Lot 10 - Torrington Business Park
Rents and values for industrial property will continue to rise in Toowoomba over 2025 according to LJ Hooker Commercial’s most recent Market Monitor.
The industrial market remains a buoyant prospect for both investors and occupiers with the Monitor expecting values and rents to rise on the back of demand.
Currently, industrial rents are circa $140-$180 per square metre in Toowoomba, an increase of around 7% over the last 12 months. Values increased 21% over the period.
Yields for office properties – both freehold and strata – will continue to hold steady into the new year, after averaging 6.5-8.5% and 6.5-7.5%, respectively, over the back end of 2024.
The retail market is expected to perform modestly in line with contined cost-of-living challenges and broader global conditions.
The forecast comes as the Toowoomba area was ranked third in regional Queensland for business resilience – a measure of the long-term success of companies.
LJ Hooker Group Head of Research Mathew Tiller said the region’s infrastructure was underpinning interest from the market.
“Investors and occupiers recognise Toowoomba’s role as the gateway to Queensland's western markets,” said Mr Tiller.
“From the Wellcamp Airport and surrounding industrial precincts to the Second Range Crossing, it offers transport and logistics operators great efficiencies. It’s the conduit between the Western Downs’ agricultural and mining sectors and Brisbane.
“And with the InterlinkSQ project and the Inland Rail, Toowoomba will become a national inland freight nexus with excellent connectivity to southern markets.”
The region continues to build a profile as a hub for data centres with its accessibility, affordability of land and climate underpinning its appeal.
LJ Hooker Commercial Toowoomba Director Chris Stewart said there wasn’t enough smaller-scale industrial to meet the needs of operators in the region.
“Sub-3000sqm industrial holdings are in high demand,” he said. “It’s been difficult for developers to make speculative builds stack-up in recent years and we’re seeing a significant supply issue in this area.
“With so much growth in industrial over the last three years, the budgets of tenants who are coming off leases are being stretched.”
While the Monitor predicted a flat period for office and retail over the next 12 months, Mr Stewart believed it was an opportune time for investors and occupiers to enter the market.
The future $1.3bn Toowoomba Hospital, slated to open in 2027, would create significant demand for office and retail, he said.
"The hospital will be one of the best in regional Australia. We’re already seeing residential developers bring sites to life that will house an increased workforce in the area.
“A larger general population will also support demand for retail and ancillary healthcare professionals will be seeking office space as well.”
Read more here: Toowoomba Market Monitor
For media enquiries:
Ryan Ellem
M: 0427 916 020 E: rellem@ljhooker.com
About LJ Hooker Group
96 years, 420 offices, 4,300 people, 4 brands
LJ Hooker Group has been pioneering real estate since opening of its first LJ Hooker office in Maroubra, Sydney, in 1928. Since then, it has grown to become a house of brands including two boutique networks - Atlas by LJ Hooker in Australia, and Harveys in New Zealand - and LJ Hooker Commercial, which provides a comprehensive range of commercial real estate services.
Collectively, the LJ Hooker Group comprises one of the largest residential and commercial sales and property management networks, comprising 420 offices and a team of 4,300 sales professionals, property managers, and support staff across the Tasman.
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