Property Sector Spotlight : Industrial & Logistics
The industrial & logistics property sector became the hot favourite in 2020, outperforming all other property types.
The rise of e-commerce has driven major brands to expand their footprint and therefore leasing activity. Vacancy rates are at all-time lows and major development work is underway to meet demand. Several AREITS are continuing their growth in this asset class and Transaction volumes were up to $3.5 billion in 2020, from $2.3 billion in 2019 – as recently reported.
So, what makes the sector tick? Here are some attributes and advantages of the sector from our perspective.
Construction and development advantages
- Over time construction costs in the sector have been less susceptible to escalation than other asset types. This stability provides greater confidence to Developers when planning their next project.
- The speed of construction enables Developers to receive a return on their investment earlier than most other forms of development.
- Tried and tested construction techniques in the sector generally lead to less variations than other forms of construction.
- There are also tax depreciation benefits available to developers / investors upon project completion. Continue reading
We take great pleasure in announcing that Rachel Brook has returned to Napier & Blakeley to advise clients in Queensland with particular focus on the Sunshine Coast.
Rachel was originally with N&B in Brisbane from 2014 to 2018 and developed her skills across a wide range of our QS services. Since then, she has travelled through Europe and further developed her quantity surveying and cost consultancy expertise back in the Sunshine Coast with a tier 1 contractor and within property management.
Rachel is based in the Sunshine Coast and her appointment supports the increasing development activity in the region and enhances N&B’s ability to provide our clients with professional services and local knowledge.
For development advice on the Sunshine Coast and Queensland please contact Rachel, Paul or Adam. Continue reading →