Logistics & Industrial Occupier Market Outlook 2024

Not only are warehouses growing in size (the average size of new warehouses completed in Australia has jumped 63% since pre-pandemic averages), but they are also getting taller as there is now a greater emphasis on warehouse height clearances to facilitate increased cubic capacity. As a result of these trends, developers have responded by understanding the end user’s business operations, with the design becoming much more tailored to suit the supply chain requirements of an occupier as well as its

technology and customer requirements. Given building specifications are higher than they have ever been (resulting in higher construction costs), occupiers that require these facilities to meet business objectives, including efficiencies through automation and ESG initiatives to reduce carbon emissions, will be forced to pay an economic rent based on cost. Some of the top design trends being incorporated into warehouses today are highlighted below.

Modern Warehouse Design Trends The way in which a warehouse is used has changed in recent years, brought about by the growth of e-commerce, a focus on sustainability and more bespoke user requirements.

Figure 24. Modern Warehouse Design Case Study

MATERIALS - Prefabricated modules are preferential to manage costs, especially across multiple buildings within estates.

GREEN PUSH - 100% of roof structure to be designed for solar panel loading (weight).

GREEN PUSH - Sustainability is being mandated by building codes as part of the design process. This includes being solar energy ready from day one for 20% of the roof area.

BUILDING HEIGHTS - Standard internal clearance heights are now being constructed up to 14.6 metres. Planning approvals are looking at pushing as far as 16.8 metres on spec facilities.

FUTURE PROOFING - Assets are being built for today but designed for future use, such as incorporating greater electrical load capacity to accommodate future automation requirements.

AUTOMATION AND TECH - Building designs are becoming more bespoke to the user’s requirements. The flatness of the floor and floor load capacity are key for some automation solutions.

GREEN STAR RATINGS - Warehouses with Green Star ratings are more in demand as ESG requirements come to the forefront. In a balanced market, Green Star rated buildings lease faster than non Green Star rated facilities.

AMBIENT STORAGE AREAS

GREEN PUSH - Passive solar design (awning/shade panels) to reduce heat transfer into office spaces.

CHILLER & FREEZER CHAMBERS

DESIGN TRENDS - Higher level of finish being sought by tenants, particularly to main office areas.

GREEN PUSH - Insulation provided to external walls (including standard metal clad walls) to minimise heat transfer and reduce loading on cooling equipment.

AUTOMATION AND TECH - High speed roller doors with internal sliding insulated doors to minimise temperature fluctuation.

GREEN PUSH -Fibre-reinforced green concrete - up to 40% reduction in embodied carbon.

POWER CONSUMPTION - Separated operational areas based on cooling requirements. i.e. Freezer separated from outside by ante-room.

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OCCUPIER MARKET 2024 OUTLOOK | 34