• Broadway Property team

How To Capitalise On The Warehouse And Industrial Property Boom

There’s always a silver lining to every situation, and right now in commercial property it’s the warehouse and industrial property boom. 

It’s no secret that our non-discretionary spending has gone through the roof through the global pandemic. Plus, as retail, hospitality and leisure-based venues take a hit from COVID-19 restrictions, more Australians have been drawn to the convenience (and safety) of online shopping.


The proof is in our spending habits – since February this year, 50% of our purchases have been eCommerce or food related, and in March and April alone, eCommerce experienced an 80% growth year-on-year. The non-discretionary sector has also grown from 3.3% to 6.2% year-on-year. 

As a result, industrial spaces have become crucial in ensuring these operations run smoothly. Greater warehouse and storage spaces are now necessary to facilitate the high demands, along with modern logistics properties and distribution centres. 

This warehouse and industrial property boom will impact many sectors. Our heightened awareness on health and wellbeing has boosted the manufacturing and storage of pharmaceuticals. Food-related cold storage spaces are also attracting potential investors, with the majority of supermarkets and food outlets now offering click-and-collect or delivery services. And with so many benefits to eCommerce and with online shopping becoming standard for most Australians, it’s inevitable that more and more retail businesses of all sizes will follow suit and invest in industrial properties to accommodate their digital transition.

So, you can feel confident that storage and logistics-related real estate will remain a favourable asset long into the future, and a great investment choice. And for business owners in these growing industries, you can be sure that competition for top industrial properties will be high so you’ll need a smart property strategy.

What are the next steps you should be taking?

Property owners:

Consider property upgrades

How can you optimise your property to capitalise on the boom? Consider how you make your property more suitable to the high demand industries we’ve discussed. If, for example, you’ve already got a warehouse, you may only need to make minor adjustments and updates. If you’ve got another type of property, you may consider re-positioning your asset to include new accommodation components such as warehouse / storage, or even introducing new technology or increased power supply to your property - for example, a storage facility for pharmaceuticals or a cold storage space for groceries.  

Consider and then plan for what property updates and renovations will maximise your returns and how they could attract quality tenants.

Has the value of your property changed?

Get multiple valuations from different sources, and take the time to understand and analyse the latest market data.  Don’t work off out of date information or data – the world has changed! An increased valuation could put you in a powerful position.

Revise your documentation

Be sure to update any contracts and agreements you have in light of the new market conditions. 

Talk to an expert

Seek advice from expert property specialists on what the boom means for you and your strategy. There may be plenty of opportunities emerging across multiple sectors, but a professional will help you identify the best long-term investment and way forward that will give you the greatest value and help you achieve your financial goals. 


Improve your tenant profile

With increased competition among tenants looking for industrial properties, you want to stand out to potential landlords. Consider how you can be a sought-after and reliable tenant. You could look to arrange longer term lease arrangements or create other opportunities favourable to landlords. Especially during these difficult times, remember to always be honest and open about your situation. 

Think outside the box

This may mean tenants will need to think about their strategy differently, and get creative to find the best fit and best value industrial property. Consider securing property in emerging but lesser known regions, or re-purposing your existing space.

Do your research

Understand the market data and do your research. Analyse information from multiple reliable sources and seek advice from property specialists who have greater knowledge on the current property opportunities and what they mean for you and your business.

Get advice 

We can’t emphasise this enough –seek advice on every step of the process, especially on commercial agreements. 

Team up with a property expert

It’s essential to get advice and support to ensure you make the right choices for your industrial commercial property strategy and make the most of these opportunities. 

Contact us to discuss your needs. No obligations. 

Ben Heritage, 

Managing Director, Broadway Property 

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Ryan Stewart 

Director, Broadway Property 

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