The Rise of Lifestyle Industrial Property on the Sunshine Coast

Industrial property on the Sunshine Coast is changing. Just minutes from beaches, residential communities and coastal villages, a new generation of design-led industrial complexes is emerging. Built for a changing mix of occupiers, architecturally designed multi-purpose spaces, high-quality fitouts, natural light, air-conditioned offices and functional mezzanines are replacing the basic shed-and-hardstand model.

Where industrial estates were once dominated by manufacturers, fabricators and mechanical businesses, they’re now also home to an eclectic mix of e-commerce, designers, health and wellness businesses, galleries, food producers and retailers. These businesses are looking for sharper presentation, spaces that reflect their brands and the flexibility to accommodate office, showroom and warehouse functions under one roof.

Unlike industrial areas traditionally located on the outskirts of cities and towns, many Sunshine Coast precincts sit within our coastal communities. In Noosaville, Coolum Beach, Moffat Beach and Caloundra, key precincts are just minutes from homes, beaches and retail centres, keeping business owners connected to the lifestyle that attracts people to the coast in the first place.

GREAT DESIGN BECOMES THE DIFFERENTIATOR

As buyers become more discerning, developers are raising the bar on design and functionality.

“The biggest difference between a good development and a great development is design,” RWC Commercial Property Consultant Tallon Pamenter said. “But great industrial design is about more than aesthetics. It means considering how a business will actually use the space, from the size and position of roller doors and vehicle access, to office placement and the balance between mezzanine and warehouse floor areas.”

The Coolum Industrial Estate is an excellent example of how well designed properties can shape an entire area. One of its first premium properties was 86 Quanda Road, Coolum Beach comprising six meticulously designed units, all sold by Tallon. 

Quanda Business Park at 248–256 Quanda Road, Coolum Beach followed, with 36 architecturally designed industrial units and two caretaker units generating approximately $26.5 million in sales.

“Buyers were prepared to pay a premium for Quanda Business Park because they saw value for money,” Tallon explains. “Throughout, there were higher end finishes, including natural stone, with practical features such as two undercover car parks, drive-around access and mezzanines designed to preserve usable warehouse space. Despite similarly sized units nearby being offered for around $100,000 less, the complex sold out.”

FLEXIBILITY CREATES OPTIONS

Flexibility is also proving valuable across the life of an industrial property, with older premises finding new relevance as occupiers adapt them for different uses.

At  1/6 Rene Street, Noosaville, a rundown 107sqm strata unit that had previously been used to sell fish tanks and pet products was transformed with a high-end fitout intended for an event space. When it returned to market, it attracted strong interest and sold for $910,000 to a fitness operator specialising in one-on-one classes. 

“It looked more like an apartment than a traditional industrial unit,” RWC Commercial Property Consultant David Brinkley said. “When it came time to sell, the fitout was perfect for the incoming owner. They didn’t need to spend additional money changing the space and, for a while, it was one of the highest rates per square metre we had achieved.”

A standard warehouse was transformed with a $1 million food production fitout at  23 Lysaght Street, Coolum Beach, before selling for $5.2 million when the original owner outgrew the premises.

“Not many food production warehouses come to market on the coast,” Tallon said. “For the next buyer, a lot of the hard work had already been done. The fitout was almost perfect, the property was very well maintained and it had the benefit of a corner site with dual access.”

OWNER-OCCUPIERS LEAD THE SHIFT

Owner-occupiers are playing an increasingly important role in the industrial market, particularly at the smaller end.

In Noosaville, many of the smaller new industrial units fall within the $500,000 to $1 million price range. With rents reaching $250 to $280 per sqm, many business owners are weighing up the benefits of owning their premises.

“Owner-occupiers are leading the charge,” David said. “It becomes a question of, ‘if I’m paying this much in rent, why not push to get my own property?”

Further south, RWC Commercial Property Consultant Josh Harris is seeing owner-occupiers influence the type of industrial product being developed, with buyers looking for premises capable of accommodating more of their business under one roof.

“We’re seeing more premises designed so owners can run their whole business from one location,” Josh said. “That might mean combining warehouse and office space, or light manufacturing with retail or a showroom.”

At  The Depot in Moffat Beach, a 20-unit development spanning 10 and 12 Eva Street and 173 Grigor Street, smaller streetfront units have a stronger retail aspect, while medium-sized warehouse units can operate independently or support a customer-facing business. The larger caretaker units with balconies and higher end finishes overlook the neighbouring golf course.

Nearby, four new industrial units at  1-4/26 Allen Street, combine higher end industrial finishes with flexible uses. Its caretaker unit pairs a one-bedroom apartment style space and balcony with a separate warehouse, allowing an owner to use both or lease the warehouse independently.  Unit 1 sold off the plan for $980,000.

THE CHANGING PERSONALITY OF SUNSHINE COAST INDUSTRIAL ESTATES

Around Venture Drive in Noosaville, the traditional industrial estate has taken on a different character. David describes the precinct as a “melting pot”, where galleries, creative businesses and online retailers sit alongside more conventional operators. 

“Some might have their main shop in Noosa Junction or Hastings Street and take on an industrial space for a second outlet, a backup outlet or the e-commerce side of the business,” David said.

Across the heart of the region, Tallon observes the mix of neighbouring businesses becoming part of the decision about where to locate.

“Everyone wants nicer spaces but they also want to be around like-minded businesses,” Tallon said. “When you have businesses with similar values and expectations in the same complex, there’s more alignment in how they use and present the space. It’s those value alignments that build connection and community.”

WHERE LIFESTYLE INDUSTRIAL IS HEADING

The next generation of projects is pushing the lifestyle industrial concept further, with different formats, unit sizes and features to suit an increasingly diverse range of occupiers.

Atria  at 80 Dacmar Road in Coolum Beach represents the next iteration of the design-led approach, with flexible unit sizes and additional courtyard areas. Designed by OGE Architects, the 17-unit development builds on features seen in earlier projects such as Quanda Business Park, combining drive-around access and double roller doors with courtyards, hardstand, security and offices positioned to maximise natural light. The caretaker residence has also set a new benchmark, achieving a record price with what could be the best caretaker’s Coolum has seen to date. 

In Noosaville, The Precinct at 58 Rene Street introduces a different format, with a multi-level development combining ground floor studios and office warehouses with lower-level micro warehouses for businesses, trades and owners with smaller space requirements.

The traditional shed continues to have its place. But alongside it, a distinctly Sunshine Coast version of industrial property is emerging, shaped not only by what businesses need from their premises but by how their owners want to work and live.

“People live on the Sunshine Coast because of the lifestyle, so it makes sense that they’re shaping the places where they live, work and play around that lifestyle, including the way they do business,” Josh said. “As the way we use industrial property changes and the mix shifts towards cleaner businesses, we can expect to see some of our older industrial areas completely reimagined.”

Whether you’re buying, selling, leasing or reviewing the management of your commercial property, our team has their finger on the pulse and the local knowledge to support your next move.

Get in touch with our team on +617 5474 7600