‘Speculative build pays’ for ESR at 430 Sherbrooke Rd11 February 2022
ESR’s first speculative Queensland project has been fully leased prior to practical completion in late March.
ESR Australia has 12,S00sq m in lease commitments at its industrial development within its ESR Sherbrooke Industrial Estate in Willawong on Brisbane’s southside.
The site at 430 Sherbrooke Rd was initially designed to include two bigger tenants. However, strong offers from customers requiring smaller 3000sq m to 5000sq m spaces drove the revision of development plans to accommodate three tenancies.
The site at 430 Sherbrooke Rd was initially designed to include two bigger tenants. However, strong offers from customers requiring smaller 3000sq m to 5000sq m spaces
drove the revision of development plans to accommodate three tenancies.
Building products supplier Bremick has secured a 5200sq m tenancy and water transfer, conservation, treatment, and filtration services business Davey Water has leased a 4200sq m space. Leading manufacturer and supplier of fire and acoustic rated wall systems Speed Panel has a 3500sq m tenancy.
The leases were between three and seven years and current rental rates in the area range from $115-$125/sq m net.
ESR Queensland general manager development Craig Robertson said they were comfortable to start a speculative development because of demand for emerging industrial
precincts such as Willawong, which is near arterial road networks and other infrastructure.
“This confidence has been vindicated with the quick uptake of space by Bremick, Davey Water and Speed Panel,” he said.
CBRE’s Jack Hardy and Peter Turnbull secured the Bremick lease agreement while Mr Hardy negotiated the deals with Davey Water and Speed Panel with tenant representative Michael Richardson from CBRE’s Occupier business.
The remaining sites in the 6.lha ESR estate were precommitted following design and construct deals. Mr Hardy said occupiers were focused on improving efficiencies through automation and scale.
“This has underpinned considerable interest in Sherbrooke Industrial Estate, given its quality construction, large internal warehouse heights and corporate office accommodation for staff,” he said.