Australian Industrial Horizons

12

LOGISTICS & INDUSTRIAL RESEARCH | INDUSTRIAL HORIZONS

SUPPLY & STATUS

Melbourne Active Industrial Land Supply by Submarket

Across Melbourne, there are 3,168 hectares of vacant industrial zoned land for lots above one hectare, with an average lot size of 10.5 hectares (skewed higher by a handful of larger lots). Most of this land exists within the North and West submarkets and is largely accommodated in precincts such as Truganina, Craigieburn, and Epping. While the majority of larger lots are located within the North and West submarkets, scale remains a challenge for institutional developers in the South East submarket, with 60% of lots in the area being sized below four hectares. From an active supply perspective, 1,077 hectares have the ability to be developed within the next two years, broadly split between the North and West submarkets. Assuming 25% of this area is lost to internal roads, buffers, retarding basins and unusable portions etc, this would reduce Melbourne’s active land supply pipeline to 815 hectares. Although the state government has been proactive in identifying growth corridors where some Precinct Structure Plans (PSPs) have been gazetted, the delivery of key infrastructure is required to facilitate development of the long term land supply pipeline. The limited additional supply within State Significant Precincts highlights the need to make undeveloped zoned land serviceable through streamlined planning controls and the delivery of road and rail links.

NORTH 456 ha

WEST 429 ha

EAST 6 ha

Melbourne Industrial Land Status

SOUTH EAST 186 ha

3,169 ha Total Vacant Industrial Land Stocks

2,091 ha Inactive Industrial Land Stocks

1,077 ha Active Industrial Land Stocks