NATIONAL OVERVIEW
SYDNEY
MELBOURNE
BRISBANE
PERTH
ADELAIDE
CONTACT INFORMATION
THE INDUSTRIAL LAND SHIFT
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Data Centres: What Is The Impact To Occupiers?
Data centre operators are paying significant premiums for strategically located industrial sites, and in some cases, the premium can exceed what an industrial developer can pay by more than 50%. This has implications beyond competition for industrial land. As data centre transactions become a more established component of the market, they have the potential to increase statutory land values, driving a potential sharp increase to land taxes and council rates in key industrial precincts. What does this mean for occupiers? Based on recent transactions in Sydney and Melbourne, data centre sales could contribute to statutory land value increases of more than 10% per annum over the next three years, adding to existing occupancy cost pressures. -connected industrial land intensifies, occupiers may increasingly need to consider exposure to statutory valuation increases alongside rent and outgoings when assessing long -term location strategies. As competition for power
Sydney Data Centre Land Pricing Premium to Industrial Buyers ($/sqm), Transactions Since 2020
$2,500
+35%
+42%
$2,000
+67%
$1,500
$1,000
$500
$0
Raw & Zoned
Zoned & Serviced
Zoned, Benched & Serviced
Data Centres
Developers & Owner Occupiers
Average Prime Outgoings by City ($/sqm)
$0 $20 $40 $60 $80
Sydney
Melbourne
Brisbane
Perth
Adelaide
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