Australia Post secures extra space

Australia Post has recently secured 11,000 square meters across two industrial properties in Perth off the back of increased demand for essential goods, with the leasing deals brokered by JLL.

The organisation has signed a three-year lease, with potential for an additional three years, for 4,774 square metres at an office-cum-warehouse at 82 Pilbara Street, Welshpool.

Additionally, Australia Post has secured a second short-team lease for 6,500sqm at a warehouse owned by Australian property fund manager Charter Hall, located at 123-135 Kewdale Road, in Kewdale.

JLL industrial associate Andrew Fife, who brokered the leasing deals, said the properties’ locations suited Australia Post’s requirements for increased freight and the need for a functional facility.

JLL senior director and head of industrial WA, Nick Goodridge, said there had been an uptick in enquiry for quality industrial space to handle and increased movement of freight as a direct result of the COVID-19 pandemic, with the biggest challenge being adapting to the disruption of global supply chains.

“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,” he said.

“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.”

JLL WA research manager Ronak Bhimjiani said the response to COVID-19 was likely to result in an examination of alternative supply chain and logistics solutions such as reshoring of resources, leading to additional local demand for industrial space.

“Secondly, a reversal of lean supply, or just-in-time 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,” he said.

“These two business measures are likely to increase demand for industrial space going forward.”