Adelaide’s Market Update June 2019

June 27, 2019

Industrial precincts to the north of Adelaide are experiencing a boom in activity in the lead up to the opening of the Northern Connector, and specialist industrial agency Leedwell Property is at the forefront of transactions with 125,000m² of land sales under its belt so far this financial year. Another 175,000m² of vacant land has transacted in the region over the same period, amounting to 300,000m² in total. This is compared to only 120,000m² of vacant land in this area sold within the entire market during the 2017/18 financial year.

Leedwell Property agent Steve Smith says, “Travel times between the traditional inner northern region and the outer north are expected to be reduced to only seven to eight minutes once the Northern Connector is fully functioning, and this has been the major catalyst for the high level of activity.

“Value for money is a significant driver. Businesses will be eight minutes up the road and will have paid a third of the price for land in Direk and Edinburgh compared with Wingfield and other inner-northern locations. This significant saving in land cost is a win for both owner-occupiers and tenants who can enjoy reduced overheads in a brand new, purpose-built facility a short distance from traditional suburbs,” he says.

Some of the recent groups to commit to the region include Boeing, Drakes Supermarkets, Hobson Engineering, Rhodes Wool and a number of developers seeking to land bank and develop in the future.

A major beneficiary of the activity has been Vicinity Industrial Base given its strategic location. In describing this site, Steve Smith says, “Factors including the proximity to the Northern Connector interchange with Waterloo Corner Road, B-Triple licensed roadways, easy access, affordable land pricing, quality buildings and corporate occupiers are all attractive attributes for the estate. Edinburgh and Edinburgh North are also in high demand through affordable land availability,” he says.

In addition to land sales in the area, Leedwell has also sold 11,000m² and leased a further 20,000m² of improved sites. “As well as the vacant land, there are also quality buildings being transacted as part of this purple patch. We are currently marketing two top quality office warehouses at 28,000m² and 7,000m² respectively, that are among the best facilities in the market at very competitive rental rates. “It really feels like a land of plenty with excellent facilities available now and a further 200,000m² of vacant land coming soon through Walkers mobilising Stage Three subdivision at Vicinity Industrial Estate,” Steve Smith says.

Steve Smith

Leedwell Property