What is an Industrial Property?
An industrial property in Australia refers to land, buildings, or facilities specifically designed and zoned for manufacturing, warehousing, logistics, distribution, and other industrial activities. These properties cater to businesses involved in production, storage, and movement of goods. Industrial properties vary in size, complexity, and use, and are governed by zoning regulations that ensure compatibility with surrounding land uses and compliance with environmental, safety, and operational standards.
Industrial properties are vital for Australia’s economic infrastructure, serving industries such as manufacturing, construction, logistics, and resource extraction.
Applicable Zoning for Industrial Properties
Industrial properties are regulated by zoning laws specific to each state and territory, defining the permissible uses and operational restrictions. These properties are primarily located in Industrial Zones, with allowances for certain mixed-use zones depending on the nature of the business.
1. Common Zoning Categories
General Industrial Zones (IN1Z)
Purpose: Accommodates light to heavy industrial activities, including manufacturing, warehousing, and distribution.
Typical Areas: Industrial estates and logistics hubs.
Examples: Warehouses in Sydney’s Western Suburbs (e.g., Wetherill Park).
Light Industrial Zones (IN2Z)
Purpose: Focuses on activities with minimal environmental impact, such as small-scale manufacturing or assembly.
Typical Areas: Suburban or peri-urban areas.
Examples: Mixed-use developments in Fortitude Valley, Brisbane, combining apartments and offices.
Industrial Zones (IN1Z, IN2Z)
Purpose: Focuses on activities with minimal environmental impact, such as small-scale manufacturing or assembly.
Typical Areas: Suburban or peri-urban areas.
Examples:Artisan workshops or tech assembly facilities in Brisbane’s inner suburbs.
Heavy Industrial Zones (IN3Z)
Purpose: Designed for industries involving large-scale manufacturing or operations that may generate significant environmental or noise impacts.
Typical Areas: Regional areas or locations away from residential zones.
Examples:Mining-related facilities in Port Hedland, WA.
Business and Technology Zones
Purpose: Allows integration of industrial activities with high-tech or research functions.
Typical Areas: Technology parks and innovation precincts.
Examples:Advanced manufacturing hubs in Melbourne’s Fishermans Bend precinct.
Special Use Zones (SUZ)
Purpose:Dedicated to specific industries or large-scale projects requiring unique zoning conditions.
Typical Areas:Ports, airports, and renewable energy precincts.
Examples:Port of Brisbane industrial facilities.
2. Zoning Framework by State and Territory
Each state and territory manages industrial zoning under its own planning framework. Below is a breakdown of zoning schemes:
New South Wales (NSW):Governed by the Environmental Planning and Assessment Act 1979, industrial uses are primarily permitted in zones like IN1 General Industrial and IN2 Light Industrial.
Examples:Logistics hubs in Eastern Creek.
Victoria (VIC):Under the Planning and Environment Act 1987, industrial zones include Industrial 1 Zone (IN1Z) for general industrial activities and Industrial 3 Zone (IN3Z) for lighter operations near residential areas.
Examples:Manufacturing facilities in Dandenong South.
Western Australia (WA): Planning and Development Act 2005 includes General and Heavy Industrial Zones, focusing on mining-related and export-oriented facilities.
Examples:Heavy industry in Kwinana Industrial Area.
South Australia (SA):Planning and Development Infrastructure Act 2016 includes Employment and Suburban Employment Zones.
Examples: Industrial estates in Wingfield, Adelaide.
Tasmania (TAS): Tasmanian Planning Scheme permits industrial uses in General Industrial and Light Industrial Zones.
Examples: Warehouses in Hobart’s Derwent Park.
Northern Territory (NT): Planning Act 1999 allows industrial uses in Industry Zones, often supporting resource extraction industries
Examples: Darwin Port industrial precinct.
Australian Capital Territory (ACT): The Territory Plan permits industrial activities in IZ1 General Industry Zones and IZ2 Mixed-Use Industrial Zones.
Examples: Industrial sites in Hume, Canberra.
Breakdown of Industrial Property Types
1. Warehousing and Logistics Facilities
Description: Properties designed for storage and distribution of goods.
Features: High-clearance ceilings and large floor areas.
Loading docks and transport access.
Proximity to major highways, ports, or airports.
Examples: Amazon's fulfillment centres in Sydney.
2. Manufacturing Facilities
Description: Spaces equipped for the production, assembly, or processing of goods.
Features: Specialised infrastructure like power supply and ventilation.
Heavy machinery accommodations.
Compliance with environmental and safety regulations.
Examples:Automotive assembly plants in Victoria.
3. Industrial Parks
Description:Planned estates housing multiple industrial tenants.
Features: Shared facilities like parking and utilities.
Designed to optimise traffic flow and logistics.
Examples:Sydney Business Park in Marsden Park.
4. High-Tech and Advanced Manufacturing Facilities
Description: Combines industrial production with cutting-edge technology.
Features: Clean rooms and specialised equipment.
Research and development capabilities.
Examples: Biomedical manufacturing facilities in Melbourne.
5. Distribution Centres
Description: Large-scale facilities focused on supply chain operations.
Features: Integrated technology for inventory management.
Strategically located near transport hubs.
Examples: Coles and Woolworths distribution centres in Brisbane.
6. Cold Storage and Refrigerated Warehouses
Description: Facilities designed for perishable goods requiring controlled temperatures.
Features: Advanced refrigeration systems.
Insulated walls and energy-efficient designs.
Examples: Food storage warehouses in Adelaide.
7. Flex Spaces
Description: Multi-purpose spaces combining office and industrial functionalities.
Features: Small-scale production areas with adjoining offices.
Suitable for startups and small businesses.
Examples: Hybrid office-industrial spaces in suburban Melbourne.
8. Heavy Industrial Sites
Description:Properties supporting large-scale, high-impact industrial activities.
Features: Proximity to ports, railways, or resources.
Infrastructure for heavy machinery and bulk materials.
Examples: Mining support facilities in Western Australia.
9. Renewable Energy Industrial Facilities
Description: Properties dedicated to clean energy production or storage.
Features: Solar farms, wind turbine assembly areas, or battery storage.
Advanced energy management systems.
Examples: Renewable energy hubs in regional Queensland.
Key Considerations for Industrial Properties
1. Regulatory Compliance
Safety Standards: Adherence to the Work Health and Safety (WHS) Act.
Environmental Regulations: Compliance with Environment Protection Acts at federal and state levels.
Fire Safety: Installation of sprinklers, exits, and emergency equipment.
2. Location and Accessibility
Close proximity to major transport infrastructure, such as highways, ports, and railways. Compatibility with zoning and land use planning requirements.
3. Infrastructure
Power Supply: Capability to handle industrial-grade electricity needs.
Water and Waste: Proper drainage and waste management systems.
4. Economic and Operational Factors
Leasing costs influenced by proximity to urban centres and transport hubs. Facility adaptability for evolving industrial requirements.
5. Sustainability and Technology
Adoption of sustainable designs, such as energy-efficient systems and green building materials. Integration of automation and IoT for logistics and inventory management.