Recent research has highlighted the growing strain on the Sunshine Coast’s industrial sector.
The Industrial Land Supply and Vacancy Outlook 2026 found industrial sites across South-East Queensland were being absorbed at a rapid rate, vacancy remained low and demand continued to grow.
The study, commissioned by the Property Council of Australia and prepared by SA1 Property, found Sunshine Coast industrial outdoor storage was 98.8 per cent utilised, indicating limited capacity in a key part of the region’s industrial land supply.
In response, deputy premier Jarrod Bleijie said the state government understood the pressure on industrial land and was taking action to unlock land and infrastructure needed for growth and new jobs.
Place Design Group planning principal Brad Williams said the findings emphasised the need to plan ahead for industrial land supply.
“The Sunshine Coast is planning for significant population growth, but this report shows that growing communities also need a pipeline of employment land,” he said in a media release.
“The Sunshine Coast has significant opportunities emerging in areas like Beerwah South, Yandina East and Corbould Park, however, the report tells us that much of the future supply is either already performing an industrial function or will take time to become development ready.
“Getting in front of that challenge now will help ensure the region remains an attractive place to invest, do business and create jobs for decades to come.”
The report also found significant pressure across Brisbane, where 205 hectares of industrial land is expected to be absorbed annually over the next five years.
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In Brisbane, the industrial outdoor storage market is 96.87 per cent utilised, leaving limited capacity for businesses needing yards for equipment, materials, vehicles and storage.
Mr Bleijie told Sunshine Coast News the government was taking steps to prepare for future growth.
“The Crisafulli Government understands the challenge of industrial land supply across South-East Queensland and is taking action to unlock the land and infrastructure industry needs to grow and create new jobs closer to where Queenslanders live,” he said.
“Our government is getting on with the job of working with councils and industry to boost industrial land supply.
“Our refocused Economic Development Queensland has released more serviced industrial lots to market in the last 18 months than in the previous five years combined.
“As part of our commitment to deliver new regional plans for every corner of the state, the current review of the SEQ Regional Plan and Infrastructure Plan is focused on unlocking land for new housing and boosting industrial supply.
“This is about delivering more than just glossy brochures; it’s about delivering the enabling infrastructure and planning certainty needed to unlock land and secure more job-creating investment.”
EDQ recently released more than 26 hectares of (subdivided and serviced) industrial lots, including at Coolum Beach, Townsville and Mount Isa.
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Property Council Queensland executive director Jess Caire said the research findings reinforced the need to accelerate the delivery of additional industrial land to support the state’s growing population and economy.
“Queensland’s industrial precincts are doing the heavy lifting for a growing economy: supporting freight, logistics, construction and the delivery of major infrastructure, and many of these strategically located sites are now approaching full occupation, leaving limited room for future growth,” she said.
“At the same time, industrial land values have increased by 44 per cent in just 12 months, and, as land becomes harder and more expensive to develop, we risk limiting the types of projects that can be delivered and the jobs and investment they support.
“We’ve also seen rents increase 50 per cent since 2019, adding to the cost of doing business and ultimately driving up prices for everyday Queenslanders in the midst of a cost-of-living crisis.
“If we don’t maintain a pipeline of well-located job-creating employment land, we risk pushing up costs for businesses, making it harder for new investment and jobs to flow into South-East Queensland.
“This requires immediate, coordinated action between industry and government. We need to unlock fit-for-purpose industrial land in the right locations, supported by roads, water and other enabling infrastructure.”
The Property Council is calling for a $500 million fund and a state-wide strategy to help unlock new industrial land, along with changes to investment settings and better monitoring of land supply.
