While COVID-19 cases are fairly well under control in Australia for the time being, the impacts of the pandemic are still being felt across a range of sectors.
In the Commercial real estate arena, we’ve highlighted some of the shifts in market segments that have occurred as a result of COVID disruption.
Among those is the commercial office sector, where businesses were forced to adapt their fit-outs to cater for social distancing. Open workspaces have been converted back to private offices and working from home has become more accepted and encouraged.
In the retail sector, landlords have adapted to cater to a different mix of tenants. The provision of outdoor seating/licensed areas was essential to future-proof trade for those tenants faced with internal dining restrictions.
The industrial and showroom sector is the latest beneficiary of post-COVID market shifts.
With national brands so heavily reliant on imports, delays in getting stock to Australia has created a gap in the market. We are seeing many eCommerce businesses looking to establish a retail presence by going from warehouse to showroom.
While eCommerce is the main driver, businesses are also looking to hold more stock due to the unpredictable situation around overseas imports. International restrictions have seen imports delayed and shipping times have blown out, leaving businesses short on stock.
This also presents amazing opportunities for Australian manufacturers who can deliver in a more timely manner despite being priced out by international suppliers in normal times.
The emergence of the industrial/showroom sector will be one to watch, with many opportunities now arising for both investors and vendors.
Please don’t hesitate to reach out for further market insights, upcoming listings and recent results in your sector.