Queensland's mining towns are experiencing mushrooming rents for industrial space on the back of demand from equipment hire companies supporting gas projects worth $80 billion.
Industrial rents almost doubled in the southern Queensland town of Chinchilla - where the gas is sourced - over the past two years, according to data from Colliers International.
The rents have increased 30 per cent there in the past year alone.
Further north in the port town of Gladstone, from where the gas is exported, rents have also climbed 30 per cent in 12 months.
Colliers International's Corporate Solutions director James Douglas said Queensland stood out because of its serious lack of existing infrastructure and development.
"We have only honed in on a few towns but I don't think you pretend this is not happening in other towns as well," he said.
"I don't see any sign of the pressure on rents slackening off."
Mr Douglas said many tenants operated on three-year gas supplier contracts so preferred to take short-term leases rather than buy.
The majority of the demand is from hire companies trying to house their equipment and keep up with demand for their machinery.
The head of construction company Watpac's civil and mining division, Hedley Davis, said he had noticed a dramatic time lag for the delivery of equipment for those willing to pay for it.
"Caterpillar's delivery on 120 tonne excavators has gone out to two years and that gives you some idea as to how hot it is right now," Mr Davis said.
"Most of the delivery times have gone out six months and this has all happened in the last year or so."
Rents in Gladstone have risen to between $135 and $180 per square metre from a $100 to $145 per square metre at the start of 2011.
However, as demand to rent industrial space has crept up, there is still demand to buy space.
It is also flowing into major cities such as Brisbane where international equipment hire company Komatsu will open its $55 million headquarters in Wacol today on Thursday.
Queensland Treasurer Tim Nicholls will open the building, which is Komatsu's single-largest investment in Australia to date.
Copyright 2012 Fairfax Media Publications Pty. Limited. All Rights Reserved.
