Australia Post leases 11,000 sqm of space in Perth
To ease pressure and expand their operations, Australia Post has leased two large distribution centres in Kewdale and Welshpool
PERTH 20 May 2020 – In Perth, Australia Post has been proactive in their ability to handle increased movement of freight as a result of COVID-19 and the current economic environment, leasing up to 11,000 sqm of industrial warehousing space in Kewdale and Welshpool due to the need to get essential products to consumers.
JLL’s Andrew Fife, Industrial Associate at JLL Perth, brokered the leasing deals. He said, “The location of Kewdale and Welshpool in Western Australia are warehousing hubs and perfectly suited to Australia Post, with requirements for increased freight and a quality, functional facility.”
Mr Fife said that operators will be focused on developing ‘domestic supply chain independence’ which is likely to lead to a change in the domestic warehousing and logistics landscape.
This shift in how the needs of businesses and consumers have changed during the pandemic has resulted in additional demand for industrial space.
The supply and demand of goods has become a critical issue during the COVID-19 pandemic. From surgical masks to empty grocery-store shelves, supply shortages and a surge in demand for goods, especially non-discretionary products, has highlighted the need for a shift in thinking amongst those businesses occupying industrial space.
Nick Goodridge, Senior Director and Head of Industrial WA at JLL said, “There has been an uptick in enquiry for quality industrial space to handle an increased movement of freight as a direct result of the pandemic.”
The biggest challenge to the industrial and logistics sector has been the disruption in global supply chains. However, the industrial sector is adapting to the change in demand from businesses and consumers and how to get essential goods to consumers.
Mr Goodridge said, “Options that have been explored include adjusted delivery curfews, more flexible leases and decentralising distribution centres. These are some of the discussions we have been having with supply chain teams within organisations.
“Distribution centres are the hub of this activity and transport and logistics operators have been actively seeking advice on what space is available in the short to medium term, with flexibility to scale up if required,” Mr Goodridge said.
JLL’s WA Research Manager, Ronak Bhimjiani said, “The business level response to COVID-19 is likely to result in an examination of alternative supply chain and logistics solutions such as re-shoring of resources, leading to additional local demand for industrial space.
“Secondly, a reversal of lean supply, or ‘just in time’ (JIT) inventory is expected, especially for high-turnover goods as firms decide to increase their inventory levels in the long term given the uncertainty and disruption faced during the pandemic. These two business measures are likely to increase demand for industrial space going forward.
“Consumer habits rapidly changed during the pandemic, with online deliveries for products and food supplies becoming the new norm during the isolation period. This trend is set to continue as many consumers adapt to the ease and convenience of shopping online and businesses further improve efficiencies from a logistics standpoint,” said Mr Bhimjiani.
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