Mark and Roy Makari are expanding their presence in Sydney’s South West with a second major proposal for Leppington, this time envisioning a 900-dwelling mixed-use development just 850 metres from their previously lodged tower trio on Fifth Avenue.

The latest application seeks approval for a multi-building project at <a href="https://www.apartments.com.au/new-apartments/230-rickard-road-leppington-nsw-2179">230 Rickard Road, Leppington</a>. The proposal seeks to establish a new focal point for the precinct through a high-density, transit-oriented development supported by diverse land uses.

According to the Scoping Report prepared for the Department of Planning, the scheme includes around 900 apartments across multiple towers, including 135 dwellings designated for affordable housing. A mix of market and subsidised apartments will be supported by ground-level activation through retail and office space, a childcare centre, and a hotel, forming a comprehensive urban precinct.

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The Design Report by <a href="https://www.apartments.com.au/architects/studiosc-0">Studio SC</a> notes that the project “intends to deliver a high-quality, high-density built form that supports the vision for the Leppington Town Centre, integrating mixed-use outcomes and public domain upgrades.” The development is expected to be delivered in stages, although a precise timeline is yet to be confirmed.

The project will be assessed through a future State Significant Development Application, with the Scoping Report indicating the team will seek design excellence via a competitive process or through an expert design review panel. Early massing diagrams suggest a series of mid- to high-rise buildings framing a central landscaped spine, with emphasis on pedestrian permeability and public space.

The planning documentation flags a strong sustainability agenda, stating that the development will “respond to the urban heat island effect, incorporate water sensitive urban design, and prioritise active transport”.

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The proposal follows in the footsteps of the Makaris’ nearby Fifth Avenue site, where they’ve submitted plans for three towers comprising nearly 500 apartments, with 10 per cent dedicated to affordable housing. That project features commercial podiums, a childcare centre, and a new public park that would occupy more than a third of the site.

Both developments are situated within walking distance of Leppington Train Station and fall under strategic precinct plans promoting higher density housing. The town centre is undergoing substantial transformation, driven by state government planning reforms aimed at fast-tracking housing delivery.

Together, the two projects represent a combined ambition of nearly 1,400 new homes across just under two kilometres of central Leppington.

Staff Writer

First look: 900-home mixed-use precinct planned for Leppington

Leading Australian integrated property development group, <a href="https://www.apartments.com.au/developers/aqualand-australia">Aqualand</a>, has released the signature penthouses crowning its landmark AURA by Aqualand precinct at 168 Walker Street in North Sydney, unveiling Il Magnate and La Divina as the largest and most luxurious penthouses in the suburb.

With prices anticipated to commence from $15 million, and each accompanied by a new Porsche Carrera 911 valued at over $500K, the residences mark the culmination of <a href="https://www.apartments.com.au/buildings/aura-by-aqualand-north-sydney-168-walker-street-north-sydney-nsw-2060">AURA by Aqualand</a>’s decade-long journey and the beginning of its final sales chapter. 
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Their release follows more than $850 million in record-breaking residential sales and the building’s completion and occupation.

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The Richards Stanisich-designed 284 sqm Il Magnate and 224 sqm La Divina penthouses, collectively known as The Icons of AURA, are conceived as grand luxury homes rather than apartments, with expansive proportions, elevated materiality and curated identities that reflect their status as one-off residences.&nbsp;

Il Magnate features a grande master suite, complete with substantial walk-in dressing area and ensuite, three other bedrooms, second ensuite and another bathroom, powder room, open plan kitchen, scullery, substantial dining area and generous living room divided by a feature fireplace, and a multifunction wintergarden, which is ideal for a study and adjoining office breakout space. &nbsp;

Meanwhile, the La Divina residence offers the same amenities, sans the powder room, on a slightly smaller alternate floor plan configuration.

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Each occupies half of AURA by Aqualand’s topmost 28th level, comes with four secure car spaces and pairs sweeping Sydney Harbour panoramas with large-scale living spaces, refined detailing and a level of craftsmanship and amenity rarely offered in the North Shore market.&nbsp;

Penthouse residents will also receive Etymon’s ‘Black Key’ private concierge and lifestyle management service, an invitation only offering providing the ultimate in bespoke personalisation, including a range of everyday discrete services, from dinner party management, grocery deliveries, pet feeding or plants watered, dinners, snacks and coffee deliveries, event ticket sourcing, right up to organising travel visas and international airfares. Rarely seen in Australian properties, the service provides residents the benefits of living in a world-class luxury hotel-style home, akin to The Ritz, or the Waldorf Astoria.

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<a href="https://www.apartments.com.au/interior-designers/richards-stanisich">Richards Stanisich</a>’s Director, Kirsten Stanisich, said the studio set out to craft residences that feel profoundly considered, contemporary and deeply connected to their setting.

“From the outset, we approached these penthouses with the sensibility of a grand Parisian residence - generous in scale, elegant in proportion and designed to feel more like a handcrafted home than an apartment," Stanisich said.

“Their elevated position and sweeping harbour outlook informed every decision, creating a rare connection between urban sophistication and natural calm. We shaped each space with expressive materiality, sculptural forms and bespoke detailing that invite touch and interaction.&nbsp;

“The result is a pair of residences defined by volume, light and an inherent softness - refined, flexible and deeply personal. These penthouses are unlike anything else in North Sydney, offering a sanctuary of true luxury framed by some of the city’s most remarkable views.”

For Aqualand’s Head of Sales &amp; Marketing, Alex Adams, the collaboration with Porsche underscores the shared ethos behind the residences.

“Aqualand’s collaboration with Porsche underpins both brand’s sharing an obsession with craftsmanship, design excellence, and enduring value," Adams said.

“Our penthouses are created for those who appreciate the finer details and expect the extraordinary at every touchpoint. Including a Porsche simply extends that experience beyond the residence - it’s a continuation of the lifestyle our buyers already live.”&nbsp;

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Aqualand’s Managing Director, Jin Lin, said the penthouses represent both the pinnacle of AURA by Aqualand and an important design benchmark for the company’s future pipeline.&nbsp;

“These stunning penthouses reflect the purest expression of Aqualand’s design ambition," Lin said.

“The unparalleled design intent makes them not only the glistening crown of AURA by Aqualand, but the crown of North Sydney itself. They’re essentially a thank you gift to a burgeoning community that deserves this level of quality and architectural consideration.&nbsp;

“We’re leveraging the unrivalled standard set here as the foundation for what comes next, including our upcoming Anderson Street, Chatswood; 15 Blue Street, North Sydney and Central Barangaroo projects. Purchasers of these penthouses will essentially be living inside the blueprint of Aqualand’s future.

“These landmark residences demonstrate how far North Sydney has evolved and the strength of demand for highly curated, bespoke luxury homes. They’re more than penthouses, they’re legacy residences.&nbsp;

“With AURA by Aqualand now a thriving new precinct with residents well and truly settled, and our in-house world-class lifestyle amenity activated, Il Magnate and La Divina represent a once-in-a-lifetime opportunity to secure an extraordinary piece of North Sydney’s future.”

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Joel Robinson

Aqualand launches North Sydney penthouses with free Porsche Carrera 911

<a href="https://www.apartments.com.au/developments/bokarina-qld-4575">Bokarina</a> Beach has quietly evolved into one of the Sunshine Coast’s most complete coastal lifestyle precincts, defined not just by proximity to the ocean, but by how residential living, local retail and everyday amenity are stitched together.&nbsp;

Gardner Vaughan Group’s <a href="https://www.apartments.com.au/new-apartments/bask-bokarina-38-bokarina-boulevard-bokarina-qld-4575">Bask Bokarina</a> now represents the final residential chapter in that transformation.

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Over recent years, the Bokarina Beach precinct has taken shape as a walkable, community-oriented neighbourhood, anchored by beachfront access, Lake Kawana to the west, and a growing mix of cafés, specialty retail and public open space.&nbsp;

With Zinc Bokarina already delivered next door by <a href="https://www.apartments.com.au/developers/gardner-vaughan-group">Gardner Vaughan Group</a> (GVG), Bask is the last opportunity to buy a brand new apartment within the precinct, effectively rounding out a fully formed coastal village.

GVG has positioned Bask to strengthen that lifestyle framework. Nine ground-floor retail spaces are planned beneath the residences, extending Bokarina Boulevard’s existing activity and reinforcing the area’s everyday convenience, from casual dining and coffee to local services, within a short walk of the beach.

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The residential component comprises 135 apartments across two buildings, Mydas and Caretta, with a clear shift toward larger three- and four-bedroom layouts and penthouses. That mix reflects a maturing buyer profile in Bokarina, where demand is increasingly led by owner-occupiers and active downsizers seeking space, permanence, and connection to place rather than short-term coastal accommodation.

Design and amenity have followed the same logic. Residents will have access to a heated plunge pool, gym, private dining room with a full kitchen, landscaped communal gardens with barbecues and a firepit, and a shared herb and vegetable garden, facilities intended to support daily use rather than resort-style turnover. Pet-friendly features, including a dog wash bay, acknowledge both buyer expectations and the area’s dog-friendly beach, located around 250 metres from the site.

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“Bokarina has become one of the Sunshine Coast’s most desirable beachside communities, and Bask represents the very last chance to buy new in this location,” GVG Director Sam Gardner said.&nbsp;

“Our focus has been to create spacious, functional apartments that meet the needs of locals who want to downsize without compromise, as well as those seeking a full-time coastal retreat.”

Positioned between the Pacific Ocean and Lake Kawana, Bask apartments have been oriented to capture outlooks toward the water or the Glass House Mountains, reinforcing the project’s connection to its natural surroundings. With parks, beachfront paths, hospitals, retail and public transport already in place, Bask arrives at a point where the broader precinct is no longer emerging, but established.

Construction is expected to complete in Q3 this year, with apartments ready to move into this Spring.

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Bask to complete Bokarina’s Sunshine Coast lifestyle precinct as final apartments are released

Property development giant <a href="https://www.apartments.com.au/developers/avid-property-group">AVID Property Group</a> is approaching completion, and sell-out, of its Surry Hills apartment development, <a href="https://www.apartments.com.au/new-apartments/the-rathbone-23-47-flinders-street-surry-hills-nsw-2010">The Rathbone</a>.

The Flinders St project has sold well over half of its 32 apartments, which will sit above two retail spaces.

Now hitting the market are the final 14 one-, two-, and three-bedroom apartments, which start from $1.15 million. AVID is targeting a mid-2026 completion.

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AVID General Manager New South Wales Danny Boubli said as more apartments are introduced to increase housing options in inner-city areas, homebuyers are searching for a &nbsp;sense of belonging in addition to location, convenience and value.&nbsp;

“There are very few opportunities for new developments in Surry Hills, and since acquiring the site, we’ve even seen one early purchaser merge two apartments plans together, reflecting the demand for a spacious, premium offering in a prime location,” Boubli said.&nbsp;

“Demand has been strong since we launched to market – we don’t see these final apartments staying on the market for long.”&nbsp;

Architectural firm Studio SC has designed the building which pays homage to the former 1900s Rathbone Terraces that once sat on the 990 sqm island site.

Boubil said the team has made every effort to create "truly liveable apartments", through&nbsp;functional floor plans, security, storage, and the inclusion of quality fittings.

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Sustainable design has also been implemented throughout the development, with natural light flooding each apartment, ventilation throughout, extensive landscaping and where possible, materials with a high level of recycled content and low volatile organic compound paints have been used. &nbsp;

Apartments range in size from 57 sqm for the one-bedrooms to the large-scale 165 sqm three-beds which are priced at $2,575,000.

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AVID launches final apartments at The Rathbone, Surry Hills

A wave of investment, renewal and precinct growth continues to shape the northern edge of Macquarie Park, where daily life is supported by a rare combination of university activity, corporate employment, major retail, and expansive green corridors. It’s this convergence of amenity and connectivity underpins the setting for <a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>’s <a href="https://www.apartments.com.au/new-apartments/la-vera-94-talavera-road-macquarie-park-nsw-2113">La Vera</a>, which has now topped out and is tracking toward completion in mid-2026.

Within this pocket of the precinct, residents move easily between the area’s key anchors. Macquarie Centre, home to more than 360 retailers, fresh food offerings, dining and entertainment, sits at the heart of local convenience and functions as a major transport interchange. The Metro, T1 rail line and extensive bus network place much of Sydney within quick reach, while surrounding arterial links support direct access to neighbouring districts.

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Green space remains a defining feature of the immediate environment. Lane Cove National Park stretches along the northern boundary of the precinct, offering bushland trails, cycling routes and quiet riverfront pockets. Shrimptons Creek and the campus grounds of Macquarie University extend these recreational networks, softening the urban setting and creating a daily connection to nature that informs the project’s architectural response.

<a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> have shaped La Vera around these contrasts. The building’s northern elevation adopts an organic, curvilinear form that mirrors the natural topography of the national park. Three sculpted forms soften the tower’s profile and encourage a stronger transition between indoor living areas, balconies and the broader landscape.

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Cox Director Felipe Miranda says the building’s outlook played a central role in the design process.

“The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park… The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies,” Felipe Miranda of Cox Architecture said.

Toward the city-facing side, the design shifts to a more urban expression. A gridded facade and extensive glazing capture CBD views, creating a dual strategy that blends ecological outlooks with metropolitan orientation.

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La Vera delivers 169 residences across one- to four-bedroom layouts, reflecting the needs of young families, downsizers, first-home buyers and investors seeking long-term certainty within a high-amenity location. From the project, residents can walk to Macquarie University, Macquarie Hospital and nearby corporate offices, reach national park trails within minutes, and enjoy retail and dining without relying on a car.

The project is delivered by Urban Property Group, a 4.5-star iCIRT-rated developer-builder with more than three decades of experience. The company has become a leader in adopting 10-Year Latent Defects Insurance (LDI), first introduced on its Parq Bexley development and now embedded into its pipeline.

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La Vera is the first development in Macquarie Park approved to offer this 10-year LDI policy, adding another layer of protection for purchasers and reinforcing the transparency of the construction process.

Urban Property Group CEO Patrick Elias says this assurance has become increasingly important for buyers navigating the off-the-plan market.

“Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been… Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share,” Urban Property Group CEO Patrick Elias said.

Urban Property Group's in-house construction team is forecasting a mid-2026 completion, with <a href="https://www.apartments.com.au/project-marketer/home789">HOME789</a> appointed as the project marketer.

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La Vera delivers a nature-connected address within Macquarie Park’s core

Logistics

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Charter Hall has acquired a 43,000 square metre facility in Western Sydney for $115,000,000.
It was bought from Melbourne based private investment firm Kador Group.
Located in Erskine Park, 40-66 Lockwood Road is leased to workplace solutions supplier Winc Australia for 12 years from August 2020 on a net rent of $5.175 million per annum, with 3.25 per cent annual increases.  
With a gross lettable area of 43,085 square metres on an 8.273 hectare site, the property is zoned IN1 General Industrial and offers 40,000 square metres of warehouse accommodation and 3,000 square metres of office space, split across two floors.
The property also benefits from two truck access driveways and all-weather super awnings located along both the eastern and western elevations.
The transaction was handled by Savills Industrial and Logistics Investments team of Michael Fenton, Michael Wall, and Alison Spiteri.
The property is approximately 47kms west of the Sydney CBD. Surrounding occupiers include TNT Express, Strandbags, Bevchain, Coles, Bluescope, DHL and Linfox.
 
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Charter Hall acquires Western Sydney facility for $115,000,000

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Global supply chain solutions provider, CHEP, has been announced as the latest tenant to join Perth's Roe Highway Logistics Park.
The 56-hectare industrial park launched in February is located adjacent to the State Government’s Kenwick Rail Freight Facility, offering Category RAV 7 Network accessibility from both Roe and Tonkin Highways.
CHEP will occupy a four-hectare lot, with a custom-designed 9,000 square metre facility, set for completion mid-next year. 
Linc Property’s Judd Dyer said securing CHEP, a subsidiary of ASX listed Brambles (BXB), as a major tenant reflected the growing demand for new premium industrial estates in central locations.
Phil Darbyshire, Regional Operations Manager at CHEP Australia, said that relocating to the Roe Highway Logistics Park will allow CHEP to centralise its Western Australian operations. 
In addition to amenity, Roe Highway Logistics Park offers a range of sustainability initiatives including storm water management, solar energy and on-site treatment and recycling of waste water.
Over 50% of the site is already committed, the final stage of civil and landscaping works for Roe Highway Logistics Park anticipated to be complete by the end of the year.
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Other confirmed tenants and businesses include Northline, Brady, K Trans WA, Expro, BP, Silk Contract Logistics, JOEST, Dynapumps and Fuwa K Hitch.
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CHEP is the latest tenant at Perth's Roe Highway Logistics Park

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Warehousing and logistics business Silk Contract Logistics (Silk) has become the latest tenant at the Roe Highway Logistics Park.
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Located in Perth’s eastern industrial core, Roe Highway Logistics Park is a 56-hectare development strategically located adjacent to the State Government’s Kenwick Rail Freight Facility.
The logistics park was launched in late February and over 50% of the site is already committed or under negotiation. 
In addition to Silk, major tenants and businesses include Northline, BP, Brady Corporation, Expro, K-Trans WA, Joest, FUWA K-Hitch and Ideal Sales.
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Signing a long-term lease, Silk has taken up a 4-hectare lot at the industrial park with a custom-built 21,000 square metre warehouse to be constructed. 
Occupancy is scheduled for early 2020.
Linc Property’s Judd Dyer said, “in addition to the best access of any industrial site in Perth, we are able to offer tenants and buyers flexible lot sizes with custom-designed warehouses to suit their individual needs."
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It is forecast that the park will be fully committed within the next six to nine months.
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The first phase of earthworks has commenced for the adjacent Kenwick Rail Freight Facility, which is targeted for completion in late 2020.
Roe Highway Logistics Park has been developed by a consortium comprising WA’s largest private industrial land developer Linc Property, warehouse leasing specialist Gibb Group and Minderoo Group.
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Silk secure lease in Perth Roe Highway Logistics Park

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Agri-logistics is emerging as a growth sector of the Australian real estate market, with more than $1.5 billion worth of assets changing hands over the past two years. 
CBRE Director of Agri-Logistics, Stephen Caffery, said the sector was attracting greater institutional investment, underpinned by the strength of Australia’s industrial, logistics and agricultural markets.  
“On the back of a buoyant industrial &amp; logistics sector, recent free trade agreements, Asia’s investment appetite and capacity for Australia’s agriculture industry to produce high value food and fibre products, there has been a sharp upturn in investment in the sector,” Caffery said.
“Agri-logistics has all the ingredients to become the standout investment class in Australia over the next decade. The sector is the backbone that supports Australia’s $60 billion farm gate production industry each year.
“All of Australia’s agricultural products, at some point, will need to be processed, value-added, stored and transported for either domestic consumption or export markets.
“Investing in these supply chains represents an enormous opportunity for investors looking for long term secure cashflows in assets that are defensive in economic downturns.” 
Highlighting the increased investment in the sector, CBRE is marketing two high quality food manufacturing facilities located in one of Melbourne’s premium South Eastern locations, Braeside.  
The properties located at 91-97 Woodlands Drive (pictured above) and 223-225 Governor Road (pictured below) provide a lettable area of 15,450 square metres.
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They are leased to leading food developer and manufacturer Flavour Makers for 12 years, generating a triple net income of $1,830,000 per annum (with fixed annual increases of 3.0%).  
CBRE’s Ben Hegerty said the Flavour Makers facilities offered a complete end-to-end food development and manufacturing solution with state-of-the-art dry blending facility, liquid processing plant and a meals plant capable of processing both liquid and solid ingredients.
“These facilities are regulatory approved and extensively audited by both domestic and international customers,” Hegerty said. 
“Flavour Makers is experiencing a period of sustained growth and is investing both in increasing existing capability and capacity, as well as investing in new food technologies.
“As a result, they provide a high degree of underlying security for long term, passive investments outside core industrial locations.”
This follows several major transactions in the sector over the past two years including Charter Hall’s $207 million acquisition of the Ingham’s portfolio, comprising 27 poultry supply chain assets in December 2019, and Qualitas’ $388 million sale and leaseback of Allied Pinnacle’s portfolio of 10 grain handling and food processing facilities in March 2018. 
Caffery said agri-logistics assets located outside of traditional industrial heartlands would continue to present attractive opportunities for investors. 
“Agri-logistics assets that are strategically located to maximise supply chain efficiencies represent an outstanding opportunity for investors.
“Taking beef feedlots for example, to operate an efficient supply chain, it makes economical sense to construct feedlots close to reliable grain growing regions, rather than processing facilities to reduce transport costs.”
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Agri-logistics emerging as Australia’s next property growth sector

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GUEST OBSERVER
Australian companies can greatly boost their profitability by making industrial property decisions in strong consultation with supply chain and logistics directors.
There is a growing trend – and it seems to be happening with more urgency – that industrial property companies who’ve traditionally only done deals within their industry need to be made more aware of the growing influence and control of supply chain directors in making property-related decisions.
Within that space, a lot of automation and trends coming down from North America and Europe have the fundamental ability to disrupt how people go about planning their warehouses and distribution centres in Australia today.
By both driving costs and service, supply chains are also being used to add value to the customer experience. Automation allows companies to reduce warehouse footprints, lower head count and improve overall performance. 
Property is an enabler; it’s not a primary decision. So, we basically look at what the company wants to achieve in terms of the customer-service requirements and the competitive landscape. We then provide them with fact-based recommendations to assist their decision on the best infrastructure to support the company’s customer promise – at least cost.
In addition, Siecap regularly conducts studies for the property sector on site logistics implications. Key supply chain cost drivers which need to be taken into account include: site occupancy encompassing real estate, facilities and overheads; labour and handling; inbound freight; inventory and outbound freight and potential surrounding infrastructure changes which could influence these elements.
Companies which have factored logistics into their property decisions have enjoyed network operating cost reductions in the range of 10 to 16 per cent, as well as infrastructure cost reductions and logistics cost and service improvements.
David Irvine is chief executive officer of Brisbane project management and advisory firm Siecap and can be contacted <a href="https://www.siecap.com.au" target="_blank">here</a>.
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Property supply chains key to success: David Irvine

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Transport and logistic tenants dominate the plus 5,000 sqm industrial leasing market in Brisbane, making up nearly 40 percent of all leasing requirements, according to Ray White Commercial.
Leasing volumes in the more than 5,000 sqm market in Brisbane has reached approximately 500,000 sqm in the past two years, Ray White Commercial (Qld) associate director - Industrial Transactions, Dan Costello.
“Transport and logistic tenants dominate the need for large and modern spaces and this segment of the market is particularly active in the pre-lease market,” Costello said. “These tenants are looking to new, purpose built facilities on long lease terms.”
However, manufacturing is a falling segment of the market and now only represents seven per cent of all tenant take-up, and dominates the secondary sector of the market.
“Other consumer uses including automotive, construction and telecommunications collectively represent half of all of the leases with a mix towards prime and secondary assets,” he said.
In her Between the Lines Plus 5,000 sqm Brisbane Industrial Leasing Market report for March 2016 Ray White Commercial's head of Research, Vanessa Rader says the market has gone through a period of uncertainty over the last two years.
“While little speculative supply has been added to the market, the move from existing to new has resulted in an increased vacancy particularly in the secondary asset class,” she said.
“This has resulted in some compression in net face rents across all quality grades, while many larger owners have become more aggressive offering incentives and discounted face rents to secure longer lease terms. Incentives remain a growing concern in the Brisbane industrial market as they are now averaging between 10 to 15 percent.”
Rader said there have been small declines in face rents across most Brisbane regions with the south-east having the lowest average net rent of $99 per sqm.
“The south-west, north and south have reduced by 6.2 percent, 6.3 percent and 6.3 percent respectively with an average rent in the range between $100 per sqm and $102 per sqm,” she said.
“The Trade Coast continues to achieve the highest rent across the Brisbane metropolitan area due to access and quality of stock. This market has attracted a lesser reduction in rents, falling by 5.1 per cent over the last two years to currently average $107 per sqm.”
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Transport and logistics dominate Brisbane industrial leasing: Ray White 

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GUEST OBSERVER
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Changing occupier requirements are the main driver behind the growing sophistication of industrial property. Warehousing has historically been one of the more passive property types however growth in eCommerce and the globalisation of logistics have driven innovative changes to internal fit out requirements. This is leading to greater complexities for occupiers and developers. 
Distribution centres are now far more dynamic – goods are moving faster, higher clearances are required and there is greater demand for natural light and better performing slabs. Occupiers are changing with third party logistics (3PL) experiencing enormous growth and supermarket groups becoming more sophisticated in how they move goods through their distribution channels. Ecommerce providers frequently require specialist internal design and fit out of their warehouses. 
While change is occurring, there is still a wide variation in how occupiers are utilising their space. From highly automated picking systems requiring very little human interaction to boxes on the floor with paper based systems tracking stock levels, the evolution depends on the rate of change in the industry in which the occupier operates. 
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Change 1: eCommerce 
Growth in eCommerce 
More retail trade is moving to eCommerce, although it still remains relatively small compared to traditional bricks and mortar retailing. Although in recent months the weakening of the Australian dollar and the implementation of Goods and Services Tax (GST) on goods bought online from overseas has led to a slowing of eCommerce, it is forecast that for some product types, there will continue to be erosion of spending in traditional bricks and mortar retailing. 
The biggest challenge for eCommerce in Australia is the cost of getting goods from the warehouse to consumers. The vast distances that need to be covered and the insatiable demand from consumers to get goods quickly can make delivering goods particularly expensive. For many operators, rent on a warehouse is a secondary consideration compared to the cost of logistics. 
For traditional retailers with an eCommerce presence, the majority of purchases are still filled out of store. There are generally no specialist online warehouses or special systems developed within existing warehouses to fulfil orders. An exception to this is for particularly large items (e.g. fridges) that are delivered directly from a warehouse to customer rather than from a store when an online order is made. 
This is starting to change for larger retailers. Major supermarket chains previously filled online orders from a store hub but are now starting to use “dark supermarkets”; basically a supermarket in a warehouse, inaccessible to consumers, where staff fulfil online orders. The perishable nature of grocery items means that it is likely that these dark supermarkets will need to be located in each capital city, as opposed to just one location. 
For pure eCommerce groups, the way that they warehouse their goods and handle delivery depends on the type of product they sell, the size of the business and where they source their goods. For most groups, a 3PL service is utilised. The extent to which they use 3PL differs with some using them for delivery only, with others using them for the full end to end service. At its most complete level, 3PL can be used for an eCommerce provider to provide a service from when a consumer presses “buy” on an online site to delivery or even return if the item.
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For large groups selling non-perishable goods that can be delivered in a small parcel, having only one warehouse in Australia makes the most sense. The cost of delivering goods in Australia is generally not dependent on distance and the nature of eCommerce means that it is difficult to predict where the next order will come from. Most products are produced offshore and hence close proximity to a major port is also generally a requirement for occupiers. 
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Change 2: Globalisation of logistics 
Logistics has gone global and is becoming more complex and sophisticated in how it operates. There have been some major changes to ownership in the logistics industry. Toll Group has now become part of Japan Post, Australia Post is now the sole shareholder in Startrack and has been rapidly reinventing itself as a logistics service provider, while global giant Brookfield has made a takeover bid for Australian freight logistics company Asciano. 
These changes to ownership structure, as well as increased usage of 3PL services in Australia has meant enormous growth in the amount of industrial floor space these groups occupy, as well as significant investment in more sophisticated and automated warehousing facilities. The forecast growth these groups expect is also aggressive. Many of them are now looking to partner with developers of industrial facilities, particularly those with significant land holdings, to ensure that they are able to access a pipeline of development. 
A new term for very large warehouses has also emerged. Campus Style Distribution Centres are now a requirement for major groups such as DHL and CEVA, both of which are looking at distribution centres now in excess of 75,000sqm. This trend to larger facilities, able to handle greater quantities, is expected to continue to be a trend in global warehousing. In Asia, most cutting edge facilities are now at least 150,000sqm with the Interlink in Hong Kong comprising 213,000sqm and Logistic Republic – Taipei Park in Taipei expected to comprise 264,000sqm on completion. 
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Change 3: Design 
Who are the leaders in warehousing design? 
Historically warehouses have been relatively simple buildings and there was very little focus put on the internal fit out. This has changed and the most sophisticated warehouses now have slabs that can handle greater loads, larger cubic capacity and high bays. To enable the best use of this space, greater use of robotics and high-tech picking systems are being implemented. 
There is however still significant divergence from these highly advanced warehouses with more simplistic designs still commonly in use. At a broad level, it is primarily the large 3PL groups, as well as large supermarkets and fast moving consumer goods (FMCG) groups that are the most advanced. The scale required by these groups, as well as the speed required to move goods, makes significant investment in fit out worthwhile. They are looking to create improved efficiencies in better designed buildings. 
Another driver of greater cubic capacity, as well as high bays, is the location of the warehouse. In a market such as Melbourne where land availability remains abundant, it is unlikely there will be as much demand. This contrasts to Sydney where land costs are significantly higher. 
There is a greater focus on the indoor working environment of warehouses. This is to allow better working conditions for staff, but also better conditions for storing goods. Better ventilation, constant temperature and high security are a greater focus. The ability to operate the warehouse 24 hours a day is also frequently a greater consideration. 
Sustainability continues to play a role and more facilities are moving to a 6 Star Green Star rating. The focus is however less on committing to minimum targets but looking to achieve demonstrable cost efficiencies. Developers are looking to add value to occupiers and this can include offering such inclusions as power off facilities, advanced monitoring and geothermal generation. 
High tech retrieval systems start to make a mark 
There are still only a few occupiers that are using high tech retrieval systems. The capital costs are so high and hence this restricts investment for many occupiers. Spending on research and development of these systems is however continuing to increase and costs are expected to come down significantly over the next decade, to the extent that there will continue to be less people required to operate a warehouse. 
There is a range of how sophisticated occupiers are being in the use if retrieval systems. At the most advanced level, automated robotics have the ability to completely do away with forklifts however these are too expensive for most occupiers. Mobile automation appears to be having quicker take up. An example of this is mini forklifts that are able to operate on any surface. These forklifts are highly mobile, allow for higher stacking and provide the ability to pick one item, instead of taking a whole pallet. 
Nerida Conisbee is national director of research for Colliers International and can be contacted <a href="https://www.colliers.com/nerida.conisbee" target="_blank">here</a>.
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