Brisbane’s Industrial Boom: What’s Driving Demand?

Brisbane is leading Australia’s industrial property surge, fuelled by logistics, e-commerce, manufacturing, and major infrastructure projects. With sustained population growth across South East Queensland and improved connectivity between port, rail, and road networks, 2025 is shaping up as a landmark year for industrial property in the region.

This article explores the key drivers of Brisbane’s industrial boom and what to expect in the year ahead.

Industrial Market Momentum: Why Brisbane Is Outperforming

Brisbane’s industrial property sector has outpaced office and retail asset classes, with vacancy rates sitting below 1%. Demand is being driven by:

• E-commerce expansion

• Third-party logistics (3PL) providers

• Manufacturing and clean energy businesses

• Cold storage for food and pharmaceuticals

South East Queensland’s strong population growth, along with major infrastructure investment, is pushing occupiers and developers west and north of the city.

High-Demand Areas in 2025

Key industrial precincts that continue to see strong interest include:

• Pinkenba and Eagle Farm (airport-adjacent logistics)

• Acacia Ridge and Rocklea (rail-connected manufacturing)

• Yatala and Stapylton (midway Gold Coast-Brisbane)

• Ipswich and Redbank (large-scale warehousing and intermodal hubs)

Developers are actively land-banking in these regions, with speculative builds increasingly common due to confidence in pre-leasing.

Infrastructure Driving Demand

Strategic infrastructure upgrades are significantly improving freight movement and access to industrial zones:

• Inland Rail project: Connecting Melbourne to Brisbane, unlocking intermodal logistics potential in SEQ.

• Port of Brisbane expansion: Boosting export-import capacity.

• Gateway Motorway upgrades: Enhancing north-south freight movement.

• Bruce Highway and Ipswich Motorway upgrades: Making regional industrial zones more accessible.

This investment is creating long-term appeal for tenants and owner-occupiers looking for scalable, well-connected facilities.

Emerging Trends in Brisbane’s Industrial Sector

1. Large-format warehouses: Tenants want 10,000m²+ footprints, clear span heights, and automation-ready facilities.

2. Green industrial design: ESG is moving beyond office. Developers are including solar arrays, water recycling, and green roofs in industrial builds.

3. Multi-storey logistics: Land scarcity is encouraging vertical warehouse design in inner-city zones like Morningside and Murarrie.

4. Owner-occupier activity: Low vacancy and rental growth are prompting businesses to buy sites and build their own facilities.

Investment Outlook: Capital Chasing Industrial

Brisbane industrial assets are in high demand from both institutional and private investors. Key factors:

• Stable, long-term leases

• Rental growth prospects

• Low maintenance costs

• Attractive yields compared to Sydney/Melbourne

Major REITs and offshore buyers are increasingly targeting Brisbane as part of their national portfolio strategy, particularly for last-mile logistics and data centre-ready sites.

Challenges to Monitor in 2025

• Land supply constraints: Particularly in the inner and middle ring.

• Construction costs: Elevated costs are affecting feasibility for smaller developers.

• Labour shortages: Across construction and logistics sectors.

Despite these, confidence remains strong due to structural demand for industrial space and Queensland’s economic momentum.

Final Thoughts

Brisbane’s industrial boom shows no signs of slowing in 2025. With growing infrastructure capacity, a strategic location along national freight corridors, and a diversifying industrial tenant base, the city is poised to remain one of Australia’s top-performing commercial property markets.

For investors, developers, and occupiers, now is the time to secure a foothold in Brisbane’s evolving logistics landscape.