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THE INDUSTRIAL LAND SHIFT
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Introduction
Australia's industrial land market remains characterised by a disconnect between identified land supply and development - ready land. While almost 12,600 hectares of industrial land has been identified nationally, less than 20% is considered active and developer controlled. The primary constraint facing industrial development is not the availability of zoned land, but the delivery of serviced land. Infrastructure, utility capacity, planning coordination and fragmented ownership continue to delay the conversion of identified land into development -ready industrial estates. In some states, the process to convert zoned land into active land supply can take up to five or more years.
At the same time, industrial land is supporting a broader range of uses. Alongside logistics occupiers, hyperscale data centre operators have become significant purchasers of industrial land, particularly in Sydney and Melbourne, reducing the supply of future warehouse development opportunities within established precincts. The continuation of this trend and a strengthening pre -lease market would mean active land stocks would be absorbed faster than they can be replenished. As a result, the availability of serviced industrial land, rather than the volume of identified land, is increasingly determining industrial development activity, land values and occupier location decisions.
Luke Crawford Head of Logistics & Industrial Research – AUS luke.crawford@cushwake.com +61 421 985 784
David Hall Head of CRE & Brokerage Logistics & Industrial - ANZ david.j.hall@cushwake.com +61 428 242 410
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