MHD STRAP LINE
THE FUTURE OF THE INDUSTRIAL AND LOGISTICS SECTOR Off the back of a strong year in 2021, Colliers Industrial property experts share their thoughts with MHD on the future of industrial property in 2022 and beyond.
Fab Dalfonso, National Director of Sydney South West Industrial, Catherine Allotta, Associate Director of Colliers Valuation and Advisory Services, and David Hall, National Director of Colliers Sydney West Industrial.
T
he fundamentals within the industrial and logistics sector in 2022 will remain supportive of strong market conditions. E-commerce is forecasted to continue to provide the backbone of tenant demand, while we are currently undergoing an era of transformation and renewal as a result of the significant investment in infrastructure. which will support new development. It’s Colliers’ view that we see the future of the Industrial and Logistics sector looking bright. Our Colliers Industrial experts have explored the underlying factors within 14 | MHD FEBRUARY 2022
each area of our service expertise that we know to be shaping the Industrial and logistics landscape. Our experts discuss factors impacting demand, growth of the Western Sydney market, the rise of the truck driver, NABERS (National Australian Built Environment Rating System) in industrial and making your warehouse space count.
FACTORS IMPACTING DEMAND Catherine Allotta, Associate Director of Colliers Valuation and Advisory Services, believes from a valuation perspective,
prime industrial grade assets with strong tenant covenants and lengthy WALEs that are situated in good locations are in high demand by investors in today’s market. Similarly, for the occupier market, demand is being led from the e-commerce, transport and logistics, manufacturing, pharmaceutical and cold store sectors. “Since Q1 2021, we have witnessed yield compression of up to 100 basis points (bps),” Catherine says. “For the East Coast capital cities, prime yields currently average 3.91 per cent while selected submarkets sit closer
