NATIONAL OVERVIEW
SYDNEY
MELBOURNE
BRISBANE
PERTH
ADELAIDE
CONTACT INFORMATION
THE INDUSTRIAL LAND SHIFT
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What Does This Mean?
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Market Choice Is Narrowing
Greater Premium For Development Ready Land
Future Supply Depends On Conversion
Competition For Strategic Land Is Broadening
Occupiers Face New Trade -offs
A pricing premium has always existed for development ready land; however, developers and investors are being more aggressive on pricing for sites that offer delivery certainty compared to previous cycles. The depletion of institutional land banks has made land replacement an increasing priority across major markets.
Industrial land supply is increasingly concentrated in a small number of precincts, with five submarkets accounting for 65% of active land stock. Alternatively, active land supply in infill precincts represents less than 15% of active land supply nationally.
Australia possesses a substantial industrial land pipeline; however, much of it remains reliant on infrastructure, servicing and planning progression before development can occur. The challenge is increasingly converting identified land into development -ready supply.
The emergence of hyperscale data centres is increasing competition for sites in strategically located precincts, reducing the supply of land available for industrial occupiers and influencing where future industrial development is likely to occur.
As land availability shifts towards outer -ring precincts, occupiers must increasingly balance occupancy costs against freight efficiency, labour accessibility and customer proximity.
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