From ‘just in time’ to ‘just in case’, supply chain crunch hits big sheds

Industrial rents in Melbourne’s west are now exceeding $100 per square metre net for quality speculatively developed assets, with limited supply for the rest of 2022.

“Vacancy for assets 10,000 square metres and above is currently less than 0.5 per cent, and is a significant problem for many of the growing logistics and 3PL operators,” Grima said.

Pike said circumstances are similar in Sydney. “We don’t anticipate this continued imbalance of supply and demand to plateau or ease until late 2023, potentially into 2024,” he said.

Stockland executive general manager of workplace and logistics Tony D’Addona said the company hopes to ease the supply problem with $1.2 billion of active development projects.

D’Addona is accelerating Stockland’s logistics pipeline in response to “strong demand, and low vacancy rates that are being driven by growing investment in onshore supply chains.”

Stockland’s new builds in Leppington, Ingleburn as well as Padstow and Warwick Farm have a combined book value of more than $590 million and will be built to high sustainability standards.

“Our logistics assets on the eastern seaboard alone amount to more than 1.2 million square metres of gross lettable area, and we recognise Sydney’s southwest as a critical market for logistics space,” D’Addona said.

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Hospitality, commercial kitchen equipment and catering supplier Nisbets Australia and IFC Global Logistics, a leading international freight logistics and warehousing company, are taking space in Leppington, while Stockland is in advanced discussions on the majority of space at the Ingleburn Logistics Park.

On the sale side, interests associated with private fabric supplier Ricky Richards are offloading three adjoining industrial facilities on three separate titles at 179-181 & 185 Parramatta Road and 16 Park Road at Homebush West, with price expectations from $30 million.

Frank agents Angus Klem and Wally Scales said the properties, which cover 10.470 square metres, are being offered for sale in one line or individually.

Klem said it is a strategic infill location in Sydney’s inner west and will benefit from the local and regional infrastructure and transport network currently under construction in the area where vacancy sits at close to zero.

“Commanding a prominent landholding of over 10,000 square metres, this offering presents an extremely rare opportunity for an incoming purchaser to acquire a landmark site in the tightly held Homebush industrial precinct,” the agents said.

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