Strategic Port Adelaide industrial site offers rare opportunity

ADELAIDE, 6 May 2024 – A Port Adelaide industrial site, within one kilometre of Inner Harbour, presents an exceptionally rare opportunity for developers and owner-occupiers in a market short on supply of both land and quality stock.

Located just 15 kilometres north-west of Adelaide’s CBD, Lot 360 Ocean Steamers Road comprises a large vacant allotment of eight hectares bounded to the east by Ocean Steamers Road and on the west, the ARTC rail corridor.

The tightly held and well-established port-centric location also offers close proximity to the Port River Expressway and Inner Harbour, and is just 11 kilometres from Outer Harbor.

JLL’s Head of Logistics & Industrial in South Australia, Martin James, said the sale represented a limited opportunity to secure industrial land in a highly strategic location.

“In the context of the inner and outer harbours of Port Adelaide, Lot 360 Ocean Steamers Road, is one of the few remaining significant land parcels to become available for purchase in the region,” he said.

“The majority of industrial land within the Port of Adelaide is owned or controlled by a relatively small group including the federal government, the Government of South Australia, Flinders Ports and a number of private owners.

“With growth in port-centric industry, potential to expand or locate within the region has become increasingly challenging.”

Mr James, who is marketing the property with JLL Director, Logistics and Industrial, Kym Hutchins, said the growth in export industries such as agriculture, mining and naval manufacturing in proximity to the naval shipyard at Osborne, as well as demand from the transport and logistics industry had combined to create a land demand/supply imbalance that could not be rectified quickly or easily.

“Land in this market is really hard to get and eight hectares near the port is exceedingly rare,” he said. “In essence, if you are involved with trucks, trains or ships in SA then any property of this ilk is one which needs to be on the must-consider list.”

The property is zoned Strategic Employment within the City of Port Adelaide Enfield and, as such, is suitable for a variety of uses including industrial, logistics, warehousing, storage, research and training land uses.

According to JLL’s recently released ‘Logistics and Industrial Market Overview Q4/2023’, gross take-up increased quarter-on-quarter to Q4 2023 with approximately 51,200 square metres recorded, the largest portion (47.2 per cent) being recorded in the North West precinct, a region which also saw 9.8 per cent year-on-year rental growth.

The report found industrial land values had increased across most precincts as opportunistic owner-occupiers boosted demand for development sites. It found occupier demand for modern warehouse space to fulfil net-zero sustainability targets continued to drive pre-lease activity, while increasing challenges in global and domestic supply chains were generating demand for space as retailers and wholesalers looked to mitigate inventory risk.

Mr James said given the sustained demand for land and quality, well-located buildings from occupiers, developers and investors, it was reasonable to assume that land value uplift and corresponding rental growth would continue in the foreseeable future.

“Across the entire Adelaide region, industrial land has been in significant demand in all size ranges and all locations,” he said. “Until we reach an equilibrium of supply and demand, and that seems at least a little way off at the moment, we are going to continue to see upward pressure on rents and land values.”

The property is being sold on behalf the Urban Renewal Authority (Renewal SA). One of the largest industrial landowners in South Australia, the agency facilitates land supply required for growing industry with the aim of supporting job creation and increased economic activity.

The property is being offered for sale by Expressions of Interest closing Tuesday, 14 May 2024 at 4pm (ACST).