Industrial property markets in Australia and abroad are benefiting from the ‘new normal’ as eCommerce surges in retail’s shift to contactless shopping options amidst the global health crisis.
In Australia, JLL recently reported that industrial take-up from retail tenants represented 22% of total gross take-up in 2019, with this figure exploding to 51% or 693,733 sqm of leased floor space in 2020 YTD.
Managing Director, Colliers International – Sunshine Coast, Nick Dowling, confirms that buyer interest in industrial land has also continued to increase locally at Chevallum Industrial Park, throughout 2020.
“Since 1 March this year, we have sold five industrial lots totalling more than $4.8M at Chevallum Industrial Park, with an additional 11 lots now under contract.”
“The majority of our buyers are owner-occupiers however completed developer stock is also being snapped up.”
Lots have sold for prices between $285 – $340 per square metre.
Remaining lot sizes at Chevallum Industrial Park range from 1,500 m² to 5,168 m² and represent an excellent opportunity for strategic positioning in South East Queensland, only 60 minutes from Brisbane CBD and 15 minutes from Maroochydore.
Although Australia’s eCommerce penetration lags behind countries such as China, the United Kingdom and the USA, the rapid shift to contactless purchasing brought about by the pandemic is seeing penetration accelerate beyond previously anticipated levels.
According to Australia Post, eCommerce growth was up more than 80% year on year in the two months following the WHO’s declaration of COVID-19 as a pandemic.
Australia Post had forecast that online shopping would represent 16-18% of total retail spend by 2025, however recent growth suggests the pandemic will bring this forward with estimates that online retail spending will hold a 15% share of the total retail market by the end of 2020.
The global health crisis has led consumers to move away from traditional bricks and mortar retail shopping and increase adoption of contactless purchasing options such as eCommerce, in a behavioural change that may be here to stay.
JLL research in the USA indicates that industrial floor space take-up represented by eCommerce almost doubled from 11.8% in 2019 to 20.8% in 2020, with the UK experiencing similar levels of increasing demand.
Both industrial leasing and logistics are likely to experience ongoing benefits from increasing demand driven by Australia’s growing shift to online retailing.
Master-planned and ready for a range of businesses including manufacturing, logistics, showrooms, commercial office space, storage and more, Chevallum Industrial Park offers a rare opportunity to secure large format sites.