Townsville Industrial Market Shows Strength Amid North Queensland Headwinds

While other segments of the North Queensland commercial property market face challenges, Townsville’s industrial sector is showing notable resilience. Despite a drop in overall transaction volumes, industrial median prices rose 8% to $1.02 million over the past year — driven by demand from infrastructure-linked industries and strong local business activity. With several large-scale regional projects underway and renewed attention from logistics and renewables operators, Townsville’s industrial market is emerging as a bright spot in an otherwise mixed economic environment.

Infrastructure Investment Driving Confidence

Townsville’s industrial growth is being powered by major infrastructure projects that are reshaping regional connectivity and creating long-term demand for warehousing, supply chain services, and equipment yards. These initiatives are injecting capital into the region while boosting investor confidence in stable long-term asset performance.

• The $5 billion CopperString 2032 transmission project is unlocking opportunities for construction, energy, and logistics operators.

• The $1.4 billion Gawara Baya Wind Farm is generating regional employment and industrial leasing demand for staging and component storage.

• These projects are driving demand for well-located, service-ready industrial properties with transport access.

Low Vacancy and Rising Owner-Occupier Interest

Local business expansion, limited modern stock, and a growing preference for control of premises are driving more buyers into the market. Owner-occupiers are increasingly seeking to secure their long-term footprint before values escalate further.

• Vacancy rates in key Townsville industrial precincts remain well below the national average, particularly for mid-sized sheds.

• Local businesses are upgrading or consolidating into freestanding warehouses and hardstand lots.

• Investors are also active, targeting tenanted assets with infrastructure-aligned users.

Strong Rental Demand Across Core Precincts

Townsville’s established industrial zones — such as Garbutt, Bohle, and Mount St John — continue to attract tenants across logistics, trades, defence, and energy sectors. New leasing activity is underpinned by strong project pipelines and a growing population base across the broader region.

• Industrial units between 300–1,000sqm are leasing quickly, especially with B-double access and roller shutter entry.

• Local developers are struggling to meet demand for build-to-lease solutions, especially for yards and storage.

• Trade supply, logistics, and government-backed infrastructure contractors are key tenant groups active in the market.

Population and Workforce Trends Support Growth

Townsville’s role as a regional capital is growing, with population increases and a skilled workforce making it attractive for industrial operators seeking scale and stability. Government relocation programs and housing initiatives are expected to increase this momentum further.

• Population growth is creating sustained demand for regional logistics, construction supply, and service businesses.

• Townsville supports a wide labour pool, including skilled tradespeople and infrastructure contractors.

• Industrial users benefit from proximity to regional hubs such as Mount Isa, Cairns, and the Burdekin, enhancing long-haul logistics value.

Long-Term Outlook: Resilient and Underrated

Townsville’s industrial property sector may not make national headlines, but its fundamentals remain strong. With major infrastructure investment, stable occupancy, and regional growth, the city is quietly becoming a strategic hold for investors seeking dependable income and future development upside.

• Regional resilience is creating a platform for long-term yield and capital growth in industrial assets.

• Townsville is increasingly attractive to funds and private investors looking to balance metro-heavy portfolios.

• As North Queensland continues to diversify, Townsville’s industrial base will be critical to energy, logistics, and defence delivery.

How Commercial Property Marketing Can Help

At Commercial Property Marketing, we bring attention and clarity to regional projects with national potential. From leasing campaigns to 3D renders, aerial visualisation and investor-grade IMs, we help you communicate the full value of your industrial asset — wherever it’s located. Whether it’s a single-site lease-up or a strategic regional launch, we know how to deliver momentum.