A report by Oxford Economics Australia has found that the industrial property sector sees $1.2 trillion worth of goods pass through its factories year on year.
In order to speed up delivery times and consumer demand, the Property Council – who commissioned the report – believes amendments to zoning and planning laws will ensure supply chain efficiency.
Currently, approximately 44 percent of all goods moving through industrial sites are consumed by other businesses locally or overseas, while 34 percent end up in Australian homes. 54 percent are imports or exports.
“To support the growth of online shopping and consumer demand for faster delivery times, we need more warehouse space near key population centres,” says Property Council Group Executive Policy and Advocacy Matthew Kandelaars.
“Finding suitable land for warehouse facilities is a tough task, with land and zoning constraints, delays in utility connections, inadequate public transport and infrastructure and encroachment on industrial corridors putting strain on the market.
“Meeting the needs of our growing population will require increased industrial assets. The important role these assets play in our economy cannot be understated.”
Kandelaars says a change in warehouse typology could hold the key to increased industrial supply.
“Industrial zoned and development-ready land close to our population centres is needed to keep supply chain costs low and delivery structures efficient,” he says.
“One solution includes the development of multi-storey warehouses – going up, not out - to optimise space, which is a common and growing practice worldwide.
“Our planning systems need to be flexible and encourage investment in a property class that every Australian relies on.”
The report found that transport, postal and warehousing businesses are the largest tenants of industrial facilities at 31 percent, with retail trade (26) and wholesale (11) ranking second and third respectively.
Image: The Bannister Downs Creamery Shed
