Industrial Property Market in the Northern Territory
The Darwin industrial market is distinguished by 5 main areas. Winnellie and Berrimah are the innermost, traditional industrial suburbs of Darwin with land availability restricted to newer subdivisions such as:
Holtze/Pinelands is located on the Stuart Highway midway between Darwin and Palmerston, providing General Industry zoned land. Yarrawonga is the industrial suburb of Palmerston, providing Service Commercial zoned land. East Arm is located adjacent to the port and rail head, with new land being turned off by the Land Development Corporation. Development is generally of larger scale industry related to the transport, logistics or oil/gas based industries, including national and multi-national companies. A marine supply base is currently being developed to service off shore industries.
Tivendale/Wishart is a developing area between East Arm and Palmerston, with two new industrial subdivision including Wishart Business Precinct. Wishart Business Precinct is privately owned, with up to 300 hectares available for development in stages over the coming years.
Vacant land values range from around $180 per sqm for larger than 1 hectare parcels in the outer areas, though to an expected maximum of around $500 per sqm for smaller sized parcels in the inner traditional area of Winnellie.
Recent rentals indicate a base rate for larger sized industrial warehousing starting at around $90 per sqm through to a maximum of $150 per sqm for purpose built facilities.
Sales evidence indicates yields for good quality, well tenanted property starting at around 7.0%, through to around 9.5% for less prime, older premises.