Australian cities and major urban areas are growing at such a rapid rate that the competition for prime warehousing facility locations is fierce. Recent monitoring here at Urbis shows that industrial vacancy rates in Australia’s three largest cities at Quarter 2 of 2023 averaged 1.03%. This is a slight increase from the historically low average of 0.5% from the six months prior.
Demand for certain services is only set to rise as major Australian cities continue to densify. Available land in our urban areas is scarce and expensive. This combined with the increasing need for industrial spaces means we as cities need to adopt a different approach to warehouse developments.
Multi-storey warehouse development refers to, as the name suggests, the construction of industrial buildings with multiple floor levels. They are specifically designed to house multiple tenancies, rather than one individual tenant spread across different levels. This style of industrial space provides greater usable floor space, which given the scarcity of land available in our built-up neighbourhoods, is an important consideration.
While it is likely that traditional single-story industrial warehouses will remain the dominant style of industrial development for the short-medium term future, select areas with specifically low vacancy rates could see an increase in multi-storey developments.
To read more about multi-storey developments, their economic drivers, and our experts’ future directions for industrial development you can view our full report here: Multi-Storey Full Report
For a conversation about multi-storey industrial development, please get in touch with one of our team: