Colliers Adelaide Industrial & Logistics team have in-depth knowledge and expertise in the various factors impacting the market and where the key opportunities are for those seeking Industrial property. The team consists of committed sales and leasing experts, Tom Barrett | Director, Paul Tierney | National Director and Luke Brown | Executive. Each bring experience and extensive industry knowledge to the property process for clients and occupiers.  

The Adelaide industrial & logistics market continues to experience robust demand in both the leasing and sales sectors. This substantial demand underscores a positive market sentiment for the upcoming year in Adelaide, with the Colliers team prepared to assist their clients in divestment, leasing, and acquisition of industrial assets. Whilst offering strategic advice and expertise through accurate data and market knowledge.

“The leasing sector is predominantly reflecting this, with the team actively working on over 45,000m² of new leasing enquiry in the first 6-8 weeks of 2024.” mentions, Mr Barrett.  

The leasing market across Adelaide in the last few years has been starved of prime Industrial & Logistics stock, with demand continually outweighing supply. However, with a number of speculative developments nearing completion in the first half of 2024 this increase in new supply will assist in combatting the current supply issues, with the take up of this new space expected to be swift.

One of these Prime developments include Fife Capital’s Wingfield Logistics Park providing approximately 19,000m² of brand-new high quality industrial and logistics space. The Colliers team are currently appointed on the project with a number of confidential commitments already secured and strong interest in the remaining speculative development units and future development options.

“Focus for some Occupiers and Investors has been a flight to quality, the demand for these Prime assets remains and has never been stronger.” Notes, Mr Tierney.

Colliers Adelaide Industrial & Logistics team are well-versed in current opportunities as well as upcoming ones, leveraging their extensive market knowledge and experience to consistently aid clients in making informed business decisions and timing their moves effectively.

Furthermore, alongside the rise in demand across the Adelaide Industrial & Logistics market, rental growth has also continued to occur driven by the increased demand and a lack of supply.

Across 2023 the Adelaide market experienced rental growth of 7.2% for prime grade facilities greater then 5,000sqm, with average rents for these prime and A grade assets in the Inner North currently sitting between $130-$150 psqm (Net). However, rental growth is expected to continue throughout 2024 albeit in a less aggressive manner than recently experienced. The team anticipate while face rents will start to stabilize the incentives will come under pressure as supply increases through development and back fill space is offered back to the market.

“The Inner West market is outperforming average growth in terms of rental and land values driven by a number of factors including the proximity to the city and the displacement of a number of occupiers located on the latest section of the North South Corridor upgrade. Demand has surged as a result, and we have seen increased demand and activity for this tightly held precinct close to the CBD and Airport” mentions Mr. Brown.

In addition to the increased leasing activity in the Western precinct, the team continue to experience strong demand from buyers seeking to acquire industrial facilities in this precinct. They are  witnessing significant growth in land and capital values with record rates being achieved, with rents pushing upwards of $200psqm (Net) for quality sub 1,000sqm facilities and land rates achieving in excess of $1,000psqm.

Colliers’ Industrial & Logistics Adelaide team have been involved in some of the market leading and enquiry heavy transactions. One standout transaction being the sale of 257-259 Richmond Road, Richmond, which experienced record enquiry levels, receiving upward of 100 enquiries with the team hosting back-to-back inspections at the property, on an almost daily basis during the campaign.

Looking ahead at 2024, the Adelaide Industrial market remains attractive to occupiers and investors alike, with no stamp duty on non-residential real estate and the competitive advantage. Along with relative affordability offered in South Australia compared to other states, will continue to draw investors and occupiers to this state.

“Reach out to the team today to start your industrial and logistics property discussion. We are well equipped with extensive market knowledge to help your business make informed property decisions,” said Mr Barrett.

The Adelaide Industrial & Logistics sector stands resilient and reflects a positive sentiment for the year ahead.

More Colliers Industrial Reading:

Logos’ prime grade stand-alone facility leased to Slattery Auctions - Colliers  | The Industrialist

A landholding and substantial industrial asset for sale with future value added in rapidly expanding Geelong is set to attract investors and developers alike - Colliers  | The Industrialist

Melbourne West last-mile Industrial development property accesses 1.6M households in under 60 minutes - Colliers  | The Industrialist

Colliers transact $42 million across 16.5ha of industrial sales in Brisbane’s western corridor | The Industrialist

2024 Commercial property frontrunner: Industrial’s performance anchored by structural shifts - Colliers  | The Industrialist