Strong demand for industrial space across South Australia continues to stretch available stock with enquiries at an all-time high and vacancy at an all-time low.

According to JLL Head of Logistics & Industrial in South Australia, Martin James, and JLL Director, Logistics and Industrial, Kym Hutchins, the industrial market has rarely experienced such strong conditions.

“The market is really under pressure to meet the requirements of an industrial sector which has blossomed during and post-COVID-19, especially on the back of the surge in online trading,” Mr James said.

He said demand for space at the Charles Sturt Industrial Estate at Woodville was a case in point, with recent leasing to global and national firms and strong enquiries for further opportunities.

Located about 8 kilometres north-west of Adelaide’s CBD,and 7 kilometres from Adelaide Airport, the estate has already attracted the likes of corporates including Harvey Norman, Bunnings, Toll, Rinai and Ironman 4x4.

Two of the more recent leasings were to global freight services firm Rohlig Logistics and national and international kitchen and cabinet hardware distributor Wilson & Bradley.

Mr Hutchins, who brokered the deals with Mr James, saidboth firms had agreed terms on substantial buildings on Cheltenham Parade, with Rohlig taking a 2700 square-metre space on a seven-year term and Wilson & Bradley a five-year lease over 3220 square metres.

“These leases were based on the quality of the building and,perhaps more importantly, the great location with excellent transport access and relatively close proximity to the CBD, the airport, South Road Superway and Port River Expressway,” he said.

“They also reflected the dearth of stock, not just for this part of Adelaide, but pretty much for the entire industrial market in SA.”

He added that enquiries for more stock on the estate remained very strong including for a currently available space – Building 2, Tenancy 4, Cheltenham Parade.

“There’s been a lot of interest in Tenancy 4 at this very early stage of the marketing campaign, and that has been the story with just about every leasing opportunity that comes to market at the moment,’’ Mr Hutchins said.

The brand new, high-clearance (10 metres) Tenancy 4 building, also in Cheltenham Parade, comprises a 5087square-metre floor area, including 4877 square metres of warehousing, 210 square metres of quality office space, two recessed loading docks and ample hardstand and on-site parking. Leedwell Property is the conjunctional agent.

Mr James said the heightened level of leasing activity was also a vote of confidence in the South Australian economy and its prospects.

“The South Australian economy has been going very well,” Mr James said. “In fact, in 2022-23, we recorded the fastest economic growth of all states for the first time ever, and that sort of performance is not lost on prospective tenants including global and national occupiers.”

The CommSec State of the States report (2022-23) ranked South Australia’s economy number one in the nation, while the unemployment rate remained at a near record low of 4 per cent, below the national average of 4.1 per cent.