A new flexible warehouse facility is set to become available in Port Adelaide’s premier distribution centre. MHD talks with Quintessential Equity and Leedwell about how intelligent warehouse development can help solve the lack of available space on the market.
Leedwell has been a major player in the South Australian Industrial and Logistics market for over ten years. Under the guidance of Partner Steve Smith, the same four-agent industrial team has been closing deals together for eight years – a testament to their synergy as a team, according to Henry Treloar, Leedwell Director – Industrial.
“We cover all sectors of the market in terms of industrial size range,” Henry says. “We’re an established team. Instead of being competitive with each other we are out on the ground, focusing on deals. It’s something that we pride ourselves on, and we have a strong market share in Adelaide.”
Recently, supply has struggled to keep up with demand for warehouse space in the South Australian market, especially within 10 kilometres of the Adelaide CBD. A myriad of recent studies indicates the e-commerce shift continues to gather steam, suggesting the demand for automated fit-outs won’t dry up any time soon – if ever.
Henry notes property developers like Quintessential Equity are beginning to read this trend in the market, making their own room for warehouse operations.
“It’s something we haven’t seen in our market for close to seven years now,” he says. “The groups who are speculating buildings is exciting because we do have a shortage of quality facilities in our market.”
PORT ADELAIDE DISTRIBUTION CENTRE
Since acquiring the logistics estate in 2019, Quintessential Equity has retained and brought on a number of major logistics players. Julian McVilly, General Manager – Asset Management of Quintessential Equity, says through working with Leedwell and CBRE as leasing agents, the available properties on site are now 100 per cent occupied.
“We initially had an expectation we were going to have large vacancy,” he says. “But Leedwell’s relationships and experience have been fundamental with shoring up any vacancy.”
The estate includes a series of office warehouse buildings, providing a variety of applications to suit the needs of medium to large tenancy requirements. With areas ranging from 2516 sqm to 20,770 sqm, some of the estate’s features include:
Multiple at-grade loading access points
Generous internal road networks and multiple road crossovers
Bedford St gazetted for B-double and road-train (36.5m) truck movement
Comprehensive traffic management for safe movement and loading/unloading
Fully fenced with CCTV security cameras to common areas in the estate
Security patrols are also undertaken overnight
Significant truck parking and loading areas
Quintessential Equity signed its biggest ever industrial deal in January last year, securing a deal with VISY Logistics for 44,000 sqm inside the centre. Steve Smith, Partner at Leedwell, says the agency knows PADC like its own backyard after 13 years of leasing deals.
“Having established a relationship with Visy and some of its consultants over a number of years and transactions, we were made aware of a warehousing requirement one of Visy’s business lines needed,” he says. “Various discussions and options were presented, and as negotiations progressed, other Visy businesses were brought into the equation. Leedwell coordinated the negotiations and added value through its understanding of the forthcoming vacancies at the estate and relationships with the key stakeholders.”
The deal was one of the biggest lease transactions in the Adelaide market for an existing building.
“Significantly, it soaked up a large amount of space that would potentially come available and therefore didn’t oversupply the market,” Steve adds. “If that had happened, we may have been in a position where rentals declined until the space was taken up again.”
Quintessential Equity is looking at enhancing its existing industrial asset holdings to meet the current market demand and endurance. The expansion of a new warehouse – “Warehouse M” – and accompanying amenities and infrastructure networks will allow the Group to increase the gross lettable area of the facility.
Warehouse M is a new facility offering highly functional and flexible spaces, with construction set to finish by the end of this year. The site offers flexible warehouse sizes from 1540 sqm to 4900 sqm, with the property able to be divided into three tenancies.
One constant over the COVID-19 pandemic has been that location is king for a logistics and trade hub. Warehouse M gives easy access to container facilities, general freight, bulk handling and rail intermodal infrastructure.
“The location is a big part of why it is Adelaide’s primary logistics centre,” Julian McVilly says. “The estate offers direct access to the Port River Expressway and connects you to South Australia’s major arterial road network, while only being seven kilometres from the Port of Adelaide.”
The space offers drive around access for B-Doubles, ESFR sprinklers, eight metre minimum clearance, 10 auto roller shutters, 890 sqm of canopy, 2090 sqm of hardstand, secure and ample parking, as well as industry zoning – permitting a wide variety of uses.
“Having more of a retail potential is a difference maker for the estate,” Julian adds. “Without amenities and shops close by, having a new café and retail ability will add to the centre and appeal to different users within the logistics and e-commerce space.”
Henry Treloar says the Adelaide market can expect more industrial developments going forward.
“Some of the biggest institutions have come back to our Adelaide market,” he says. “Smart organisations like Quintessential Equity have experienced what’s happening interstate and are adapting accordingly to the Adelaide market.”
For more information on Leedwell, click here.
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