Listed industrial property juggernaut Goodman Group will accelerate its $5 billon development program to cope with the rising demand for warehouses as online retail sales boom globally.
The company has re-affirmed its full-year earnings guidance of an 11 per cent rise in operating earnings per security to 57.3 cents, with Mr Goodman saying demand for warehouse space has come from a mix of industries, ranging from the food and pharmaceutical sectors to data storage. Consistent with other landlords, Goodman indicated it is working on a one-on-one basis with its customers who are genuinely suffering financial distress as a direct result of COVID-19. Mr Goodman said these tenants are a "vey small component of the global portfolio".Malcom Tyson, managing director, industrial at Colliers International, says industrial property is undergoing structural and cyclical changes, with the pandemic " playing into the hands of the sector".
"The panic buying of consumer staples during uncertain times like these has put food manufacturers and suppliers in the position of making sure their network of distribution and warehousing facilities are adequate to handle these types of demand spikes on a regional basis," Mr Crawford said.