COVID-19's Impact on the Industrial Property Market
Category Advice
COVID-19's reach has stretched far and wide, with both positive and negative effects for businesses across the globe. Fortunately, COVID-19's impact on the industrial property market has been a positive one, with e-commerce booms leading to a rapidly growing demand for warehousing space.
As more people prefer to reduce their risk of exposure to COVID-19 by shopping online, more companies keep inventory onsite and as numerous supply chain interruptions continue due to trade restrictions, the growth of e-commerce increasingly strengthens. Along with this growth, however, comes increased property prices in urban areas. What all of this translates to in the industrial and logistics property sector, is a shift in the needs of those looking rent or buy.
Property Owners Need to Evolve Alongside E-Commerce Changes
Today's property seekers will not only be looking for increased warehousing space to accommodate the storage of more stock, but will also be searching for warehousing that fulfils a number of different requirements.
With urban property shooting up in price, renters will be looking for property in outlying urban areas that provide better value per square meter. In order for companies to survive in these hard times, many will be looking for ways to decrease overheads to turn better profits. And for the province of KwaZulu-Natal, that means seeking out industrial and logistics property in Upper Highway and Outer West regions.
Property seekers may also desire close proximity to distribution centres, since the expectation of super-fast delivery that comes with e-commerce, will mean that they will search for distribution centres close to where customers are.
Fortunately, for those looking for property in the Upper Highway and Outer West, the construction of the Cato Ridge Intermodal Hub will perfectly accommodate this need.
In addition to proximity to distribution centres, those looking to rent are likely to require more flexible leases, given the uncertainty of the economy due to the COVID-19 pandemic.
Last, the more obvious needs that may arise from the e-commerce boom, could include more modern space-maximising designs, better connectivity, enhanced security and reliable power.
Looking at COVID-19's impact on the industrial property as well as the logistics property market, it is obvious that property owners will need to adapt with these ever-changing times and thus they would be wise to invest in forward-thinking warehousing and logistics parks in outlying urban areas that are willing to cater to the evolving needs that come along with e-commerce and the global pandemic.
Share-List can assist with locating such property in the Outer West and can help buyers or renters find property that matches their unique needs. Give our brokers a call to find out what they currently have on offer. Alternatively, view our current listings here.
Author: Samantha Anderson
