As the online shopping boom continues post-pandemic, demand for industrial assets remains strong. Logistics, storage and distribution have increased in importance in the supply chain, prompting a positive outlook for the industrial sector.
Knight Frank’s National Industrial Market Report, released March 2021, shows there has been a 7 per cent decrease in vacant space across the east coast in the December 2020 quarter with national investment volumes rising to a decade-high.
Also in 2020, a 13-year high in new industrial developments was seen, with 2021 slated to exceed last year’s new square metre pipeline. Long-term confidence in the sector is evident with the rise of investment in industrial assets bolstered by the resilience of the asset class even during the pandemic and strict lockdowns.
“The local market resilience has been very strong and impressive,” said Julian Vautin, Senior Sales and Leasing Executive, Nichols Crowder. “The transactions recorded at our Moorabbin office are a testament to small business resilience and their ability to make medium to long term decisions on their business direction in the face of a global pandemic.”
The demand for industrial assets has also been seen at Riverlee’s Belrose community in Cheltenham, located in Melbourne’s south east, to be developed in partnership with Brico. The South stage, launched in late 2020, saw a significant level of interest immediately upon launching, with 50 per cent of spaces sold in the first two weeks.
Encompassing 24 new office warehouse and showroom spaces, properties at the South stage range in size from 141sqm to 281sqm and are situated adjacent to the original 1950s warehouse that will comprise the North stage. The North stage will add to the vibrancy of Belrose by converting the original building into a further 30 warehouse-style offices, workspaces and showrooms.
Riverlee development director David Lee said Belrose is not only unique but transformative for a suburb such as Cheltenham, boasting characteristics more akin to premier inner-city fringe addresses.
“We are living in an era of fundamental transformation in the way we work – we are shifting towards valuing authenticity, experience, flexibility, technology, sustainability and wellness, and workplaces need to adapt in order to support this transition and encourage progressive business. Belrose is providing unique workspaces that meet the needs of today and tomorrow, catering to many businesses that are experiencing a boom and require flexible space,” he says.
To find out more about Belrose, visit workbelrose.com.au