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Warehouse rent lower in capital...

Warehouse rent lower in capital cities, says Colliers

Industrial rent in mining areas remains high due to worldwide demand for resources, says Colliers.

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

All information provided is of a general nature only and does not take into account your personal financial circumstances or objectives. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances. This information does not constitute a recommendation to invest in or take out any of the products or services provided by SMATS Services (Australia) Pty Ltd or Australasian Taxation Services Pty Ltd.

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