A weakening industrial market is pushing developers to convert manufacturing spaces into community arenas, in order to make money from completed projects.
“The industrial market is dead,” Pressley & Temelko partner, Bruce Pressley, told Architecture & Design. “A lack of activity in the Australian manufacturing industry has weakened demand for industrial space and caused a slump in the sector.”
Pressley said the trend is pushing developers to find alternative uses for industrial developments in highly sought-after areas of Sydney.
“Manufacturing spaces in Botany Bay and Alexandria are being converted to apartments and community areas that are in higher demand,” he said.
According to Pressley, the trend is creating a bulk of work for architects, who are required to strip the entire structure and redevelop the space.
“The entire interior space has to be reworked, along with lighting, electrical, plumbing and ventilation systems,” he said. “There is a lot of work involved for architects, designers and contractors.”
While the building conversions do not come cheaply, Pressley said they are still more economical than starting from scratch.
“It is a logical step for developers so they can make money out of projects that would otherwise just accumulate fees and charges,” he said.
He said developers benefit by capitalising on markets that are in hot demand as interest rates drop and investment properties become more affordable.
“Conversion of existing uses is definitely becoming a larger sector and creating more work in the industry,” Pressley said.
