[+] Going Up: Goodman Corners Multi-Storey Sheds

Goodman Group is expecting to receive the green light on its second multi-storey shed on Australian soil next year in a trend likely to gather pace in land-locked Sydney. The market dynamics have hit pay dirt in the industrial sector where competition for land has grown so fierce that developers are turning to more intensive development on precious sites. Goodman lodged State Significant Development plans for its multi-storey shed at 1-3 Burrows Road this month, down the road from another it had broken ground on at Alexandria, 5km south of the Sydney CBD. It owns a multi-storey shed in Japan, but this would be the first of two in Australia. Architecture firm Welsh + Major recently won the competition to design the project. According to planning documents, the new building typology aims to “set the benchmark” for an emerging asset class and redefine Australia’s premium logistics experience. The three-storey curved facade would form a “significant landmark and gateway” into the existing industrial precinct in Sydney’s inner west. The new shed would add 47,000sq m of warehouse and six levels of office space, taking the building height to 30 metres. Welsh + Major tipped out the competition to design the new-wave shed for Goodman Group, with the likes of Logos, ESR and Charter Hall also in market to take on the multi-storey industrial typologies. ▲ A render of the Goodman Group warehouse proposed for the Alexandria site. “We are excited to be part of the development of this emerging building typology,” principal Chris Major says. “These are large buildings that are an essential part of contemporary life. Design excellence, acknowledging and designing for Country , and best practice sustainable initiatives make this an important project for our city.” The design also include state-of-the-art amenities including rooftop gardens, a gym, end-of-trip facilities, and a cafe on the 3.4ha site. It includes strong ESG provisions targeting net zero embodied carbon certification upon completion, a 5-star Green Star rating and a 5.5 NABERS rating through a rooftop solar array and water harvesting. The 260m facade will be bookended by a pair of three-storey circular vehicle ramps capped with rooftop gardens. These contexts are more complex than traditional industrial sites in terms of urban design and place-making, Welsh + Major principal David Welsh says. “The need to consider the contextual adjacencies of other uses such as residential, commercial and retail, and the greater impact they have on the urban environment require a more considered design approach than what has traditionally been required,” Welsh says. “Designing a building of this size presents distinct design opportunities—at a more abstract level the ability to explore ideas at scale—principles of balance, rhythm and movement through repetition of a well-designed idea is a wonderful opportunity. “It can also unlock efficiencies and economies of scale that can only be explored on larger buildings.” Sydney’s industrial vacancy rate is down to 0.3 per cent and rents have surged 30 per cent in the past 12 months, adding fuel to the fire driving the move to multi-storey warehousing. According to CBRE, the trend to multi-storey warehousing is driven by high land prices, low vacancy rates and constrained land supply. The multi-storey warehouse is typified by its heavy vehicle ramp access to its upper levels, multiplying its lettable space. It’s not the first multi-storey warehouse in Australia. Amazon’s four-storey Kemps Creek robotic fulfilment centre took the ribbon, but Goodman Group is at the crest of the wave of new shed developments for Sydney. ▲ A render of the warehouse designed by Welsh + Major. The industrial sector has had a sustained hot streak with ongoing demand for space. Multi-storey warehouses are on average 83 per cent more expensive to construct, but their value in last-mile logistics is well established. The market has seemingly hit the pivot point where it has become commercially feasible to take on the additional engineering and construction costs of multi-storey sheds. CBRE managing director of supply chain advisory Joe Dunlap says location is key for multi-storey warehousing. “Transportation represents a large share of overall supply-chain costs for transport and logistics operators, accounting for about 50 per cent of the total,” Dunlap says. “It takes roughly an 8 per cent increase in fixed-facility costs to equal the impact of just a 1 per cent increase in transportation costs.” Rental growth is expected to continue its upward trajectory in the industrial sector with CBRE forecasting a 9 per cent growth over the next four years. CBRE head of industrial and logistics in South Sydney William Gathercole says rents are continuing to skyrocket as a result of ongoing demand and limited supply of new stock, which is giving rise to brownfield development. “A lot of the old warehouses are non compliant. The design was good 50 years ago but now you’ve got all this automation and different requirements,” Gathercole says. “A lot of developers are moving to the multi-storey big-box developments, but interestingly they are only for lease, not for sale.” Gathercole says there is appetite to sustain the new wave of multi-storey warehouse developments hedged for Sydney’s inner-city. You are currently experiencing The Urban Developer Plus (TUD+), our premium membership for property professionals. Click here to learn more.

[+] Going Up: Goodman Corners Multi-Storey Sheds

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