Rethinking the interface between industrial and other urban land uses

…Australian case studies

European Real Estate Society Conference Vienna, Austria - July 2013

Professor Mike HefferanPro Vice-Chancellor (Engagement) &Professor Property & Development

Rethinking the interface between industrial and other urban land uses … Australian case studies

This presentation:

(1) the ‘conventional’ approach to industrial land uses and

location – and challenges to that

(2) this research - purpose and methodology

(3) outcomes

(4) conclusions.

(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(ii) input costs/availability, infrastructure and markets(iii) town planning/development control

…. and all three have changed / are continuing to change (irreversibly)

obviously interrelated

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.).

(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 !)

(1) The conventional approach to industrial land use and location and challenges to that (contd.)

(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

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)

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 propertytwo distinct (significant) groupings (normally larger scale) free standing modules within built enclaves (normally community

title) owner occupiers or investors or tenants.

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.

(3) Case Study Outcomes

Case Study locations - South-east Queensland & Northern New South Wales

Sunshine Coast

Brisbane

Ipswich

Beenleigh

Gold Coast

Byron Bay

Sunshine Coast…natural advantage

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

Ref: maps.google.com.au

Sunshine Coast Industrial Land ... Case Study

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

Locality Map

Noosaville

Coolum

Nambour

Kunda Park

Forest Glen

Caloundra

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).

Ref: www.aerialadvantage.com.auRef: wikimedia.org

Ref: The Queensland Times

Ref: www.waltzingmorethanmatilda.com

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: www.babyboomercentral.com.auRef: australiaforeveryone.com.au

Ref: www.jumboaerial.com.au

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.lighthouse.net.au

Ref: www.australiantraveller.com

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.)

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.

(4) Conclusions

Rethinking the interface between industrial and other urban land uses

…Australian case studies

Comments/input/further information:

Professor Mike HefferanPro Vice-Chancellor (Engagement) andProfessor of Property and EngagementUniversity of the Sunshine CoastQueensland, Australiamhefferan@usc.edu.auTel: + 61 7 5456 5169