How e-commerce translates to property

How e-commerce translates to property

Mirvac Group (Mirvac) has commenced construction on Building 3 at the Calibre industrial estate at Eastern Creek in Sydney, with the office and warehouse facility being delivered on a speculative basis.

The building offers a blend of functional warehousing and advanced specifications, allowing for operational efficiencies across office and warehouse spaces of between 6,000 to 20,000 square metres in size.

A key driver for the delivery of Building 3 is the increasing growth of e-commerce or ‘e-tailing’, a movement fuelling the uptake of industrial property in Australia.

Australia Post’s 2017 Inside Australian Online Shopping Report shows Australians spent $21.7 billion shopping online in 2016, an increase of 10.4 per cent compared to 2015. The research also found that growth in online spending outperformed bricks-and-mortar retail by 6.9 per cent.

Development director office and industrial at Mirvac Fabian Nager said e-commerce is driving demand for industrial assets in Western Sydney and influencing a change in the requirements of those facilities.

“Industrial leasing activity to retail tenants within Western Sydney is tracking at approximately double the ten-year average since the beginning of 2016. As demand rises for online goods and services among the Australian population, e-commerce businesses are looking to secure strategically located, functional and flexible warehouses to improve operational efficiencies and future proof their businesses.

“Building 3 has been designed for the evolving nature of the industry, with a focus on occupier amenity and enabling the use of current and future logistics technology. We have included a number of key future-proofing initiatives, such as concrete floors that are capable of supporting nine-tonne point loads, and a 20-metre cantilevered awning spanning the length of the building that will  maximise all-weather functionality.”

Research from Colliers International shows e-commerce currently represents 40 per cent of the online retail market and has been consistently increasing over the past 12 months.

National director of industrial at Colliers Gavin Bishop said the trend is driving the need for flexible warehouse requirements, as speed and scale are paramount to a business’ success.

“Design considerations for modern industrial estates must include an increased use of robotic and mobile automation, greater cubic capacity, and a quality indoor working environment.

“Online sales in Australia are thriving. The current demand for fast-moving, online retailing is driving a new level of sophistication in industrial facilities that are in close proximity to key infrastructure, with technology, high levels of amenity and advanced operational specifications.”

Building 3 will be available from December 2017.

 

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