Underwood Warehouse Investment Timeline – Small-Site Strategy for 20

How small industrial and warehouse properties in Underwood are attracting long-term investors and business owner-buyers

Location Context: Why Underwood?

Underwood is strategically positioned between Brisbane and Logan, offering small industrial property buyers an accessible, high-demand location with:

• Easy access to the M1, Gateway and Logan Motorways

• Established light industrial corridors (Compton Rd, Parramatta Rd, Smallwood St)

• A strong tenant pool from automotive, construction, online retail, and logistics businesses

These features make Underwood a high-performance pocket for buyers seeking warehouse sites between 150m² and 800m² — particularly under $1.5M.

Investor Demand Snapshot – 2025

Investment Timeline: From Sourcing to Leasing

Step 1: Site Selection (Month 0–1)

💡 What to look for:

• Clear access for small trucks and deliveries

• 3-phase power and roller doors

• Office area (10–20%) + kitchenette

• Clean titles with no easement conflicts

• Parking: min. 3 spaces for 300m²+ units

• No environmental overlays or flood zones

Norton’s maintains an internal register of pre-release and off-market Underwood industrial units.

Step 2: Due Diligence (Month 1–2)

Key Checks:

• Zoning confirmation (usually Low Impact Industry)

• Building compliance + fire safety

• Body corporate disclosures (for strata lots)

• Pest, roof, slab, and electrical reports

• Lease expiry (if buying tenanted)

Zoning Snapshot – Underwood (Logan City Council 2025)

Step 3: Acquisition (Month 2–3)

Most deals in 2025 are finalised with:

• 30-day contract finance clause

• Settlement in 45–60 days

• Immediate access or delayed possession (tenanted)

Tip: SMSFs are entering this market for yield + depreciation benefits.

Step 4: Leasing or Occupation (Month 3–5)

Options:

A. Lease to a tenant

• $140–$180/m² depending on size + finish

• Typical lease: 3+3 or 5+5

• Outgoings: usually on-charged

• Net rent example: 300m² unit = ~$46,000 p.a.

B. Owner-occupy

• Operate trade, service, storage, eCommerce, workshop

• Later convert to tenanted investment

• Add value via mezzanine or climate control

Step 5: Revaluation / Hold Strategy (Month 6–24)

Add value through:

• Cosmetic upgrades

• Signing long-term tenant

• Subdividing large lot to strata (STCA)

• Adding signage, solar, or roller door automation

Investors who hold for 3–5 years typically see equity uplift between 12–18%, particularly if lease is in place and rent has been reviewed annually.

Owner-Occupier Demand: A Silent Force in 2025

Many Underwood warehouse buyers aren’t traditional investors. They’re:

• Trade businesses moving out of home

• eCommerce operators scaling into physical storage

• Mechanics or fit-out companies looking for custom premises

• Light manufacturing and signwriting companies

These buyers are pushing sale prices up, particularly for freehold properties under 600m².

Common Mistakes to Avoid

• Ignoring zoning overlays (noise, vegetation buffers)

• Underestimating strata costs in older complexes

• Not reviewing lease documents for “early exit” clauses

• Forgetting to verify ceiling clearance for future use

• Assuming all titles are clean — many older sheds need title review

Norton’s helps you vet all documentation and site reports before offer.

What Norton’s Offers Industrial Buyers in Underwood

We assist with:

• Owner-occupier sheds with upside

• Tenanted warehouses for yield buyers

• Investment packs with lease reviews + capex plans

• Strata complexes with active BC and no special levies

📞 Call the Norton’s Industrial Property Team

⚠️ Legal Disclaimer

This blog is for general information only. Norton’s Real Estate disclaims all liability for financial, legal, or investment decisions made based on this content. Always consult with licensed commercial agents, planners, and financial advisors before purchasing industrial property.