Urbis Think Tank
Accommodating the boom in logistics and data centre jobs
Content provided by Erin Saunders
The on-going growth of jobs within the logistics and Information Technology sectors has translated into a strong demand for bespoke development of employment lands.
The logistics sector includes a wide variety of jobs such as supply chain analysts, transport analysts, solutions architects and logistic engineers – as well as more traditional warehouse orientated jobs. IT jobs located in employment lands are typically housed within data centres and there is a trend toward the agglomeration of these operations into one, hybrid facility.
Growing demand has been observed for the co-location of operational facilities and administrative headquarters within a variety of businesses and sectors, in some instances requiring upwards of 10,000m² of office floorspace.
It is difficult to question the benefits of these hybrid operations in terms of job creation, with professionalised industry, incorporating a component of office floorspace, generating job densities in excess of 100 jobs per hectare in comparison with average job densities on industrial lands across Sydney of 43 jobs per hectare.
However, accommodating a greater proportion of office space on site to house the administrative and managerial functions associated with these emerging paradigms represents an increasing challenge for the development of employment lands.
With many Councils restricting the amount of office floor space on industrially zoned land, keeping pace with market demand for these types of ‘new economy’ jobs can be difficult and Urbis has assisted numerous proponents to achieve higher rates of office content through nuanced planning and property economics advice.
In light of the changes occurring in the manufacturing and logistics sectors as a result of macro-economic conditions and technological advancements, innovative approaches to the development of employment lands are set to become crucial to building a resilient jobs base into the future.