Businesses looking to rent warehousing space in Australia could gain a much better price in its capital cities than it its mining communities.
Colliers International showed that in Port Hedland Western Australia, for example, rent could cost up to $500 per square metre compared to Perth where it would only cost $109. Port Hedland is the largest region for iron exports in the world.
Rent in such areas as Port Hedland was increased during the mining investment boom last year. Despite the fact mining investment has now slowed, the cost of leasing warehousing space in mining communities remains high.
The reason that Colliers says mining rent remains expensive is because demand for resources is high in the developing world, meaning that it is still sustainable.
While investment in mining may seem attractive still, Colliers warns that there is a higher risk when investing in areas with only one industry compared to areas, such as capital cities, where multiple sectors operate.
Posted by Steve Douglas
