New analysis by TMX Transform has found in the last 12 months major healthcare and pharmaceutical client companies have invested in more than 150,000 sqm of new operational property sites.
It says the investment is equivalent to 7.5 Melbourne Cricket Grounds and is predominantly along Australia’s eastern seaboard.
Another 100,000 sqm of potential property projects may be developed in 2024, with companies finalising business cases now to proceed with their transformation projects.
“All of these projects include a minimum scale build of around 13,000 sqm because pharma businesses need space to hold stock, as many of their products are not ‘discretionary’ but essential,” says TMX Director of Property Jack Moroney.
“Put simply, the consumer health and pharmaceutical sector is driven by the need to hold readily accessible stock in storage to meet fluctuations and potential spikes in consumer demand.”
TMX Transform notes rapid investment in new industrial space is testament to the resilience of the healthcare and pharmaceutical industries, despite the current volatile economic environment.
At the same time, high operating costs and ageing property facilities are driving many health-related businesses to reassess and transform their supply chains to drive efficiency and productivity gains.
But many consumer industries producing discretionary spending goods – by contrast – are ‘space shedding’ and subleasing space in their warehouses.
“With the support of TMX, we conducted a comprehensive review of our supply chain with the aim of improving customer experience and to support future growth,” Essity CEO Sid Takla says.
Companies investing in the Australian eastern seaboard include:
- Essity (consumer health products) which has committed to just under 50,000 sqm of new purpose-built facilities with Charter Hall, in Wacol Queensland (13,572sqm) and Tarneit, Victoria (34,788sqm).
- API (consumer pharmaceuticals) which has committed to a 26,292 sqm facility at Berrinba in Queensland.
- Device Technologies (medical devices and supplies) which has practically completed its 17,000 sqm facility in Marsden Park, New South Wales.
- Probiotec (pharmaceuticals manufacturer) which has committed to a 36,003 sqm facility in Kemps Creek, Sydney.
For more information on TMX Transform, click here.