Industrial land supply has been of ongoing interest to Broadway Property office. Recently, a research report issued by global commercial real estate company Cushman and Wakefield highlighted some significant challenges to industrial land supply nationally.
The research refers to the amount of land available and suitable for industrial development within a specific region and encompasses several key aspects including;
- Availability – The quantity of land that is zoned or designated for industrial use.
- Suitability – Factors that determine suitability include zoning, infrastructure, location, environmental factors and topography
- Accessibility – How easily businesses can access the land, including transportation links and proximity to markets.
- Cost – The price of industrial land can vary significantly depending on location and suitability.
The report highlights industrial land supply across Adelaide is currently limited, with only 166Ha of active land available and a take up of 67Ha of land per annum (equating to 2.5 years of active supply remaining). Based on this, Adelaide ranks as the poorest-performing capital city in Australia.
The majority of Adelaide’s land supply is located within the Outer North submarket and includes the key precincts of Direk, Edinburgh and Burton and while there is potential supply relief over the long term in the Outer North, this land is yet to be rezoned and is currently not serviced, meaning it is unlikely to be unavailable for development within the next five years.
So why is Broadway Property tracking this topic closely and how does it affect commercial property?
As industrial land develops, it creates demand for supporting commercial properties, including.
- Offices for administrative and management functions of industrial businesses.
- Warehouses and distribution centres which are a component of the commercial property market.
- Retail to serve the workforce within industrial areas.
- Hospitality such as hotels and restaurants, to accommodate visiting clients and employees.
Limited industrial land supply in Adelaide indirectly benefits its entire commercial property market by fostering business confidence, generating employment for a growing population, and driving overall economic growth fueled by key sectors like technology, defence, and manufacturing.
If you’re interested in discovering more about industrial land supply, the market experts at Broadway Property can assist you in navigating the field.