- Competitive tender process conducted in late 2021
- Cygnet West to report on the industrial land sector
- Includes Perth, Peel and the regions
Following a competitive tender process in late 2021, DevelopmentWA has appointed Cygnet West’s Valuation, Research and Advisory division to provide market intelligence and insights on Western Australia’s industrial land sector.
The appointment is for an initial term of two years, delivering quarterly reports on the Perth, Peel and Greater Bunbury regions, and annual reviews of Gerladton, Kalgoorlie-Boulder, Albany, Port Hedland, Broome, and Karratha.
The appointment aims to:
- Monitor industrial lot supply fluctuations,
- Evaluate types of product available for sale,
- Measure market absorption of available lots,
- Assess adequacy of supply,
- Examine the ILA’s market share, and
- Provide an overview of WA’s industrial land market.
Cygnet West will deliver reports detailing the number and availability of serviced and development-ready individual vacant industrial lots in WA from private developers as well as the Industrial Lands Authority (ILA).
The status quo
Perth and various regions in WA have been historically “ill-prepared for significant increases in industrial land demand”, according to Cygnet West Director Valuation, Research and Advisory John Del Dosso. He noted this was evident during the resource sector investment cycle of 2003 to 2016.
“The subsequent absorption of available industrial space and land in a market of limited stock and short-term supply saw rents and vacant land prices surge between 2005 and 2007,” Mr Del Dosso said.
“This lack of preparedness and the market’s inability to accommodate the demand likely constrained business activity and economic growth, as the State and market adjusted to meet the demand.”
John Del Dosso, Cygnet West Director Valuation, Research and Advisory
Mr Del Dosso also spoke about the “pivotal role” Development WA’s ILA had in ensuring industrial land supply in the state.
“As such, we understand the importance to DevelopmentWA of maintaining thorough oversight of the state of the industrial land market and the broader industrial property sector.”
“We have been able to offer DevelopmentWA a team that is supported by the right balance of industry expertise, resources, corporate strength, and reputation, and we’re delighted to have been appointed to support the agency in an area so important to the ongoing growth and economic prosperity of our State,” said Mr Del Dosso.