IT WOULD SEEM the growth in eCommerce is creating a surge in speculative Warehouse development. And along the east coast, the volume of new space to 30 June has exceeded that for the whole of 2018.
During last year, there was 422,000 sqm of speculative development. And yet there have already been over 550,000 sqm of space built so far this year.
And the appetite by major investors doesn’t seem to be slowing.
As you see, last year, Sydney was the standout. But so far this year, Melbourne seems to be gaining ground – expecting to reach record levels by the end of 2019.
Distributors, logistic firms and certain retailers are eager to improve their efficiency levels … pre-committing to around half the space coming on stream.
Bottom Line: This is great news for those of you already holding Industrial property. However, for any investors looking to enter the market, you should probably proceed with some caution – because the market is becoming a little overheated.