Demand outstrips supply in Logan accommodation market

A surge in private and public investment, growing visitor numbers and game-changing tourism projects underway is driving the demand for short-term accommodation in the City of Logan.

Located just 30 minutes’ drive to major destinations – Brisbane to the north and the Gold Coast to the south – Logan welcomes 1.4 million visitors each year and continues to have strong levels of growth in domestic and international overnight travel.

The $12 billion of tourism infrastructure injected into the wider region, places the city in a strategic position to take advantage of the boom in visitors to South East Queensland.

However, recent growth forecasts suggest occupancy rates in Logan will exceed 80 per cent by 2021, set to trigger a severe undersupply of rooms and leakage of trade by 2026.

Logan’s current supply is limited – at around 300 rooms across 12 facilities, it comprises primarily of motel style accommodation concentrated along arterial roads.

Despite high occupancy rates, no new hotel stock has been developed in more than a decade.

As cities like Brisbane focus on servicing the leisure travel market, Logan has the potential to grow its stake in the business travel market.

Home to more than 21,000 registered businesses, many headquarters and operational bases in Logan generate a substantial and continuous demand in overnight room stays.

Just one example is global company John Deere – its headquarters for Australia and New Zealand is located in Logan and receives around 700 domestic visitors every year for training alone.

The demand metrics on population and business growth indicates a need for 65,000 additional room nights in Logan up until 2036 – equivalent to 180 additional rooms.

When compared to similar areas, Logan is undersupplied in the number of commercial short term accommodation rooms relative to population, workers and visitors.

Table: Data as at January 2019

As one of the largest employers in the city, the Logan Hospital in Meadowbrook is one of the busiest health service providers in the region and has recently kicked off its $460 million expansion project.

Meadowbrook has been identified as a hotspot for potential accommodation facilities, aligned with Council’s master plan to develop the centre as a medical and health precinct.

With projects like the hospital underway and large private enterprise investing in Logan, the demand could outstrip supply faster than predicted.

In the last financial year, building activity in Logan was valued at over $800 million.

A stream of commercial activity saw large companies including national coffee franchisor Zarraffa’s Coffee, global logistics leader DHL and world-first commercial drone delivery service providers Wing (an Alphabet company) establish their operations in Logan.

Zarraffa’s Coffee moved into their $20 million purpose-built national headquarters from the Gold Coast to Logan in August this year.

The company’s new HQ will support 90 plus stores across Queensland, New South Wales and Western Australia and provide the space to progress their future expansion plans.

Spanning 18,000 sqm, the site also combines a roastery, a warehousing, packaging and distribution hub, factory concept café, and the $50 million Distillery Road Market project being delivered by the company’s development arm Tonken Property Group.

Headed by founder of Zarraffa’s Coffee, Kenton Campbell, Distillery Road Market is set to become a world-class food experience destination akin to iconic markets such as Chelsea Market in New York and The Grounds of Alexandria in Sydney.

Campbell said the timing was right to relocate to Logan, given its central location along the growth corridor between Brisbane and the Gold Coast.

“From the point of view of customers, staff and suppliers, there is no better place, than where we are right here,” Campbell said.

“Logan has given me the ability to create something special at Distillery Road Market and for Zarraffa’s.”

Distillery Road Market will be the first of its kind in Logan and Queensland, and is part of a growing tourism cluster in the Beenleigh and Eagleby area.

Local attractions such as Beenleigh Artisan Distillery, Australia’s oldest registered distillery, and award-winning Aboriginal live theatre experience, Spirits of the Red Sand, draw in both domestic and international visitors.

In the next few years, the city’s strategic focus on developing its capabilities in the business, cultural and sports events sectors, will see Logan’s relatively youthful tourism industry continue to evolve.

Over the past 6 months, Logan City Council’s events acquisition program in partnership with Sports Marketing Australia has since attracted attendance of more than 14,000 competitors and spectators across 50 event days.

Rick Sleeman, Managing Director of Sports Marketing Australia said that Logan had an accessible location and the right event infrastructure in place to host major sporting events.

“A capacity and capability assessment identified Logan’s potential to become a sports super centre in South East Queensland,” he said.

“Logan has world-class facilities from PGA standard golf courses, sporting fields, indoor courts and 2000-capacity arenas, plus access to national and international airports making the city an ideal host.”

Image: Logan Metro Sports and Events Centre is the third largest venue in Greater Brisbane accommodating up to 2,100 guests 

In 2018, the Brisbane Roar Football Club invested $9 million to develop a state of the art training facility and operations base at Logan Metro Sports Park and has plans to host tournaments.

And the recent $65 million whitewater adventure park proposal, now at the pre-feasibility stage, will be a game-changer for Logan and the region – with the potential to become an iconic tourism asset and future Olympic Games venue.

The demand for short term accommodation continues to escalate as the line-up of major sporting tournaments join Logan’s events calendar.

Given the strong demand fundamentals and opportunities across business, events and the emerging tourism industry in Logan, there is a demonstrated gap for a business style, specialist hotel or serviced apartments.

To support this shortage in supply, Logan City Council offers incentives for eligible new short term accommodation developments that achieve a 3.5 to 5 star rating.

For more information on development incentives and to download the study on short term accommodation investment opportunities visit www.loed.com.au/investinlogan.

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Global food markets on international display

Celebrity British chef Ainsley Harriott is doing his part to showcase our city’s diverse produce and markets with the screening of Ainsley’s Market Menu featuring our Logan Central Global Food Markets.

The popular TV series, which is screened in 130 countries will be broadcast throughout Australia on SBS on 24 October.

When the episode was shot earlier this year, Ainsley visited stalls collecting locally-grown ingredients and tasted many of the largely ethnic cuisines on offer while deciding which dishes to prepare.

He bought Halal lamb, kundru, cassava, turmeric, ginger and plenty of Asian greens provided by local vendors and then used the ingredients to cook three gourmet dishes on site at his stall as hundreds of market-goers and vendors looked on.

The first dishes he made were a global green shot and coconut smoothie and Asian lamb patties on char-grilled cassava. As a main course he created Ram’s kundru pumpkin vegetable curry, which  he made for stallholder Ram Harakh Maharaj, of Shailer Park, who was celebrating his 85th birthday.

During filming Ainsley said the markets were among the most diverse he had visited—with the range of local produce rivalling some of the huge street markets in London.

“The food here (in Logan) was fantastic, fresh and vibrant and I just wanted to cook it,” he said.

“Everyone was so friendly. It was just a brilliant day.”

Ainsley’s visit to the City of Logan’s Global Food Markets follows the hugely successful guest appearance at the markets in 2017 by MasterChef runnerup Poh Ling Yeow.

The Sunday morning Global Food Markets, based in Croydon Rd, Logan Central, are a weekly event run by Ethnic Communities Council of Logan Inc. with support from Logan City Council.

The majority of the produce on sale is sourced from backyard gardens and community vegetable plots across the city and includes ingredients suited to Asian, African, Middle Eastern, Indian and Pacific Island cuisines.

For more information on the weekly Global Food Markets go to globalfoodmarkets.com.au

Retail interest piqued for new SEQ food destination

One hundred and fifty interested retailers attended a night of discovery, at the official unveiling of commercial leasing opportunities at Distillery Road Market (DRM).

Held onsite at Kiwanda Café on Thursday 29th August, the event combined live music, drinks and presentations from key spokespeople, including the developer of the project, Zarraffa’s Coffee entrepreneur Kenton Campbell.

Throughout the evening, attendees were presented with information designed to answer key questions about the new precinct and hear about the diverse range of flexible spaces available to establish or grow their businesses.

Director, Strategy and Sustainability at Logan City Council, David Hansen, addressed the crowd expressing positivity around the attraction of a destinational project of the scope of DRM to the city, which aligned perfectly with Logan City Council’s strategic vision for growth in the region.

Mr Hansen explained the many benefits of the DRM project for the Logan area, including the improvement of liveability for the residents, it’s influences on driving tourism to the area, as well as increased employment opportunities.

Mr Hansen affirmed that Logan City Council is fully behind the project and are eager to see the vision realised to its full potential in late 2020.

Kenton Campbell, addressed the attendees, delivering an impassioned overview of his ‘retailer first’ approach to being a landlord as CEO of Tonken Property Group, the DRM project developer.

“It will be a great environment and fair-trading platform where tenants have the opportunity to deliver something truly special and unique,” he said.

“Our trading conditions are an indication of how DRM is seeking to ensure retailers thrive with a four-day trade week, from Thursday to Sunday, with select operators given the ability to trade up to seven days a week.”

Associate Director of Retail Leasing for Colliers International, Luke McGrath, also addressed guests revealing that Colliers was initially apprehensive about taking on the project – a project that doesn’t fit the standardised shopping centre model – until they saw the vision and realised that it was going to be something special.

He explained how the precinct would operate as a proper market; an incredible experience-fuelled destination.

“With flexible lease lengths, a range of fitout inclusions and a compelling events and marketing strategy, DRM is sure to entice only the best operators in the market,” said Mr McGrath

At the conclusion of the presentations, attendees were invited to view the Zarraffa’s Coffee headquarters and the DRM space before attending an in-depth precinct leasing presentation in the new amphitheatre, showcasing the trading opportunities in further detail.

All guests were invited to fill out an expression of interest form and so far, interest is high.

“We are thrilled with the turnout to the retailer event but also in general to leasing enquiries and commercial interest,” said Mr Campbell.

“DRM is a fantastic opportunity for retailers to build their business in what is expected to be a truly exceptional market that will transform people’s expectations of what is possible from a lifestyle destination.

“We want the best operators, who see this as a home for their business. We only need one or two of each category; ultimately the opportunity is limited. But for those who are interested, I encourage you to get on board now.”

Expressions of interest can be lodged via www.drm.market or contact Luke McGrath – Colliers International luke.mcgrath@colliers.com | 0418 295 091

Whitewater adventure park to make a splash in Logan

Logan City Council has progressed its whitewater adventure park plans with the completion of a pre-feasibility study outlining a unique $65 million tourism asset that would also suit a future Olympic Games venue.

The Lucid Economics study shows the park would cater to a raft of activities including kayaking, canoeing, guided rafting, swift water rescue training, unguided rafting and tubing and inflatable obstacle courses.

A restaurant and retail component as well as trails, zip lines, challenge courses and areas ideal for school holiday programs, promotions and special events would also feature.

Logan City Council Director of Strategy and Sustainability, David Hansen, said the project would be an exciting tourism boon for the city and would provide significant economic benefits.

The study was earmarked as a priority under Council’s Logan Destination Management Plan 2018-2022.

“This pre-feasibility study is the first phase to see how a project like this would stack up and early indications are that it ticks all the boxes,” he said.

“With potential to become an iconic tourism asset for our growing city, the facility could also be adapted as an Olympic venue through the provision of associated spectator and safety infrastructure or used as a training venue for elite athletes.”

During the construction phase it is estimated that 147 full time jobs would be created with a further 114 employed once complete.

Given Logan’s sub-tropical climate, the facility could operate all year round. The provision of a dual channel facility will also help to maximise usage and revenue during busier summer months when elite athletes from the northern hemisphere could train during their winter in the warmer southern hemisphere climate.

“The possibilities are endless and its ideal location between Gold Coast and Brisbane would attract local residents in the broader region, interstate and international visitors, national and international elite athletes, school groups, corporates and children’s parties,” Mr Hansen said.

Following a Committee endorsement today, confirmation by Council resolution next week will allow officers to proceed with the development of a business case to facilitate investment and will include further work on identifying a preferred site.

Logan has a significant catchment of 3.1 million residents within an hour’s drive from the city. This population is expected to grow to around five million by 2041.

Distillery Road Market – Australia’s Next Food Experience Destination Commences Leasing

Distillery Road Market, a compelling destination designed to celebrate Australia’s love of fresh produce, dining and entertainment, is now calling for expressions of interest for a range of retailing opportunities.

Situated halfway between the Gold Coast and Brisbane in Beenleigh, Queensland and set to open in late 2020/ early 2021, Distillery Road Market (DRM) was formally announced as the name of Australia’s next great food market.

Rising from the ashes of a reclaimed commercial warehouse, the 17,000 sqm site is now being reimagined as a space for families, a source of regional growth and a magnet for tourists and the global food generation.

Opportunities for kindred retailers, food vendors and marketeers are now being tendered through Colliers International with over 4,500 sqm of lettable area on offer.

There will be a diverse range of flexible spaces available for forward thinking operators to establish or grow their business. Flexible lease lengths, a range of fitout inclusions and a compelling events and marketing strategy will ensure DRM entices the best operators in the market.

Kenton Campbell, CEO of Tonken Property Group – the project developer of Distillery Road Market – said the retail mix would reflect a growing trend toward more enriching retail, dining and social experiences.

“DRM actually brings together all the things I enjoy most in life – a wide variety of great food and beverage options, curated shopping experiences and a knock-out environment to sit back, relax and take it all in,” said Mr Campbell, who is also the founder of Australian specialty coffee success story, Zarraffa’s Coffee.

“I’m also both a retailer and a consumer, and I wanted to create a hub for everyone – both locals and tourists, families and couples, the young and old – somewhere that fuels all five senses.”

DRM will be established and run like a world leading market; rather than a traditional shopping mall. Trading across four days per week, from Thursday through to Sunday, DRM will transcend what is on offer in traditional retail precincts and transform people’s expectations of what is possible from a lifestyle destination.

“DRM will be unlike anything the south-east of Queensland has seen and will emulate iconic market experiences such as Chelsea Market in New York, Borough Market in London and The Grounds of Alexandria in Sydney and the South Melbourne Markets.”

DRM will house a curated offering of fresh food markets, grab-and-go eateries, restaurants, an iconic brewery, a thriving exhibition hall, a flower wonderland, Smokehouse, outdoor gardens, stage and children’s playground, enveloped by a vibrant market environment and activations.

“Our goal is that Distillery Road Market will be a statement to the world about food’s ability to support life and instil wonderment.”

DRM is expected to open late in 2020 with leasing opportunities now available, with the anchor tenant – the national headquarters of Zarraffa’s Coffee, including its roastery and warehouse and its bespoke Kiwanda Café – already situated within the precinct, occupying almost 7,000 sqm combined.

“The accessible location just off the M1 Motorway will attract a wide range of customers from diverse geographical and demographic backgrounds, exceeding a traditional trade area,” he said.

“It’s essential that we have the perfect balance of retailers, vendors and operators to deliver the DRM experience.”

Distillery Road Market site in Beenleigh

Luke McGrath, Colliers International Associate Director, sees a real opportunity to change the retail landscape in South East Queensland.

“Colliers are fortunate to work across many significant national retail projects. DRM is going to demonstrate to the retail community that by understanding the fundamentals of the modern retail environment, we can not only create a truly compelling destination for tourists and locals, we can provide a business environment that supports long term financial stability for operators,” said Mr McGrath.

Mr Campbell believes food remains the social glue that brings people and families together and that DRM will offer a truly exceptional fresh food and dining offer that will excite and attract people from near and far.

“We are searching for the region’s finest operators to join us and make Distillery Road Market a reality.”

Expressions of interest can be made via the http://www.drm.market website or by contacting Luke McGrath – Colliers International – 0418 295 091 | Luke.Mcgrath@colliers.com

Our sporting reputation gets another big boost

An events partnership that has brought thousands of visitors to the city and has the potential to inject millions of dollars into the local economy will continue in 2019/20.

Council has collaborated with a leading national sports, events and conference agency for the City of Logan to host a number of major events in the last 12 months, including the Touch Rugby League State Championship, the Royal Rumble Roller Derby and the Queensland PGA (golf) Trainee Championship.

Economic analysis shows the three events alone generated $1.5m for Logan’s economy and enhanced the city’s reputation as a significant events hub in Queensland.

Logan City Council Community Services Director Katie Barton-Harvey, said Council was committed to making Logan a destination of choice and delivering a broad selection of events for the city’s 326,000 residents who represent 217 different ethnicities.

“Each successful event generates a positive image of the city which translates into increased visitation and investment,” Ms Barton-Harvey said.

“This benefits the entire community and grows our reputation as a sporting and cultural hub.

“The growth and expansion of our Events Attraction Program will undoubtedly see more exciting opportunities come our way.”

Other events under consideration include the Queensland PGA Championship, the 2020 Squash Australia National Championship and the National Inline Hockey Championship.

Council is also on board with the Council of Mayors (SEQ) efforts to bring the 2032 Olympic and Paralympic Games to South East Queensland and contributed to a recent feasibility study ahead of a possible bid.

Should the Games come to Queensland, Logan will have two Olympic-standard venues ready to go with a BMX freestyle facility under construction and a whitewater park in planning stages.

Beenleigh’s Doug Larsen Park BMX Concept Art

Concept design for the $3.1m revamp of Beenleigh’s Doug Larsen Park BMX and skateboard facility.

Council is currently scouting locations and undertaking an economic feasibility study into the proposed whitewater park project, which would be a Queensland-first.

In Beenleigh, a $3.1million rebuild of Doug Larsen Park currently underway will give Logan what Cycling Australia has rated Australia’s premier BMX freestyle facility ahead of the sport’s debut at the Tokyo 2020 Olympics.

In a community-driven effort, Logan-raised BMX freestyle 2017 world champion Logan Martin helped design the BMX course and skate-park half-pipes along with representatives from Cycling Australia and the local BMX and skateboarding communities.

Paddle begins for Logan’s thrilling whitewater vision

Logan City Council has advanced plans to build an Olympic-standard whitewater park in the city with an economic feasibility study and site selections to be completed in the coming weeks.

The proposed whitewater park, which has been earmarked as a ‘game changer’ by Council in its tourism planning, would be a Queensland-first and one of only two in Australia.

American kayaker and slalom canoeist Scott Shipley, a three-time Olympic representative and three-time World Cup winner, scouted possible park locations with Council officers in recent weeks.

Shipley’s business, S2o Design, is a design and engineering company behind the construction of successful whitewater parks around the world.

The proposed park would meet Olympic-standard criteria and would be ready for use should the South-East Queensland bid for the 2032 Games be launched.

Logan City Council Interim Administrator Tamara O’Shea said such a unique facility for the state could act as catalyst for more tourism opportunities in Logan.

“This is an exciting project for Logan, something completely different to any other tourism attraction in the south-east,” Ms O’Shea said.

“I’ve been very impressed with the planning so far and it would be tremendous for this project to go from the drawing board to reality.”

Council began investigating the possibility of a whitewater park in 2016 and last year it was identified as one of four ‘tourism game changers’ in its Logan Destination Management Plan 2018-2022-Summary-low res.

The whitewater park was made a priority project because:

  • It would be the first of its kind in the state and only the second in Australia
  • It leverages off Logan’s open space and available land
  • It strengthens Logan’s potential as a major sporting and recreation hub
  • It can leverage off Logan’s proximity to major markets such as Brisbane and the Gold Coast
  • It can operate almost year-round thanks to a warmer climate compared to Penrith and Auckland where similar facilities are located

Other key projects identified in the Destination Management Plan include a branded hotel or serviced apartment complex, a destination holiday park and a riverine discovery centre.

Logan City Council also enlisted a world champion to help design a new world-class BMX freestyle and skate park facility in Beenleigh.

$3.1million rebuild of Doug Larsen Park will give Logan what Cycling Australia has rated will be Australia’s premier BMX freestyle facility ahead of the sport’s debut at the Tokyo 2020 Olympics.

In a community-driven effort, Logan-raised BMX freestyle 2017 world champion Logan Martin helped design the BMX course and skate-park half-pipes along with representatives from Cycling Australia and the local BMX and skateboarding communities.

KBF Precinct set to become major events destination

The redeveloped Kingston Butter Factory (KBF) Precinct will become the new home of large-scale entertainment in Logan in 2020.

The space will become the City of Logan’s largest outdoor venue, with a permanent stage and capacity for 5000 people.

It will be positioned to attract national and international touring acts, as well as festivals, markets and signature local events.

Located adjacent to the Kingston railway station, the venue will not only be a boost for Logan residents but will be easily accessible for visitors and those who live in neighbouring cities including Brisbane and the Gold Coast.

Ahead of its opening next year, Council has allocated funding to create an exciting program of events for the outdoor space that will appeal to all ages and ensure the KBF Precinct becomes a highly valued destination.

The outdoor space is part of the Kingston Butter Factory Precinct Redevelopment Project, for more information visit the website.