Development and pre-lease activity has shown signs of improvement recently. Over the past six months up to 60.000m² of industrial space has been pre-leased, with occupiers such as Cameron Transport, Electrolux, Spotless Group, Rand Transport, Blackwoods and AHI Carrier Pty Ltd all pre-committing to new space.
The $407.5 million duplication of the Southern Expressway is a major upgrade for Adelaide’s north-south transport corridor. Anticipated for completion by mid 2014, it will provide an 18.5 kilometre multi-lane, two way expressway between Bedford Park in the Inner South and Old Noarlunga in the Outer South.
Like most national markets, there is strong investment demand for modern assets, subject to long leases to quality tenants. This is driving prime yields lower and is somewhat exacerbated by a shortage of quality assets being brought to the market. However, demand for secondary grade property remains soft.
The largest industrial sale in 2013 to date was an office warehouse of 25,562m² at 76-80 Howards Road, Beverley. Purchased by Charter Hall for $27.14 million in January, the sale was subject to a 12 year lease to Electrolux, reflecting a core market yield of 8.26%.
Source : Knight Frank