August 2017 :: Latest News
New Industrial Building Trends
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.
