How occupiers are best using the available space.
Written by Ryan Carey, Associate Director | Industrial
Industrial property is an asset class in hot demand, and with land becoming scarcer in many popular markets, occupiers are now looking to new ideas to best maximise their available floorspace and site area to optimize operational efficiencies.
In my market of Western Sydney, land is at a premium with rental growth in some cases over the last 12 months exceeding 10-15%. The infrastructure layout of Western Sydney means that industrial precincts surrounding key junctions are seeing huge demand from occupiers for efficient warehousing facilities with covered hardstand areas.
Transporter occupiers who have line-haul operations are looking to park their B-Doubles, they need transport-specific facilities: having exclusive hardstand areas and the right facilities to load and unload is essential. Logistics occupiers are now facing a consumer market that often sees same-day and even 3-hour delivery as a new standard, they need outstanding last-mile strategies. Maximising business efficiencies through their industrial property has never been more important. Good quality industrial space with lower site coverage is in high demand: it is extremely rare in core areas.
It has led occupier groups to work to find the best solution for their business across the whole property, including both drive-around and drive-through options, along with an increasing trend towards the “super awnings”.
For larger warehouses from 10,000sqm and up, developers will allow for an awning of 15m covering a portion of the hard stand area as this is an essential requirement for most larger occupiers for weather protected loading and unloading. Now we’re seeing some developers meeting a growing demand for a “super awning”, which are typically 36m. The super canopy allows for all weather loading and allows an occupier to maximise the storage capacity inside the warehouse and do their staging outside under the canopy as well as allowing B-Double trucks to manoeuvre within the covered area.
This super awning is becoming an increasing preference for larger logistics and transport occupiers, and developers are sitting up and taking notice. Charter Hall’s newest development Wetherill Park Distribution Centre will feature a super awning along with 13.7m internal clearance for maximum building efficiencies.
This development, due for completion Q3 2019, will appeal to logistics and transport users looking to take advantage of the efficiencies offered under a best-in-class facility.