Warehouses might be a good option for an investment over a residential property, with the rising use of the internet and e-commerce leading to an increased demand.
Internet sales are expected to hit a staggering $20 billion in Australia in 2014, so owning a warehouse and distribution facility could be a savvy investment indeed.
New research from Jones Lang LaSalle and Colliers International has shown the relatively short supply of necessary industrial assets will be even scarcer this year.
Richard Thompson from Jones Lang LaSalle told The Age the developing changes to e-commerce logistics will be enormous.
“This will give rise to a new class of logistics and distribution properties, including mega e-fulfilment centres, parcel hubs and delivery centres, local ‘urban logistics’ depots for rapid order fulfilment, and returns processing centres,” he said.
Managing director of industrial at Colliers International also told The Age that logistics would dominate leasing in 2014.
“During the second half of 2013, the industrial market featured some notable leasing transactions undertaken by logistics specialists,” he said.
“This occurred as retailers and logistics firms continue to come under increasing pressure to adapt the next phase in e-commerce.”
In light of these comments, it may well be worthwhile considering an investment in warehousing over residential property in 2014 going forward.