The pace and scale of change in today’s globalised, digitised economy is leading to an unprecedented transformation of cities. In Australia, accelerating urbanisation, strong population growth, technological advances and changes in consumer behaviour are shaping the workplace and logistic spaces of the future.
In response, Stockland is developing well-positioned urban warehouse and logistics sites that help to power cities.
General Manager Workplace and Logistics Tony D’Addona said “Last mile delivery is now a key focus, generating a growing need for urban logistics space in densely populated areas. Stockland is focused on answering this demand by upgrading its well-located assets to efficient warehouse spaces that provide our tenants with the flexibility and speed to ensure faster delivery through multiple channels.”
With good economic fundamentals expected to continue over the long term – low consumer inflation, falling unemployment rates, growing consumer confidence and a healthy industry landscape – demand for logistics facilities is expected to strengthen across all major city industrial precincts.
In particular, Sydney’s industrial landscape is changing quickly to accommodate its growing population, which is forecast to double over the next 25 years. In Melbourne it’s a similar story with demand for industrial space outstripping supply.
Consumer demand for fast delivery has forced everyone in the retail supply chain – manufacturers, suppliers, distribution and retailers – to carry more inventory in more locations.
Over the past five years, much of Australia’s demand for industrial warehousing has been driven by large retailers such as supermarkets, third-party logistic providers and pure online retailers such as The Iconic and Amazon. Now, traditional retailers also appreciate the need to adapt their supply chains to meet changing consumer behaviour and shopping habits.
“Over the past 12 months, there has been an increase in demand for quality logistics space, supported by strong population growth in Sydney and a strengthening domestic economy. Significant spending on major road and rail infrastructure initiatives will improve connectivity to Sydney’s industrial precincts, giving businesses confidence that they are in the right location to connect with customers and a local workforce,” said Tony.
Meanwhile, sustained business confidence across the eastern seaboard is behind an uplift in demand for premium office spaces in Sydney, Melbourne and Brisbane. In fact, vacancies in Sydney and Melbourne CBDs are at a 10-year record low.
Across the board, there is a growing demand for office environments that foster innovation, talent and connectivity to maintain business competitiveness and with tightening inner city rental markets, businesses are looking further afield for more suitable workplaces that meet the changing needs of their workforce.
This year legal firm Herbert Smith Freehills opened a second Sydney office in Macquarie Park to give its staff more flexibility in how they work. The purpose-built space includes collaborative work spaces and innovation zones.
Stockland recently received development approval for the master plan and first stage of its $500 million M_Park development at Macquarie Park in Sydney. The three-hectare site will include 18,000sqm of office space as well as co-working, retail and conference facilities within a campus-style technology hub. This comes at a time when companies are exploring non-CBD locations to modernise the way people work, connect and collaborate. More details on M_Park here.
The centre will be part of a 55,000 square metre masterplanned precinct to cater to workers of the future, with five new mixed use buildings featuring A-grade office and learning spaces, indoor and outdoor breakout spaces, and co-working areas overlooking a central green space and world-class conference facilities.
Located around a central green park flanked by cafes, restaurants, services and convenience retail on the ground floor of each building, the precinct will also have gym and bike storage, end of trip facilities, as well as childcare and medical services – importantly, all within walking distance to public transport.
“Our goal is to deliver imaginative workplaces of the future in well-connected and accessible locations with solid growth potential to attract start-ups, entrepreneurs and innovators who will fuel collaboration and innovation across the country.
Stockland’s focus on macrotrends is at the centre of its commitment to create modern, reliable and affordable assets that are the key driver of economic growth and tenant satisfaction.
“By leveraging key consumer trends such as community connection, technology and innovation, resource efficiency and convenience, Stockland is reshaping its market leading assets to embrace innovative design, placemaking and sustainability – the adaptive and modern workplaces and logistic spaces of the future.
“Our focus will continue to be on growing a market leading portfolio of logistic centres and workplaces by leveraging our existing well-located assets and land and strong tenant relationships,” said Tony.