- Lane Cove’s last vacant development site has been earmarked for a multi-storey, $75 million industrial unit and self-storage complex
- It is the latest undertaking for privately owned Sydney development and civil infrastructure company Hannas and joins a growing list of multi-storey sites
- Multi-level industrial has gained traction in Asia and Europe as retailers seek to cut last-mile delivery time and costs, but have yet to take off in Australia
- A shortage of large sites coupled with high land values in many Australian cities will likely lead to more multi-storey developments
In the newest project for privately held Sydney development and civil infrastructure business Hannas, Lane Cove’s final unoccupied development site has been slated for a multi-storey, $75 million industrial unit and self-storage facility.
The project joins a small, but growing list of industrial developments planning for multi-storey industrial properties.
The Arc Lane Cove development, at 16 Orion Road, is slated to have 51 premium self-storage spaces and 48 industrial units.
Hannas CEO Danny Hanna said the development would be one of the first multi-storey, architecturally designed estates in this market and would offer premium-grade space.
“We have seen a strong demand from businesses and individuals for a greater focus on lifestyle, convenience and amenity when it comes to their workplaces,” he said.
“Arc Lane Cove will deliver a premium work experience not traditionally found in industrial estates through a seamless integration of warehousing, modern offices and storage.”
The three-level building will have a total floor area of 11,028sqm, with units ranging in size from 21 sqm to 347 sqm, according to the development proposal.
CBRE director Peter Mangraviti said the project set a new benchmark for business space on the North Shore.
Colliers associate director John Carney added that the restricted supply of industrial land in Sydney’s lower North Shore had led to increased demand from commercial and industrial businesses to secure space.
Multi-level industrial has gained traction in Asia and Europe as retailers seek to cut last-mile delivery time and costs.
Due to the availability of relatively inexpensive and developable land, multistorey storage has so far not been widely adopted in Australia.
However, scarcity of inner suburban land and the rise in its value are believed to have led to more positive conditions for multi-storey warehousing.
“A shortage of large sites, coupled with high land values in many Australian markets, has meant providers must begin to reduce building footprints to maximise the capacity of the site, driving the impetus for upward expansion and a strong case for multi-level warehousing,” Knight Frank associate director Katy Dean said.
Ms Dean noted that multi-storey warehousing was popular in Asia. She cited the Goodman Interlink in Hong Kong, a 24-level industrial warehouse that was completed over 20 years ago.
A few other groups are planning for multi-storey warehousing in Sydney and Melbourne, with Logos developing an estate with a multi-level mezzanine, Goodman having two multi-storey warehouses in the planning stages and Charter Hall planning to develop a multi-storey warehouse in South Sydney.
“Although zoning constraints in Australia are unlikely to see developers build to the same heights [as Goodman Interlink] in the short-term, the pressure on land values, a strong e-commerce penetration rate and competition for warehouse space in urban precincts will see an increase in these developments in some capacity,” Ms Dean said.
“Building vertically increases the available floor space for occupiers, potentially enhancing investor returns. With e-commerce growth fuelling demand for last-mile fulfilment, more multi-level warehouse facilities are expected in Australia in the next few years.”