THE PROPERTY DEVELOPMENT REVIEW
Each segment, from small enterprise business hubs (mancaves) to medium scale product (1,000 – 3,000sqm) and to the larger scale product (3,000sqm +), there is a significant amount of demand that cannot find a home. All product within these markets that have been constructed over the past 12-18 months has been either leased or sold, generally all prior to completion. We are encouraging speculative developers to get started on their projects, whether it be big, medium or small to take advantage of the significant under-supply of product in a market. The old saying, “build it and they will come” has never been more true in the Adelaide Industrial market. In any location and in any size, we are confident the product will be well demanded. Do you feel that associated factors like building costs, supply-chain challenges and market sentiment will improve for developers over the next 6-12 months? For instance, have building costs already peaked? The short answer is, yes! While there are some lingering issues with supply chain and personnel within the building industry, we are informed by many of our builder friends that pricing has eased.
What advice do you have for any prospective developers in the current climate?
• Remain positive and be prepared to jump on opportunities as they arise
• Consider refurbishment product – if the bones are right, a more positive outcome may occur with lower cost input.
• Look for land rich assets with holding income.
• Consider rezoning opportunities – Adelaide has a limited supply of industrial land and pro-active councils seeking developer lead rezoning
• Build it and they will come
How have your marketing strategies changed, if at all, over the past 12 months?
Strategies for the marketing have continue d to remain the same over the past 12 months. An increase in presence on D evelopment R eady and C ommercial R eady have allowed us access to a buyer pool in addition to our natural networks. Also assisting in the development space for project work is the In Space Stack which allows purchasers to get a real 3D feel for what end product will look like, and this has been very successful in several projects recently completed. We are also finding progressive building updates through social media and our EDM’s are very effective throughout project timelines.
July / August 2023 – 75
Powered by FlippingBook