23 Following a record-breaking 2020 for new completions, 2021 was more muted at an estimated 115,000 square metres across Adelaide. New supply is expected to remain around similar levels in 2022, with around 110,000 square metres likely to be completed, with another 68,000 square metres proposed. Close to 50,000 square metres was complete in the first half of the year. The majority of projects finished so far this year were relatively small in scale, such as a 7,700 square metres design and construction warehouse for Joyce Foam Products in Edinburgh North and a new 15,000 square metres fertiliser dispatch facility for Wengfu Australia in Port Adelaide. The Outer North remains a focus for supply, responsible for around half of the completions last year, and is expected to continue this share of new supply in 2022. However, as with elsewhere, the speed at which new construction can be delivered is likely to be slowed by material and labour shortages. Supply The value of approvals for factory and warehouse construction has risen well above the lows of 2020, with $410 million approved over the 2022 financial year. Consequently, we expect this to flow into completions in the near term. Warehouses dominate total approvals, contributing roughly 75 per cent, with the Adelaide West region accounting for the vast majority. Major projects due for completion over the next 12 months, include the Osborne North future submarine construction yard, alongside the 10,000 square metres La Casa Del Formaggio cheese production facility in Edinburgh Parks and the 9,000 square metres Mainfreight freight facility in Regency Park. Traditionally, most of the development pipeline floorspace represents pre-committed facilities or those purpose-built for an owner-occupier, with little speculative space. That appears likely to continue. Over the medium term, there are numerous major industrial sites available to cater to future demand, but opportunities are limited in the most in-demand precincts. Construction is underway at CEP Energy’s large-scale storage battery at the former Holden site in Elizabeth, now Lionsgate Business Park. In addition, there are another 220 hectares of the 400-hectare former multi-function polis site (although some may be set aside for residential construction). Adelaide also has lost industrial land to other uses, as noted earlier, with several sites rezoned to residential or mixed-use development following the closure of industrial plants. More of this can be expected, especially in inner areas with higher land values as occupiers upgrade to sites serviced by the new transport infrastructure. Supply outlook Industrial Market Monitor | 2nd Half 2022
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