Australian Industrial Horizons

13

LOGISTICS & INDUSTRIAL RESEARCH | INDUSTRIAL HORIZONS

SUBMARKET STATE OF PLAY

West Land availability has reduced sharply in recent years given the surge in occupier demand. Currently, there are 428 hectares of active vacant land stocks in the West submarket, underpinned by Truganina, where major institutional groups such as Goodman, ESR, Dexus and Charter Hall have landholdings. Active land availability in infill markets is limited, accounting for 21% of total active land supply in the submarket, skewed by Laverton North and Altona. North The Melbourne Airport Business Park, Somerton Business Park, Essendon Fields and estates within Craigieburn underpin Melbourne’s North active supply pipeline, where approximately 450 hectares exist. The longer-term pipeline is supported by the Merrifield Business Park, the majority of the O'Herns Logistics Park and further estates within Craigieburn. South East & East Melbourne’s South East and East submarkets are the city’s most land-constrained markets, with less than 200 hectares of active land supply in the market. Active land stocks largely stem from the Dandenong South and Pakenham precincts and includes Salta’s Nexus Estate and Goodman’s Chifley Business Park at Moorabbin Airport, while land stocks at ESR’s Greenlink estate have fallen substantially given recent deal activity. Longer term, demand will be directed towards more periphery markets including Officer and Pakenham precincts. The South East will continue to be actively targeted by developers chasing obsolete secondary facilities that can be redeveloped, similar to ISPT’s plans at the IVECO site at Dandenong South.

Melbourne Industrial Land Supply

Zoned Industrial Land

Vacant Industrial Land Supply