The continued rise of e-commerce and changing consumer preferences for faster delivery times has resulted in heightened demand for inner city distribution centres and last mile hubs that allow retailers to position inventory much closer to the end-consumer.
Given this, coupled with a diminishing supply of industrial land and significant growth in land values, sophisticated investors in South Sydney have begun to explore the potential for multi-level warehousing.
Multi-level warehouses have existed in the Asia Pacific region for decades, particularly in the more developed markets of Japan, South Korea, Singapore, and Hong Kong, where dense populations and limited land availability has made them a necessity.
More recently, the US and selected European cities have seen several multi-level facilities come to fruition off the back of rising land prices and demand for central inner city warehouse space.
