Industrial property developers are becoming creative to adapt to shifting property markets around the country, according to a nation-wide study compiled by independent property advisors Herron Todd White.
According to the Herron Todd White report, developments must serve the needs of both tenants and investors to ensure results don't become projects which cost, not profit.

"Green projects, mixed use developments and even approaches to advertising are just some of the ways developers are keeping up with, and sometimes exceeding, the market in which they operate", said Brendon Ptolomey, Herron Todd White Director, Perth.

According to Mr Ptolomey, the focus in the Perth market was on availability of industrial land with related issues emanating; such as rental growth, demand from both owner occupier/investor for modern accommodation, locational factors and cost of construction.

"Demand for land particularly in the near city suburbs is strong, especially in recognised localities of Osborne Park and Belmont, both of which due to their proximity to the CBD, are experiencing developments appealing to the services sector, where there is a higher incidence of office accommodation under construction or developments with a higher component of office/showroom (i.e. greater than 20%)," he said.

Mr Ptolomey said that this trend had been influenced by the near 0% vacancy rate for office accommodation in the Perth CBD and periphery.

"I note in the lower range suburbs a tendency to build multiple factory unit developments, which is perceived at minimising risk by developers as the market is more accented towards the owner occupier. There is, however, good demand for stand alone office/warehouse developments where tenants and owner occupiers alike are seeking modern improvements, good utility of warehouse areas and the identity that a stand alone office/warehouse provides," he said.

Mr Ptolomey also recognised a trend to minimise the number of units on a site to maximise street frontage. He said that some sites between 1,500m² to 2,000m² are designed for 2 to 4 units each with street frontage maximising both access and exposure to each unit.

Herron Todd White is Australia's largest independent property advisory and valuation firm with 44 offices across the nation and more than 500 staff.