-wall

suburbia” linking Brisbane and the Gold Coast. One initiative

was the Regional Open Space System (ROSS), but it didn’t survive

rural landowner resistance. And efforts to persuade the score of

south-east Queensland local governments to cooperate in any

enforceable planning of the region encountered opposition and

suspicion from the local government lobby. Councils clung to

the coat tails of “their” Department of Local Government, and

strongly opposed anything in the nature of a “state planning

authority” akin to the unlamented SPA of NSW. In the mid-1990s

the nett result of innumerable conferences, plus a great deal of

research contributed by community groups, was an unenforceable

SEQ “Regional Framework for Growth Management”, based on

“voluntary cooperation and communication.”

This fatuous technicolour document was not an indictment of

local government intransigence so much as an indictment of the

absence of any agency within the structure of government with the

power to implement and enforce regional plans in pursuance of

state planning and development. And this remained the situation

until the increasingly critical situation in the south-east again

generated strident public and media agitation around 2000.

Local government councils in Queensland have historically enjoyed

greater powers, including a general competence power, than their

counterparts in the other States. This in

itself is a virtue, but, curiously, not since

the colourful days of “Big Russ” Hinze

has it been reflected in the status of the

state department of local government

responsible for local government town

planning. Its ministerial head has

customarily been at or near the bottom of

the cabinet pecking order and has never

been influential in determining state-level

planning and development. At the state

level, the COG oversaw major projects

rather than pursued any declared plan of state development.

Queensland did not have, and still does not have, an unambiguously

defined department of state planning and development responsible

for anticipating infrastructural requirements, and for sharpening

the focus of the nebulous “regional” town planning initiatives now

emerging in the aftermath of local government amalgamation.

The legal lobby’s influence began to flourish in the mid-1970s

because of the purely fortuitous conferring of planning appeals

“There were promises that there would be no ‘wall-to-wall suburbia’ linking Brisbane and

the Gold Coast.”

GUEST COMMENTARY


33

continued page 34


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jurisdiction on the District Court (renamed the Local Government

Court) by the Bjelke-Petersen government in order to thwart the

circumvention by the Clem Jones City Council of decisions of

its planning ministers. Thus, fortuitously, Queensland acquired

a unique planning appeals forum, (now called the Planning and

Environment Court), in which the substantive merits of town

planning proposals were argued adversarily, and at great length

and cost, in formal courtroom proceedings. In other words planning

appeals were thereafter decided by judges – notwithstanding

the fact that very few town planning appeals involved genuine

questions of law.

Labor’s pre-election promise of a planning appeals tribunal in lieu

of the Local Government Court did not survive the legal lobby’s

pressure upon deputy premier Tom Burns. Prior to his decision,

the merits of a tribunal system were actively debated, and they

have been debated since. But Queensland lacked experience of

a planning tribunal, and only one senior town planner had had

extensive professional experience of interstate practice and could

cite the time and cost savings of a tribunal system. His was a lonely

voice. Like lawyers, some town planning consultants also have

a vested interest in a judicialised appeals system which permits

adversarial contests between “our side” and “their side” to be

spun out lucratively for weeks - contests in which there is an

obligation to tell the truth, but not necessarily the whole truth,

and no over-riding obligation to arrive at the best possible planning

solution in the given circumstances.

While the promised planning appeals tribunal did not eventuate,

the Goss government nevertheless commenced the promised

reform of town planning legislation, a task unfortunately which

enthusiastic but relatively inexperienced town planning officers

undertook without very clearly identifying the end objectives. More

recourse to Why?, the most potent interrogative in the language,

would have reduced much of the resulting verbiage. The influence

of the legal lobby became apparent, particularly in the spelling

out of common sense administrative processes and procedures in

extraordinary detail and opening them up to legal interpretation

and litigation. An initial published draft ran to some 311 pages, ten

times the length of the old section 33 of the Local Government Act

(which competent planners with long memories concede was not

in fact an insuperable barrier to innovative town planning).

The legislative drafting was continued during the Borbidge inter-

regnum, culminating in the Integrated Planning Act (IPA) in 1997,

subsequently adopted and expanded by the Beattie government,

its absurdities remaining unresolved to this day.

The Beattie era witnessed an increased technological emphasis

in the Queensland economy. But the wasted Beattie years were

mainly distinguished by belated efforts to overcome self-inflicted

infrastructural backlogs. Plus some confused thinking about

government contracts for works and services and dabbling with

the illusory capacity of high salaried, high interest rate PPPs to

extend the finite limits of the community’s financial resources

Illu

sory

reg

iona

l pl

ans


continued page 35

“…the half-baked regionalisation now

emerging will certainly not pose any threat to

the continuance of state-level government…”

(despite the sorry history of PPPs which have had to be rescued by

the injection of additional public funds).

However, there have been two significant happenings. In the

early years of the new century – ten years after the ineffectual

“voluntary” SEQ Plan – the Beattie government responded to

intense public agitation in the media and applied limited resources

to the hasty preparation of an enforceable SEQ Regional Plan, to

be administered by the Department of Local Government and

Planning, together with a supplementary regional infrastructure

plan, with input from the Treasury via an Office of Urban

Management responsible to the then deputy premier and treasurer.

How elastic the Regional Plan’s “urban

footprint” becomes will depend upon

informed public scrutiny.

Lord Mayor Tim Quinn sought

permission for the BCC to require

contributions to low-income housing

from successful development

applicants, but the concept was

rejected by the deputy premier (who

retired and became a board member

of Devines Limited). The philosophy

of landowner profits scandalously

nurtured by the Bjelke-Petersen government is preserved in IPA

(notwithstanding the “infrastructure charges” provisions).

The second of the Beattie era significant happenings was the

sudden wholesale amalgamation in 2007 of local government

councils deemed to be not financially viable.

Neither of these developments, however, foreshadows a firm plan

of state development to counter the increasingly pronounced

imbalance in the south-eastern corner by diverting future population

growth to the centre and the north by adopting proven and

available decentralisation incentives – incentives which would cost

very much less than increasingly costly infrastructural development

per capita in the south-east. (Not surprisingly, perhaps, there has

been no acknowledgement of the looming problem of planetary

over-population.)

Short-circuiting the normally recognised criteria for designating

regions, some of the amalgamated local authorities are forthwith

to be designated regions and be subject to “regional planning”

(without, however, any very clear identification of the role

of regional plans in overall state planning and development).

Amalgamated local governments do not necessarily constitute

sustainable regions. They only become large local authorities

(with large internal wards more amenable to party political

representatives than independents, with scant recognition of

the need for democratic local representation at the lowest level

of government where most people are most commonly and

directly affected).

If these emerging “regions” are to be administered by the

Department of Local Government and Planning in the context of

IPA and its primary emphasis upon “development assessment”,

the consequences will be bizarre in the western parts of the

State, where population is static or declining and there is little

or no urban development to assess. Normally in regions defined

by the customary economic, geographical and environmental

criteria, regard would be had to the availability of an appropriate

regional centre and, importantly, the scope for integrating regional

planning and resource development with an overall plan of state

development (assuming one existed).

As things stand, a cynic may be permitted to observe that the

half-baked regionalisation now emerging will certainly not pose

any threat to the continuance of state-level government, with all

its wasteful and expensive jurisdictional duplication, which has

prevailed since 1901.

A review of the current situation in

Queensland invites some consideration

of the role of the Planning Institute

of Australia (PIA). The then president

of the Queensland Division and

other senior members made a very

effective contribution to the media

debate which led to the SEQ Regional

Plan in 2005 and the subsequent

infrastructure plan.

Since then, the precipitate enforced

amalgamation of small local governments has generated interest

in regional planning in the context of IPA and an extended role of

the Department of Local Government and Planning. However this

new-found enthusiasm for regional plans does not necessarily see

them as integral components of an overall state development plan.

Incredibly, one senior member of the PIA Divisional Committee has

asserted that any such planned development of the state would be

a reversion to “Soviet-style command management planning”.

Expecting the current, predominantly younger, membership of

the PIA to appreciate that the present role and status of

planning and the instruments of planning have been shaped

by purely fortuitous historical influences upon the structure

of government in Queensland is probably a vain hope. PIA is

tending to become a social organisation for young planners, its

membership is declining, and its glossy multi-coloured publications

are unashamedly sponsored by legal firms and land developers. PIA

has not expressed an opinion, for example, about the implications

of the extraordinarily controversial North Bank development. Or

about the longstanding reluctance of Queensland governments

to capture the unearned increment in land values conferred on

property owners who secure (or procure) development approval for

a more profitable land use.

Contributions extracted from developers by the Jones Council

in the 1960s were condemned by the state government, but

they funded the sewering of Brisbane - the outstanding legacy

of a dictatorial regime which, however, left some regrettable

other legacies (including the foreshortening of the ceremonial

entrance to the City Hall to obtain more space for the

underground car park).


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35


“…many of the disturbing features of the present Queensland planning

scene… are not immutble and…can,

therefore, be remedied.”

Quad Consulting Pty LtdProject managers and Quantity Surveyors

99 Annerley Road, Woolloongabba Q 4102 [email protected]

Ph 07 3846 0017 Fax 07 3846 0018

Project Management

Superintendent

Quantity Surveying

Green Star Professional

Extensive experience and track record

on Industrial buildings, aviation facilities,

commercial offices, retail buildings,

civil subdivisions and infrastructure

A problem continues to be the distinction between town planning

conditions, impact fees and development contributions. It has

never been clearly drawn, and is not recognised in the absurdly

complicated “infrastructure charges” prescribed by IPA.

The limitations of the Planning

Institute, however, are unimportant.

Appreciation and understanding of the

planning and development situation by

the government is far more important.

One views the future with fingers

crossed, and one regrets that there is

no current “Ginger Group” of well-

informed back-bench members; and

no clear statement of planning and

development issues like the remarkably

perceptive “Submission on Regional

& Town Planning in Queensland”

to the premier in 1968, signed by

the presidents of all the Queensland

professional institutes. Some surviving or recently retired members

of the state bureaucracy will remember the impressive State and

Regional Planning and Development, Public Works Organisation and

Environmental Control Act of 1971, and the regional coordination

councils which held high promise - until premier Bjelke-Petersen

abolished them in favour of “more flexible arrangements” (less

inhibitive of the “white shoe brigade”).

Summing up, many of the disturbing features of the present

Queensland planning scene have come about fortuitously. They are

not immutable, and they can, therefore, be remedied. However,

while the foregoing pages show how and why some things have

happened, they don’t presume to be a catalogue of opinionated

recommendations. They are merely the

reflections of one with a lengthening

memory who would like to see his home

state progress more purposefully, socio-

economically and environmentally, and,

above all, equitably and inclusively.

That being said, readers looking for

positive alternatives to our planning

shortfalls, might want to look at my

past Guest Commentaries in the King’s

Counsel, starting in 2004. These can be

accessed by contacting Tom Richman at

[email protected].

Phil Day, LL.B., Dip.TCP., PhD is a former NSW Director of

Decentralisation, a former BCC Director of Town Planning, and a

Life Fellow of the Planning Institute of Australia.

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For an electronic version

of the King’s Counsel and

other market analysis,

please see our web site at:

www.kingco.com.au

Except where otherwise noted, King’s Counsel is written, edited, and compiled by tom Richman BA, MA, MPhil, (Oxon).

the King’s Counsel is published by King & Co Property Consultants Pty Ltd, 99 Annerley Road, Woolloongabba, 4102. telephone (07) 3844 3222. Facsimile (07) 3844 9888. ABN2012041118

While data has been compiled from reliable sources and all care has been taken to ensure its accuracy, readers should not act solely on the basis of the information contained herein. King & Co Property Consultants recommends formal advice be sought beforehand.

All or any part of King’s Counsel may only be used with the permission of King & Co Property Consultants.

the views provided by this issue’s guest commentators are meant to stimulate public debate and do not necessarily reflect the opinions of King and Co Property Consultants.


How’s the industrial property market faring in your precinct?

Post or fax to: David Chitham

King & Co Property Consultants

P.O. Box 1046 Coorparoo DC 4151

Ph: (07) 3844 3222

Fax: (07) 3844 9888

E-mail: [email protected]

Name title

Company Name

Postal Address

Phone Facsimile

Email

Electronic Version Posted Version

I’d like to subscribe to King’s CounselYES

www.kingco.com.au

FREE

West End, South Brisbane, Woolloongabba, East Brisbane & Coorparoo

Sales: Jane turnbull (0409 711 559)

Leasing: Rob Finlay (0411 747 165)

At A GLANCE:

• City fringe still in high demand but tightly held

• Whatever comes on to the market achieves benchmark amounts

• Woolloongabba developers and owners awaiting Local Area Plan

• Coorparoo popular with business owners wanting to live near work

• Long term owners should consider selling

As in the recent past, West End light industrial stock remains

very tightly held, with little expected to come onto the market

for purchase any time soon. Sales that did occur, unsurprisingly,

tended to be at benchmark prices and picked up for their high

office component or conversion potential, generally by CBD users

needing to expand and willing to pay whatever it takes, a trend

possibly propelled by last year’s 73% CBD rate increase.

Transactions include a 377m2 industrial unit with a large proportion

of office at 1/19 Musgrave Road, which was bought late last year

for $840,000, or $2,228/m2, an amount that would most likely be

much higher in today’s market, as it’s identical to a nearby property

that recently sold for $1,130,000, or $2,997/m2. Each unit was said

to have enjoyed an extraordinary amount of interest during their

respective marketing campaigns.

The next six months should, however, see a levelling off of

asking prices, possibly because many potential owner/occupiers or

developers have simply stopped looking here since so little is ever

on offer. In addition, CBD rates are expected to increase by “only”

20% this year and may, therefore, moderate any “push” factor.

The leasing market, on the other hand, was quite vigorous over the

past six months, and saw spaces leaping to benchmark rates, with

more hikes expected to come, particularly for offerings with lots of

office. As example, two units of 333m2 and 370m2 at 23 Anthony

Street, were rented six months ago for $160/m2 nett, but could

easily achieve $190/m2 to $200/m2 in today’s market due to their

50/50 office/warehouse ratio. Those with an even higher level of

office are quickly being rented for $250/m2, while new, pure office

space, is achieving up to $550/m2. Needless to say, these amounts

will seem relatively cheap by year’s end, despite the talk of some

additional stock soon coming back onto the market.

South Brisbane’s industrial/commercial sales market has been

a bit slow, in large part because too many owners keep holding

onto their buildings waiting for developers or redevelopers to offer

them top dollar. While this is understandable, given the persistent

increase in values (and because there’s few places safer to park

their money even if they did sell), some analysts suggest they

probably shouldn’t wait too long as it’s anticipated there will be

glut of CBD office space around 2011 resulting in significant rate

drops, followed by asset depreciation all around. This is especially

relevant for older owners looking at these properties as their super

guarantee, in that they might not have time to wait for the “up”

phase of the next business cycle.

Indeed, the only significant transaction revolved around the

heritage listed building at 137 Melbourne Street, where a 153m2

office sold for a benchmark $1.72 million (or $11,241/m2!), while

a nearby 190m2 office, also beautifully finished, with 3-4 off street

carparks and a lovely courtyard, is up for auction on 28 May and

expected to receive an equally strong price.

Spaces for rent in South Brisbane are achieving pretty much the

same rates as the West End, both of which should see some stock

continued page 16

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