Increasing demand for car storage in Melbourne

There’s a trend in Melbourne's industrial market that has gained significant momentum over the past year - car storage. What initially began as a solution to a shortage of hail netted sites has now evolved into growing demand for warehouses suitable for storing finished goods cars. This trend has become a focal point for industry professionals and presents new opportunities in the market.

Exploring the Background

Initially, the quest for car storage led to the exploration of hail netted sites. However, due to limited availability, the industry shifted focus towards repurposing warehouses. The requirements for car storage are straightforward, with clients seeking roofed spaces with easy access and efficient truck connectivity. Once vehicles are stored, the warehouses are effectively sealed, allowing for minimal movement until a controlled flow of cars is dispatched on a weekly basis.

Continued Growth and Demand

The demand for car storage within warehouses shows no signs of abating. New carriers continue to approach JLL with storage requirements for cars, and this trend is forecasted to continue until at least the end of 2025. This sustained demand is driven by a combination of increased car purchases during the COVID-19 pandemic and a subsequent upturn in manufacturing activity. It's important to note that this trend encompasses both electric and conventional vehicles.

A Victorian Phenomenon

While there are isolated demands in Sydney, Brisbane, and Adelaide, Melbourne has emerged as the primary hub for car storage. The key driver behind this choice is Melbourne's competitive lease costs and rentals of warehouse space in comparison to other states. The emphasis on cost-effectiveness has led businesses to favor Melbourne as the ideal location for car storage.

JLL's Role and Impact

JLL has played a pivotal role in this burgeoning trend. To date, our Northwestern team has successfully leased over 125,000 square meters of warehousing space to clients, significantly contributing to the growth of this industry. Through JLL's expertise and market knowledge, we have been able to identify and capitalise on the evolving demands of clients, establishing ourselves as a key player in the car storage sector.

Implications for JLL and the Market

The rise of car storage as an emerging trend in Melbourne's industrial market has solidified JLL's position in the market, particularly in the western region. Our active sales and leasing team has successfully navigated the changing market landscape, providing innovative solutions that address the growing demand for dedicated car storage spaces. As this trend continues to shape the industrial market, JLL remains committed to delivering exceptional services and staying at the forefront of industry developments.

The emergence of car storage as a growing trend in Melbourne's industrial market reflects the dynamic nature of the industry and the evolving needs of businesses. Melbourne's competitive lease costs and favorable market conditions have positioned it as the preferred destination for car storage. JLL's expertise and involvement in this sector have been instrumental in facilitating lease agreements and creating opportunities for landlords and developers. As this trend gains further momentum, JLL continues to lead with innovative solutions and a commitment to providing exceptional service to its clients.