One of the latest trends in industrial property is that occupiers are becoming far more discerning in their requirements when selecting a property. In particular, businesses are looking at energy costs, strategic site selection, outsourcing of logistic functions and international brand expansion. Let’s look at these more closely.
Energy Costs
Warehouse lighting and solar energy are two areas receiving an increasinging amount of attention.
The Sustainable Melbourne Fund has been set up to encourage energy-efficient solutions and to fund such projects. For approved projects, funding is made available at no cost to the landlord/ tenant or the business owner. Funds will be paid back through a municipal rate surcharge, for a set number of years, and will be lower than the savings generated.
Strategic Site Selection
Speed to customer is now a major consideration and 24/7 fulfilment. There is an increasing preference for prime sites offering the best access to road networks to enable the quickest response times. Distribution costs are becoming a major factor, so businesses are looking at ways to boost efficiency. Larger, consolidated facilities provide greater economies of scale, helping to keep costs down. High bay storage, automation and smart technology are other major influencing factors.
Outsourcing Logistics Function
There is a growing trend for medium-sized companies to embrace outsourcing of their warehousing and distribution functions, while the core sales and marketing functions remain in house. Larger companies generally are not following this trend.
International Brand Expansion
As the Australian population continues to grow, it’s becoming more attractive for international brands to enter the market. This trend will continue, so international businesses will be looking for industrial property to support their Australian operations.
by Atholl Williams in Latest News
Archived Posts
- February 2024 (2)
- November 2023 (3)
- July 2023 (3)
- March 2023 (1)
- September 2022 (1)
- June 2022 (3)
- March 2022 (1)
- February 2022 (6)
- May 2021 (2)
- March 2021 (1)
- February 2021 (1)
- December 2020 (1)
- November 2020 (1)
- October 2020 (1)
- September 2020 (1)
- August 2020 (1)
- July 2020 (4)
- February 2020 (1)
- December 2019 (3)
- August 2019 (1)
- July 2019 (1)
- June 2019 (1)
- March 2019 (4)
- February 2019 (3)
- December 2018 (3)
- November 2018 (3)
- October 2018 (3)
- September 2018 (3)
- August 2018 (3)
- July 2018 (3)
- June 2018 (3)
- May 2018 (8)
- April 2018 (3)
- March 2018 (2)
- February 2018 (3)
- December 2017 (3)
- November 2017 (4)
- October 2017 (5)
- August 2017 (3)
- July 2017 (3)
- June 2017 (3)
- May 2017 (3)
- April 2017 (10)
- March 2017 (3)
- February 2017 (4)
- December 2016 (5)
- November 2016 (10)
- October 2016 (6)
- September 2016 (6)
- August 2016 (3)
- July 2016 (3)
- June 2016 (2)
- May 2011 (1)