Strong e-commerce demand driving industrial developments 

Strong demand for high quality logistics facilities to support the needs of e-commerce and other growth businesses is underpinning the progress of industrial developments across the east coast of Australia.

Despite the challenges of the pandemic for the retail sector, a major shift is occurring with the share of online retailing growing at a much faster rate than pre-COVID-19. This boom in e-commerce and Third Party Logistics providers shows no sign of abating with an increased surge in online shopping as customers progressively convert to digital channels. 

Online and omni-channel retailers with established e-commerce channels are benefiting from this accelerated growth, resulting in companies looking to expand their footprint and seeking more high-tech and efficient premises to keep up with customer demand. According to NAB, online sales increased by approximately 50% in the year to May 2020 to represent a  10.3% market share of retail sales with further upside forecast.

This is translating into strong leasing momentum for quality industrial properties such as Dexus/Dexus Australian Logistics Trust’s (DALT) latest industrial developments at LOOP in South Granville in Western Sydney and Freeman Central in Richlands, Brisbane.

LOOP, South Granville NSW 

Construction is progressing well at the 10ha site, 57,000sqm across 4 buildings with handover of the first stage of development for 20,500sqm pre-leased to existing e-commerce 3PL customer WINIT. There has been active enquiry from food production and distribution occupiers who are particularly attracted by the key central west location and exceptional ‘last mile’ connectivity to 3.2 million residents, or 70% of Sydney’s population, within a 40 minute radius. 

This strong leasing momentum has translated into 50% of the estate being pre-committed to corporate sophisticated occupiers, six months ahead of completion. The whole estate on track to compete mid 2021.

The development incorporates leading sustainability features including light-filled office spaces, translucent roof sheeting, solar opportunities, daylight harvesting and LED lighting as well as water saving measures to ensure optimal environmental performance, operational efficiencies and cost reductions.  

Freeman Central, Richlands, QLD 

Practical completion has been reached on Stage 1 at Freeman Central, one of the largest build-to-lease warehouse facilities in Brisbane. Located in the South West Corridor in one of the city’s most sought-after industrial locations, it is the only new industrial space currently being built in Richlands. The ultra-prime, next generation estate spans circa 55,000 square metres across five warehouse facilities, and has attracted Third Party Logistics customers with a strong alignment to e-commerce.

Dexus/Dexus Australian Logistics Trust acquired the large 9-hectare industrial infill development site in Richlands in April 2019. The first stage completed at Freeman Central comprises three facilities across 34,500sqm and has been delivered in line with the original program despite COVID-19 restrictions.

These state-of-the-art premises are designed with 35 metre super awnings and a 13.7 metre internal clearance height. High quality flexible office spaces enhance operations while operational efficiencies and cost savings measures include renewable energy options with a 99 kilowatt solar array installed.

Sophia Rao

Investor Relations Manager

Freeman Central, Richlands

LOOP South Granville

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