European Real Estate Society Conference Vienna , Austria - July 2013

1. Rethinking the interface between industrial and other urban land uses …Australian case studies Professor Mike Hefferan Pro Vice-Chancellor (Engagement) & Professor Property & Development European Real Estate Society Conference Vienna, Austria - July 2013

2. Rethinking the interface between industrial and other urban land uses … Australian case studies This presentation: • the ‘conventional’ approach to industrial land uses and location – and challenges to that • this research - purpose and methodology • outcomes • conclusions.

3. (1) The conventional approach to industrial land use and location and challenges to that (Typical) key locational drivers of industrial land use… (i) historic and natural advantages • input costs/availability, infrastructure and markets • town planning/development control …. and all three have changed / are continuing to change (irreversibly) obviously interrelated

4. (1) The conventional approach to industrial land use and location and challenges to that (contd.) Critical changes (especially in regions) • recent past/continuing demise of most, ‘main-stream’ manufacturing • further loosening of ‘locational bonds’ because of: • smaller scale (personal & personnel decisions) • Increased importance of ‘knowledge based’, ‘lightweight’ product • impacts of ICT & relative ease of access (often peri-urban) • the emergence of options/choice • of remaining manufacturing, much is progressive/viable and, • tends to be ‘service’ oriented (i.e. deal direct with public) • link with ‘value add’ to other sectors (e.g. rural, tourism, ICT, health etc.).

5. (1) The conventional approach to industrial land use and location and challenges to that (contd.) • in many cases, contemporary town planning based on low density and segregated land uses is demonstrably working against urban sustainability and these types of contemporary industrial uses. -presumes a requirement for spatial separation, scale/use of infrastructure/services that may now simply not be the case -may overestimate the importance of clustering and underestimate the importance of direct sales or distribution activities. (plus a lesson in the permanency of subdivision !)

6. (2) This research …. purpose and methodology • A joint research project between USC and Sunshine Coast Regional Council – to inform economic development strategies and new town plan (under development) • Methodology • literature review (surprisingly little in academic papers/text or the basis for previous government policy) • local government records • focus group with professionals involved • semi-structured interviews with key informants • comparative case studies (Sunshine Coast, Brisbane, Ipswich, Beenleigh, Gold Coast and Byron Bay) • Outcome • report and presentations … paper to follow • Period – September 2012-July 2013

7. Research Methodology… • Literature review • texts/journals • regional council records • Australia Bureau of Statistics (ABS) ….2011 census data available • industry data/research • Focus group/workshop • 12 professionals (planners, valuers etc. directly involved) – ‘key informants’ • Individual semi-structural interviews • government/council • agents • land-owners/developers • Five (diverse) case studies (for comparison South-east Queensland and northern New South Wales)

8. Industrial Market/Use Subsectors (not mutually exclusive) • Sites – immediately available, englobo developers/investors, would-be owner occupiers, corporate owners, state or local government, long-term individual owners • Developed industrial property two distinct (significant) groupings • (normally larger scale) free standing • modules within built enclaves (normally community title) owner occupiers or investors ortenants.

9. (3) Case Study Outcomes Very limited underlying published research – and reliable data at a regional level generally poor but… all regions identified changes and challenges of existing planning regions ‘responses’ have fundamental differences.

10. Case Study locations - South-east Queensland & Northern New South Wales Sunshine Coast Brisbane Ipswich Beenleigh Gold Coast Byron Bay

11. Sunshine Coast …natural advantage

12. Sunshine Coast, Queensland, Australia • 320,000 population (very rapid growth) • peri-urban (part of SEQ, 3 million, 90 km north of Brisbane) • coastal strip (70km long, subtropical, environmentally sensitive) • relatively narrow economic base • changing demographic • an aspirational place

13. Sunshine Coast Industrial Land ... Case Study Locality Map Key characteristics… • (overall) ‘villages’, coastal and hinterland towns • scattered – three major estates, 12 other small/scattered • never had a main manufacturing base (except sugar and small scale dairy) • close proximity to Brisbane (positive or negative aspects) • limited rail infrastructure, to gas • retraction of some manufacturing (e.g. fabrication/concrete manufacture) • importance of home market • Key role of government holdings Noosaville Coolum Nambour Kunda Park Forest Glen Caloundra Ref: maps.google.com.au

14. Industrial Market/Use Subsectors (not mutually exclusive) (contd.) • Key types • small/one-off (e.g. high-end manufacturers) – largely locally, independent • considerable sales direct to public • ‘value add’ to existing – often with retail/tourism component (e.g. rural value-add) • linked to distribution (e.g. close road access to Brisbane market and south).

15. Ipswich(40km west of Brisbane) • traditional manufacturer (rail, power, woollen mills etc.)… threatened • large scale, infrastructure workforce and cheap land • political leadership – with success! • but with risk when major firm failures occur • move to distribution and quasi-retail Ref: The Queensland Times Ref: wikimedia.org Ref: www.waltzingmorethanmatilda.com Ref: www.aerialadvantage.com.au

16. Beenleigh(30km south of Brisbane) • industry uses separated but generally works well • conforming uses – manufacturing, transport industry, distribution (larger) • key attributes – links to F1 (Highway 1), and location Brisbane (north)-Gold Coast-South • combined action by cluster (e.g. with government, worker transport/support) Ref: www.jumboaerial.com.au Ref: australiaforeveryone.com.au Ref: www.babyboomercentral.com.au

17. Byron Bay(about 200km south of Brisbane) • an iconic area, ‘distant’ from big centres • no traditional ‘industry’, green – tourism, alternative • truly innovative ‘industrial’ estate that integrates a wide range of uses – industrial, support, retail and others • ‘regional marketing’ of industry production (clothes, food, sports goods etc.) Ref: www.lighthouse.net.au Ref: www.australiantraveller.com

18. (4) Conclusions On the basis of this study … • the fundamental shift in ‘industrial’ land uses, particularly in peri urban areas is confirmed (changed but certainly not dead!); • in these new models, traditional locational parameters may not be as strong, nor might traditional supply chains/clusters. Such uses are likely to integrate with ‘value add’ to other sectors – rural, tourism and especially services/quasi retail; • distribution centre growth is confirmed … but highly dependant on geography and transport infrastructure; • emerging models vary greatly from region to region; • in much of this, conventional land use control (e.g. segregation of land uses, highly prescriptive development approvals etc.) are frustrating, not facilitating, the development now demanded.

19. Rethinking the interface between industrial and other urban land uses …Australian case studies Comments/input/further information: Professor Mike Hefferan Pro Vice-Chancellor (Engagement) and Professor of Property and Engagement University of the Sunshine Coast Queensland, Australia mhefferan@usc.edu.au Tel: + 61 7 5456 5169