Industrial Evolution: Investing in Adelaide’s Light Industrial Properties

While it might seem more complicated than investing in residential property, the light industrial space offers savvy investors exciting possibilities in Adelaide. Across buildings, warehouses and plants dedicated to assembly, fabrication, manufacturing, packaging and repairs, these properties benefit investors with long leases and appealing returns. In fact, Adelaide has revealed itself as one of the ideal Australian cities for light industrial property investment.

What makes Adelaide appealing for industrial property investment?

In recent years, Adelaide’s burgeoning growth has seen the city become a hotspot for industrial property investment. Featuring record low vacancy rates and high rents, investors with a greater appetite for risk during these challenging economic times could secure high-potential assets with prospects for outstanding returns. In addition, industrial land across Adelaide has quickly increased in value.

How Adelaide has become a hotspot for industry

Adelaide’s industrial marketplace continues to surge. With demand for logistics and distribution centres on the rise, investing in these types of properties can lead to steady income and appreciation. But what has caused this upturn in Adelaide’s industrial marketplace?

According to the latest data from Knight Frank, the city has experienced a short supply of industrial vacancies since the pandemic, with supply chain and construction challenges generating a significant supply-demand gap. These factors have driven up rental rates for Adelaide’s established stock.

So far, much of Australia’s economic performance has been driven by Sydney, Perth and Melbourne. However, Adelaide is increasingly seen as a highly regarded business centre, with the city’s defence and mining industries helping to elevate its reputation.

Businesses operating outside of South Australia have also come to view Adelaide as a great option for expanding their supply chain. Resting between Victoria and Western Australia, more and more businesses are looking to Adelaide to achieve national reach.

Where to next?

Adelaide has consistently shown excellent light industrial investment potential. With rental growth increases recorded over the last seven consecutive quarters, searching for an industrial property that makes sense for your needs could be a wise move.

In particular, Adelaide’s outer north is ripe for development thanks to stellar accessibility and cost-effectiveness. Currently, 80% of the city’s industrial development scheduled until 2025 is focused on the inner and outer northern regions.

Speak to the experts

Get in touch with the experts at InStyle Property Management to get up-to-date information about the property market. Our highly experienced team can help manage your commercial investments to achieve your goals.