MARKET INSIGHT SPECIAL Trends In e-Commerce Fulfilment and Industrial Property Use Bawdens is one of Sydney’s largest specialist Asset Managers for clients who own industrial property housing the city’s small-medium enterprises (SME). In the first of a two-part series, Bawdens recently released private client research that identified trends as to how our tenant SME’s are utilising their warehouse space today. The emergence of the importance of fulfilment is because increasingly SME’s are completing their own online fulfilment from their warehouse be that 200m2 or 2,000m2 space. Until recently, fulfilment from online customers of SME’s was outsourced to large specialist fulfilment providers. In 2022 in Australia, 82% or 9.4 million households made an online purchase valued at $63.8 Billion. In 2019, this was $28.6 Billion which highlights the continuing growth in online businesses. Today, we observe small-medium enterprises (SME) are increasingly sophisticated, agile and are taking market share from large multinational organisations. In a recent survey of lessees, we identified some of the following trends driving the desire of our SME tenants to invest and compete in the online universe: • The pandemic has changed the way consumers are prepared to shop. • Consumers want to support a local business online. • Social media commerce favours the SME. (In the US in 2022, the value of this trade source was $289 Billion and is projected to grow to $604 Billion by 2027.) • Improving reliability of connectivity and the advent of online shopping events like Black Friday. • Where appropriate, machine learning technologies are becoming increasingly available to SME’s that allow a (local to consumer) SME to deliver an individualised buying experience. • Our lessees have cited that having a mobile friendly website provides a competitive edge as more and more people are using their mobile devices for online shopping anywhere, anytime. In part two of our series, we consider how the future growth in online commerce will impact the demand for SME industrial property. | PAGE 4 FOR SALE Girraween 2,150m2 approx. Highly Exposed Freestander with Power & Cranes • Freestanding warehouse/office facility • Access via three (3) roller shutter doors • Internal clearances reaching up to 7.9m (approx.) • Triple driveway access and a generous hardstand yard area providing good container access, truck access and manoeuvrability • Ample on-site parking • Site area 3,776m² Robert Ally: 0413 758 658 John Tanna: 0419 124 544
RkJQdWJsaXNoZXIy MTI3ODI1