Adelaide’s industrial market buoyed by infrastructure spending

Adelaide’s industrial market buoyed by infrastructure spending
06/10/2018 , by , in INTERNATIONAL

The federal government’s decision in June to build nine future frigates in South Australia, the abolition of stamp duty on non-residential property transfers and a number of infrastructure projects appear to be buoying Adelaide’s industrial sector.

The market sentiment has greatly improved and the impact is being felt across all industrial markets, said Paul Tierney, Colliers Internationals’ director of industrial for SA.

“Leasing activity has been solid in the first half of 2018 with an increased number of design-and-construct leases secured and under construction, or soon to be constructed,” he said.

“The defence sector is a major contributor with a number of projects and new construction anticipated around the metro market including Osborne, Mawson Lakes and Edinburgh.”

There was one major transaction in the second quarter of this year – Australian Naval Infrastructure bought a vacant 11,220-square-metre facility at Osborne in Adelaide’s north from Ferrocut Australia. ANI paid $14.4 million, according to real estate agency JLL.

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