Warehouse spend hits 10-year high
Adelaide’s industrial property market is reaping the benefits of the wider economy with warehouse and building approvals at a 10-year high worth more than a quarter of a billion dollars.
The development industry has responded to state and federal government employment initiatives by completing almost 24,000sqm of industrial development in Q4 last year, according to LJ Hooker Commercial’s recently released Industrial Market Monitor
. And the delivery of pre-committed and purpose-built owner-occupant facilities is set to continue over the next 12-24 months, headlined by Metcash’s commitment to a new 68,000sqm facility at Gepps Cross, slated for completion in 2020.
The Monitor noted that total public and private investment in South Australia rose 4.3% in FY2017 before surging to 7% in FY2018.
Industrial specialist at LJ Hooker Commercial Adelaide
, Stan Tettis
, said there was a surge in supply on the back of economic optimism in the state. The value of industrial building approvals increased from $100m in 2017 to more than $250 million two years later.
“And even though the city is in a purple patch of industrial approvals, there’s very little on the books which is speculative,” said Mr Tettis.
Last year, Mr Tettis sold a land site at Wingfield for $1,550,00 representing a square metre rate of $189psm. The purchaser intends to construct a bulky good showroom catering to commercial and residential development.
Mr Tettis is now marketing an adjoining Wingfield site, an unfinished warehouse shell over a 6,030sqm gross floor area at 690 South Road. The overall site encapsulates 14,030sqm allowing for significant hard-stand or further development. Mr Tettis is seeking interest at $2.75 million plus GST.
“The property has become a bit of landmark because of its exposure and because its construction has been frozen in time,” said Mr Tettis. “The owner changed their business priorities more than a decade ago and, not needing to sell, has left the site as is.
“But the owner recognises the current demand for industrial sites and has decided to test the market. Because of the size and exposure on offer, we’re receiving positive feedback from interested parties.
“It’s an incredible opportunity in the Inner North.”
The Monitor found the average prime net face rent in Adelaide was $115psm with the average prime yield approximately 7.8%.
To find out more about the city’s industrial market, visit adelaide.ljhcommercial.com.au
For media information:
PR & Communications Consultant
LJ Hooker Commercial
M: 0427 916 020