Yarra Council. Draft Business and Industrial Land Strategy. Background Report Part 2

Draft for public consultation
Yarra Business and Industrial Land Strategy / City of Yarra
Aside from the area surrounding the Botanicca Corporate Park in Swan Street, Burnley, up to 45% of graduate and postgraduate skills are available within a thirty minute drive. This reflects the distribution of the resident population across Yarra which is within the Victoria, Bridge and Swan Street corridors and to the north and south of Alexandra Parade.
Figure 8: % of Graduate and Postgraduate Population Accessible Within 30 Minutes Drive, Yarra Focus Map, 2011
Source: SGS Economics and Planning
Background Report endorsed by Council for public release 18-10-11.docx
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2.6.4
Employm ent by Industry (W orkers)
In 2006, Yarra had a total job stock of 57,000 jobs, an increase from 52,800 jobs in 1996. Figure 9 shows employment by industry in Yarra from 1996 to 2006. In 2006, the key sectors of employment were Health Care and Social Assistance (9,600 jobs), Professional, Scientific and Technical Services (6,900 jobs), and Retail Trade (6,700 jobs). This profile has changed since 1996 where the dominant sectors were Manufacturing (10,100 jobs), Health Care and Social Assistance (8,300 jobs) and Wholesale Trade (6,200 jobs). Both Manufacturing and Wholesale Trade have been in decline since 1996. This indicates that the Yarra economy has been restructuring broadly in line with national trends where inner region based manufacturing has become more efficient or has declined in absolute terms. In many cases, traditional forms of manufacturing have been lost or relocated to more cost competitive countries such as China. Employment in Yarra is now linked to professional services which can support high labour costs and derive benefits from an inner city location. Population driven sectors such as Retail Trade, Construction, and Health Care and Social Assistance have also seen growth in employment.
Figure 9: Employment by Industry, Yarra LGA, 1996 2006

12,000 10,000 8,000
6,000
4,000 2,000 -
Accommodation and Food Services
Rental, Hiring and Real Estate Services
Professional, Scientific and Technical Services
Transport Postal and Warehousing
Administrative and Support Services
1996
2001
2006
Source: ABS JTW, SGS Economics and Planning
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Health Care and Social Assistance
Agriculture, Foresty and Fishing
Electricity, Gas, Water and Waste Services
Financial and Insurance Services
Public Administration and Safety
Arts and Recreation Services
Manufacturing
Information Media and Telecommunications
Education and Training
Wholesale Trade
Other Services
Mining
Construction
Retail Trade
From 1996 to 2006, Yarra saw strong growth in Professional, Scientific and Technical Services (+4.6% p.a.), Retail Trade (+3.4% p.a.) and Health Care and Social Assistance (+1.4% p.a.). The economy is also diversifying with sectors such as Accommodation and Food Services (+1.8% p.a.), Financial and Insurance Services (+13.6% p.a.) and Arts and Recreation Services (+3.3% p.a.) all increasing off a low base from 1996. Financial and Insurance Services has seen an increase of 2,700 jobs over the ten years to 2006. In the Yarra North SLA, key growth sectors have been Financial and Insurance Services (+9.8% p.a.), Education and Training (+2.8% p.a.), Construction (+2.8% p.a.) and Retail Trade (+2.4% p.a.). In the Yarra Richmond SLA key growth sectors are Financial and Insurance Services (+16.2% p.a.), Rental, Hiring and Real Estate Services (+8.1% p.a.), Arts and Recreation Services (+7.6% p.a.) and Administrative Support Services (6.2% p.a.). In all, the Yarra - Richmond SLA accounts for broad range of growth sectors. These trends will have significant implications for land allocation for business and industrial uses. The proximity of the municipality to the CBD will mean that land for office based uses could be in higher demand whilst demand for industrial land could change to reflect a changing employment profile. It is possible that traditional industrial land could transition to support higher order manufacturing or mixed uses with a larger office component than what has been seen previously.
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-15.0% 15.0%
-20.0% 10.0% -5.0%

0.0%
-10.0% 5.0%
20.0%
Agriculture, Foresty and Fishing
Mining
Manufacturing
Yarra (C) - North

Construction Wholesale Trade
Retail Trade
Yarra (C) - Richmond
Transport Postal and Warehousing

Yarra (C)
Information Media and Telecommunications Financial and Insurance Services
Figure 10: Employment Change by Industry, Yarra SLAs, Yarra LGA, Inner Melbourne and Melbourne, 2006
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Inner Melbourne Melbourne SD

Public Administration and Safety Education and Training

Other Services
Figure 11 shows the percentage of total jobs accessible within 30 minutes drive for the Melbourne SD in 2011. Yarra is well placed adjacent to the CBD and within the CBD-eastern suburbs corridor where 60% of all jobs are accessible within a thirty minute drive. This high quality accessibility is related to a range of factors including high quality east-west arterial roads including Citylink and the Monash Freeway and a high job density along the eastern corridor in employment precincts and activity centres.
Figure 11: % of Total Jobs Accessible Within 30 Minutes Drive, Melbourne SD, 2011
Figure 12 shows a focus map (of the above) for Yarra. The vast majority of jobs within Yarra are accessible within thirty minutes drive. This reflects the concentration of employment within the
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western portion of the city closest to the CBD and high quality accessibility offered by road, rail and tram corridors. These areas also contain major activity centres and employment precincts around Cremorne, Burnley, Richmond, and Fitzroy which account for significant employment. Areas to the north-east are not as well integrated with the inner region and are predominantly residential or account for a significant share of public open space (Yarra Bend Park). Around 45% of jobs in this area are accessible within a thirty minute drive.
Figure 12: % of Total Jobs Accessible Within 30 Minutes Drive, Yarra City Focus Map, 2011
Figure 13 shows the percentage of total jobs accessible within 30 minutes by public transport for the Melbourne SD in 2011. This has been included by way of comparison with Figure 11 (total jobs accessible by vehicle) and the comparatively lesser access offered by public transport. Yarras
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position within the inner region makes it accessible to around 15-30% of total jobs although this is less than the Melbourne CBD which is accessible to, at most, 30% of total jobs. This profile changes as travel times become longer with those areas adjacent to the rail corridors the most accessible to employment.
Figure 13: % of Total Jobs Accessible Within 30 Minutes by Public Transport, Melbourne SD, 2011
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Figure 14 shows the percentage of total manufacturing jobs accessible within thirty minutes drive for the Melbourne SD in 2011. This map shows a tightening of employment accessibility around key road transport routes particularly the Monash Freeway and the Tullamarine Freeway to the north-west. This reflects the shifting profile of this industry which is relocating to cheaper and more accessible land in the suburbs whilst retaining elements of local manufacturing and service industry in the inner region. Yarra City still accounts for a share of Melbournes manufacturing employment although this is becoming more specialised and focussed around core precincts of industrial activity within the municipality. Greater detail for Yarra is shown in Figure 14.
Figure 14: % of Total Manufacturing Jobs Accessible Within 30 Minutes Drive, Melbourne SD, 2011
Figure 15 shows a focus map (of the above) for the manufacturing industry in Yarra. This reflects the nature of manufacturing in Yarra becoming more precinct focussed around those areas which
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retain a critical mass of manufacturing jobs, have sufficient accessibility, and operate in niche markets. Increasingly, the emphasis is on small businesses which are capable of adapting or operating within a congested environment with accessibility, land and lot size constraints. Precincts are emerging across the municipality which have retained a core manufacturing role such as areas around Cremorne, Burnley, and Richmond. Manufacturing in the northern suburbs of Yarra such as in Fitzroy is fragmenting with residential development encroachment, congestion, poor access, and lack of critical mass affecting manufacturing employment in these areas. Again, those precincts which can operate within an increasingly congested inner region are surviving.
Figure 15: % of Total Manufacturing Jobs Accessible Within 30 Minutes Drive, Yarra City Focus Map, 2011
Figure 16 shows the percentage of total logistics jobs accessible within thirty minutes drive for the Melbourne SD in 2011. This map shows the increasing role being played by suburban locations as a home for the logistics industry, particularly in the western region. This industry is suburbanising to
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locations which offer cheaper land, access to high speed road links and access to major trading gateways such as the Port of Melbourne and Melbourne Airport. Logistics within the inner region still retains a strong presence but will increasingly specialise into small scale logistics which can operate in a congested environment with growing residential intensification.
Figure 16: % of Total Logistics Jobs Accessible Within 30 Minutes Drive, Melbourne SD, 2011
Figure 17 shows a focus map for the logistics industry in Yarra. Yarra still accounts for a significant share of Melbournes logistics industry, and in comparison to manufacturing, is more evenly distributed across the municipality. This reflects the diversity of the logistics industry which can
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consist of small to large operators and the ability of this industry to survive within a congested inner region in close proximity to residential uses. Areas around the Yarra River to the north and north-east have lower access to logistics jobs reflecting accessibility and land constraints in this area. Logistics employment declines significantly along the Eastern Freeway corridor as residential and open space uses dominate the local land use profile.
Figure 17: % of Total Logistics Jobs Accessible Within 30 Minutes Drive, Yarra City Focus Map, 2011
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2.6.5
Gross Value Added by Industry
Figure 18 shows the proportional contribution of each industry to Gross Value Added (GVA) for the Yarra SLAs, LGA, the inner Melbourne region and the Melbourne SD. The total GVA for the Yarra (C) North SLA was 3.0 million whilst the contribution from the Yarra (C) - Richmond SLA was 2.7 million. In all, the Yarra municipality had a GVA of 5.7 million in 2008.
Figure 18: Share of Gross Value Added, 2008, City of Yarra SLAs and LGA, Inner Melbourne, Melbourne SD
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
Communication Services
Cultural and Recreational Services
Mining
Construction
Property and Business Services
Manufacturing
Accommodation, Cafes and Restaurants
Electricity, Gas and Water Supply
Yarra (C) - North
Yarra (C) - Richmond
Yarra (C)
Inner Melbourne
Melbourne SD
In the Yarra (C) North SLA, the greatest contribution was from property and business services, followed by health and community services, manufacturing, and wholesale trade. In the Yarra (C) Richmond SLA, the greatest contribution was from Property and Business Services followed by Finance and Insurance, Health and Community Services, Wholesale Trade and Cultural and Recreational Services. In total, the greatest contribution to the Yarra municipal GVA was Property and Business Services, Finance and Insurance Services, Health and Community Services, Wholesale Trade and Manufacturing.
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Government Administration and Defence
Agriculture, Forestry and Fishing
Health and Community Services
Personal and Other Services
Finance and Insurance
Wholesale Trade
Retail Trade
Transport and Storage
Education
The Yarra (C) Richmond SLA provides a greater share of Property and Business Services, Finance and Insurance, Retail Trade, and Cultural and Recreational Services output than the Yarra (C) North SLA. The Yarra (C) North SLA however, provides a greater contribution to Manufacturing, Construction, Wholesale Trade, and Education industry output. This profile is generally consistent with the inner region economy where Property and Business Services and Finance and Insurance make the most substantial contribution to GVA, although the contribution of Health and Community Services to inner region output is much smaller than in Yarra. Yarra and the inner region are playing less of a role in metropolitan Manufacturing and Transport and Storage output. This is consistent with the broader patterns of these industries which are in decline in the inner region but are growing in output via other regions in Melbourne.
2.6.6
Export and Local Sectors
Export and local sectors within the Yarra economy can be identified through the use of location quotient (LQ) analysis. The LQ is derived by comparing the proportion of jobs by industry in Yarra City with the proportion of jobs by industry in Victoria. A score over 1.0 indicates an overrepresentation of jobs in that sector, thus indicating that a quantum of those jobs is generated by external export (non local) demand. A score that is less than 1.0 implies that it is an import sector. This has also been done by output for each industry. Figure 19 shows the location quotient index by employment for 2006 and Figure 20 shows the trend between 2001 and 2006 for the 1 Digit ANZSIC categories. There were a number of industries that recorded significant location quotient scores in 2006. These included: Information Media and Telecommunications (2.0); Wholesale Trade (1.6); Professional, Scientific and Technical Services (1.6); Financial and Insurance Services (1.6); Health Care and Social Assistance (1.6); and Rental, Hiring and Real Estate Services (1.2).
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Figure 19: Location Quotient of Industries, 1 Digit ANZSIC, Yarra City compared to Victoria, 2006
2.5
2.0
1.5
1.0
0.5
0.0
Transport, Postal and Warehousing
LQ
Source: ABS Census 2001, 2006 JTW, SGS Economics and Planning
The LQ index for Yarra City has changed significantly since 2001. Yarra has consolidated its position in Professional, Scientific and Technical Services, Information Media and Telecommunications and Rental, Hiring and Real Estate Services. The LQ for Health Care and Social Assistance has marginally declined from 2001 (1.7) to 2006 (1.6). The LQ for Wholesale Trade also declined from 2001 (1.7) to 2006 (1.6). These industries nonetheless maintained their export orientation over the 5 year period. The location quotient indexes for Finance and Insurance Services and Administrative and Support Services exceeded 1.0 in 2006 making these industries export sectors. The strengths of the Yarra economy are in a range of sectors where Yarra serves a regional catchment.
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Manufacturing
Wholesale Trade
Other Services
Mining
Construction
Retail Trade
Figure 20: Location Quotient of Industries, 1 Digit ANZSIC, Yarra City Compared to Victoria, 2001 & 2006
2.5 2.0 1.5 1.0 0.5 0.0
Manufacturing
Transport, Postal and Warehousing
2001
2006
Source: ABS Census 2001, 2006 JTW, SGS Economics and Planning
2.6.7
Industry Specialisation and Growth
Figure 21 is a growth share matrix for the City of Yarra in 2006 using the 2006 1-digit ANZSIC categories. The chart shows the location quotient index for each industry (compared with Victoria) together with the annual average change in employment by industry. The industry growth share matrix is divided into quadrants, each quadrant defining the stage of lifecycle for the industry. Stages in the lifecycle are illustrated in the growth share matrix as follows: Expanding Stage: If in the top right quadrant (high average annual growth/high specialisation). Emerging Stage: If in the lower right quadrant (high average annual growth/lower concentration), this implies an emerging, growing industry that may need some assistance to mature. Transforming Stage: If in the upper left quadrant (lower average annual growth/above average concentration), this implies the industry is at risk (overall) and needing to increase innovation and productivity to compete with other regions.
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Wholesale Trade
Other Services
Mining
Construction
Retail Trade
Seed or Transitioning Stage: If in the lower left quadrant (lower average annual growth/lower concentration), this implies that the industry is not growing in Yarra. This suggests that the industry will need to innovate or specialise to retain competitiveness.
Figure 21: Growth Share Matrix, City of Yarra, By Employment (LQ with Victoria), 2006
Source: SGS Economics and Planning, ABS Census, 2006 Journey to Work
Those industries in the top right quadrant include Professional, Scientific and Technical Services, Health Care and Social Assistance, Financial and Insurance Services, Rental, Hiring and Real Estate Services, Accommodation and Food Services, Other Services, Administrative and Support Services, Retail Trade and Arts and Recreation Services. Industries in the bottom right quadrant exhibit low specialisation but strong annual average jobs growth. Industries in this quadrant include Electricity, Gas, Water, and Waste Services, Public Administration and Safety, Construction and Mining. Agriculture, Forestry and Fishing, Manufacturing, Transport, Postal and Warehousing, Education and Training are located in the bottom left quadrant which indicates low specialisation and a declining trend in employment since 2001. These industries should be repositioned through value adding to ensure that Yarra retains these specialisations but can reverse current employment trends. Information Media and Telecommunications and Wholesale Trade are located in top left quadrant indicating high specialisation but declining growth.
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2.6.8
Employment Projections
SGS total employment estimates are disaggregated by Australian and New Zealand Standard Industrial Classification (ANZSIC 06 classification). Total employment in the City of Yarra was at approximately 52,800 in 1996, and increased to 57,000 in 2006. Almost 20% of total employment in 2006 was accounted for by workers in Professional, Scientific and Technical Services (12.2%), and Financial and Insurance Services (6.8%). SGS employment forecasts indicate that total employment will continue to grow to approximately 71,300 by 2016 and 86,000 by 2026. Existing large employing industries are expected to consolidate their share by then with Retail Trade commanding 10% of total employment share. Professional, Scientific and Technical Services and Financial and Insurance Services are also expected to consolidate their position at 15.2% and 12.2%, respectively. The estimated employment projections for Yarra are shown below in Table 6. The Melbourne employment projections were derived via use of the TRYM (Treasury Macroeconomic Model) and data obtained from a variety of sources. Information from the Australian Bureau of Statistics, Australian Bureau of Agricultural & Resource Economics and the Joint Economic Forecasting Group was used by SGS to develop a set of industry projections for the Australian economy.
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Table 6: Employment Projections by Industry, Yarra, 2006 26

Sector Agriculture, Forestry and Fishing Mining Manufacturing Electricity, Gas, Water and Waste Services Construction Wholesale Trade Retail Trade Accommodation and Food Services Transport Postal and Warehousing Information Media and Telecommunications Financial and Insurance Services Rental, Hiring and Real Estate Services Professional, Scientific and Technical Services Administrative and Support Services Public Administration and Safety Education and Training Health Care and Social Assistance Arts and Recreation Services Other Services Total Source: SGS Economics and Planning 1996 50 10 10,130 470 1,620 6,270 4,840 3,110 1,180 2,490 1,080 590 4,400 1,550 1,280 2,020 8,340 660 2,710 52,800 2001 70 10 7,550 420 1,800 5,110 5,870 3,610 1,280 2,700 1,850 950 6,370 1,760 1,190 2,480 8,990 750 2,080 54,840 2006 40 10 4,930 420 2,080 4,730 6,760 3,730 1,140 2,600 3,850 1,000 6,930 2,130 1,430 2,430 9,630 910 2,280 57,030 % p.a. (1996 - 06) -2.2% 0.0% -6.9% -1.1% 2.5% -2.8% 3.4% 1.8% -0.3% 0.4% 13.6% 5.4% 4.6% 3.2% 1.1% 1.9% 1.4% 3.3% -1.7% 0.8% 2011 30 20 4,470 490 2,490 4,640 7,200 4,420 1,250 2,250 5,120 1,180 8,270 2,120 1,470 3,040 11,890 1,260 2,590 64,200 2016 40 20 3,800 540 2,750 4,400 7,740 5,400 1,110 1,990 6,240 1,240 9,550 2,180 1,590 3,370 15,190 1,430 2,810 71,390 2021 40 20 3,090 530 2,920 3,860 8,060 6,080 840 2,190 7,800 1,300 11,030 2,210 1,700 3,570 19,350 1,600 3,090 79,280 2026 40 20 2,020 490 3,090 3,050 8,340 6,850 680 2,400 9,700 1,360 12,060 2,210 1,820 3,690 23,050 1,760 3,380 86,010 % p.a. (2011 - 26) 1.9% 0.0% -5.2% 0.0% 1.4% -2.8% 1.0% 3.0% -4.0% 0.4% 4.4% 1.0% 2.5% 0.3% 1.4% 1.3% 4.5% 2.3% 1.8% 2.0%
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2.6.9
Land Projected Demand
SGS has identified core industrial jobs and land provided in the municipality at 2010 and derived estimates for industrial land using the observed ratio between jobs and land, keeping this ratio constant over time. It is acknowledged that the employment to land ratio may change over time as businesses, industrial practices and densities evolve. To capture this, sensitivity analysis has been undertaken where the ratio between employment and land observed at 2010 is altered upwards and downwards by a factor of 20%. Consequently, a range is provided within which the projected demand is expected to lie. The land area data has been derived from the Yarra Planning Scheme and GIS calculations. The 2010 employment projections are derived by a direct interpolation of jobs in 2006 (available from the census) and SGS employment projections for 2011. The process of converting employment projections into land projections (for core industry) is as follows: Core industries are defined to include Manufacturing, Electricity, Gas, Water and Waste Services, Wholesale Trade and Transport Postal and Warehousing. The ratio of employment in these industries at 2010 to the core industrial land available (IN1Z and IN3Z) at 2010 gives the employment to land utilization ratio. Assuming this land utilization ratio remains constant, base case land requirements to 2026 are determined by taking the ratio of projected core industrial employment to the land utilization ratio. Two additional scenarios are developed which allow for the land utilization ratio to be changed by 20% on either side of the base case. The land requirements (in Ha) are shown below:
Table 7: Estimated Industrial Land Demand 2006 2026

2010 (Existing) Base Case Upper case Lower case 82.4 2016 74.3 92.9 61.9 2026 47.1 58.8 39.2 Change 2010 - 26 -35.3 -23.6 -43.2 % p.a. -3.4% -2.1% -4.5%
Source: Yarra Planning Scheme, SGS Economics and Planning
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Figure 22: Core Industrial Land Demand

100.0
Base Case
Upper case
Lower case
75.0
50.0
25.0
2010 (Existing)
2016
2026
The process of converting employment projections into land projections (for business) is as follows: Assume all industry sectors excluding the core industrial sectors as business uses. The ratio of employment in these industries at 2010 to the core business land available (B1Z, B2Z, B3Z, B4Z, B5Z) at 2010 gives the employment to land utilization ratio. Assuming this land utilization ratio remains constant, base case land requirements to 2026 are determined by taking the ratio of projected core industrial employment to the land utilization ratio. Two additional scenarios are developed which allow for the land utilization ratio to be changed by 20% on either side of the base case. The projected land demand (in Ha) is shown below:
Table 8: Estimated Land Demand (including Business) 2006 2026

2010 (Existing) Base Case (B1Z) Base Case (B2Z B5Z) Base Case (Total) Upper case Lower case Source: SGS Economics and Planning 95 140.6 235.9 280.0 350.0 233.3 362.9 453.6 302.4 127.1 217.8 66.6 2.7% 4.2% 1.6% 2016 2026 Change 2010 - 26 % p.a.
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Figure 23: Business Land Demand
600.0
Base Case Lower case

450.0
Hectares
Upper case
300.0
150.0
2010 (Existing)
2016
2026
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SUPPLY SIDE CONDITIONS
This section describes the current floorspace and land supply conditions across the relevant zones in Yarra and assesses the property market conditions in relation to business and industrial land in Yarra. The Urban Development Program provides a 2009 stocktake for all industrial and Business 3 Zone land and this has been used to provide a regional context. All local data for Yarra has been sourced from Councils rates database.
3.1
Regional Context
An audit of occupied and vacant B3Z and IND1Z & IND3Z land as of 2009 and a map of these areas is provided in the following two pages. A regional context map derived from the Urban Development Program is provided on page 46 which shows the location of all industrial zoned land in the region and recent developments. Key findings relating to Yarra from the audit are as follows: There is minimal B3Z vacant land supply in the region with the Melbourne LGA accounting for the greatest amount of B3Z land supply. In all, there were 12.8 ha of B3Z land supply in 2009 across the region. IND1Z vacant land supply is minimal across the region (23 ha) with Moreland (7.3 ha), Melbourne (6.9 ha) and Darebin (5.2 ha) accounting for the greatest amounts of land supply in this zone. IND3Z vacant land supply is minimal across the region (21 ha) with Darebin (13.3 ha) and Banyule (3.5 ha) accounting for the greatest amounts of land supply in this zone. In 2009, Yarra had a total B3Z land stock of 73.8 ha comprising 72.4 ha of occupied land and 1.4 ha of vacant land supply. Yarras total B3Z land stock was 31% of all B3Z land in the region. Yarra had 49.6 ha of IND1Z land comprising 49.2 ha of occupied land and 0.3 ha of vacant IND1Z land. Yarras total IND1Z land stock was 6.5% of all IND1Z land in the region. Yarra had 16.3 ha of IND3Z land comprising 15.8 ha of occupied land and 0.6 ha of vacant supply. Yarras total IND3Z land stock was 4.4% of all IND3Z land in the region.
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Figure 24: Business and Industrial Land, Yarra, 2009
Source: DPCD; Urban Development Program
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Table 9: Industrial 1 & 3 and Business 3 Zone Land, Yarra and Surrounding Municipalities
B3Z Supply (Ha) Melbourne Stonnington Port Phillip Yarra Banyule Boroondara Darebin Moreland Region Total MSD 10.8 0.0 0.2 1.4 0.0 0.0 0.0 0.4 12.8 586.0 Unavailable (Ha) 70.4 0.0 32.5 72.4 12.2 18.6 3.1 16.6 225.8 1,253.8 Total (ha) 81.2 0.0 32.7 73.8 12.2 18.6 3.1 17.0 238.6 1,839.8 % of Region 34.0% 0.0% 13.7% 30.9% 5.1% 7.8% 1.3% 7.1% 100.0% Supply (Ha) 6.9 0.0 3.1 0.3 0.2 0.0 5.2 7.3 23.0 1,968.5 IN1Z Unavailable (Ha) 250.4 0.0 124.0 49.2 51.3 0.0 107.9 160.3 743.2 7,394.2 Total (ha) 257.3 0.0 127.1 49.6 51.5 0.0 113.1 167.6 766.2 9,362.6 % of Region 33.6% 0.0% 16.6% 6.5% 6.7% 0.0% 14.8% 21.9% 100.0% Supply (Ha) 0.6 0.0 0.0 0.6 3.5 0.0 13.3 3.2 21.2 1,127.5 IN3Z Unavailable (Ha) 12.9 3.8 4.2 15.8 57.1 0.0 171.4 82.9 348.0 1,803.8 Total (ha) 13.5 3.8 4.2 16.3 60.6 0.0 184.7 86.1 369.2 2,931.2 % of Region 3.6% 1.0% 1.1% 4.4% 16.4% 0.0% 50.0% 23.3% 100.0%
Source: DPCD, Urban Development Program
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Figure 25: Regional Context Map, Yarra and Surrounding Municipalities
Source: DPCD, Urban Development Program
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M el b o u r n e s I n du s tr i al Nod es Melbournes industrial structure is generally concentrated into several major nodes. Three nodes are located in the western region (West node, Melton node and Airport node), one in the north (North node), one in the south (South node) and one in the outer south-east (Pakenham node). These areas are recognised as hubs of regional and metropolitan significance which in turn reflect the changing spatial pattern of industrial development across Melbourne. This analysis has been included to provide a context to Yarras business and industrial areas in terms of land area and occupancy. The Urban Development Program provides land area data for each industrial node for 2009. For the purpose of the results, Yarra is counted within the Other Areas in Metropolitan Melbourne category. The data is provided overleaf. Key findings are as follows: In 2009, the industrial nodes provided 11,100 ha of land comprising 6,700 ha of occupied land and 4,400 ha of vacant land supply. This represented 46% of all industrial land in the metropolitan area at the time. The median take-up rate of land each year since 2004 was 221 ha per year. Industrial land in Other Areas in Metropolitan Melbourne totalled 12,850 ha comprising 10,400 ha of occupied land and 2,450 ha of vacant land supply. The median take-up rate of land each year since 2004 was 61 ha per year. Total land area take up in Melbourne between 2004 and 2009 was 1,400 ha of which the industrial nodes accounted for 1,150 ha and 265 ha in other areas of Melbourne. This represents a share of 81.3% in the industrial nodes and 18.7% in other areas of Melbourne over that time. This shows an overall shift of industrial development to the outer suburbs with take up rates in the industrial nodes being three times greater than in the other areas of Melbourne.
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Figure 26: Melbournes Industrial Nodes
Source: Urban Development Program
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Table 10: Industrial Land Supply, Melbournes Industrial Zones, 2009
Occupied (Hectares) West Node Melton Node Airport Node North Node South Node Pakenham Node Total of Above Nodes Other Areas in Metropolitan Melbourne 2,407.1 182.7 400.8 1,568.5 2,054.5 91.7 6,705.2 10,389.5
Vacant (Hectares) 1,400.1 276.1 250.0 1,226.6 975.5 271.7 4,399.9 2,455.2 36.8% 60.2% 38.4% 43.9% 32.2% 74.8% 39.6% 19.1% 28.6%
Total Hectares 3,807.1 458.8 650.9 2,795.1 3,029.9 363.3 11,105.1 12,844.8 23,949.9
2004 to 2005 108.61 5.05 8.76 43.93 55.90 -0.67 221.58 71.30 292.88
2005 to 2006 91.79 3.24 12.12 72.61 52.90 9.74 242.39 65.00 307.39
2006 to 2007 83.05 -6.38 13.77 45.08 79.06 2.36 216.95 35.36 252.31
2007 to 2008 109.77 2.77 41.86 55.43 65.57 2.04 277.44 61.27 338.71
2008 to 2009 74.70 1.57 18.81 22.32 63.25 12.70 193.35 31.54 224.89
Average 20042009 93.58 1.25 19.07 47.87 63.34 5.23 230.34 52.90 283.24
Median 20042009 91.79 2.77 13.77 45.08 63.25 2.36 221.58 61.27 292.88
Total 20042009 467.92 6.25 95.33 239.37 316.68 26.16 1,151.71 264.48 1,416.18
% of Metro Melb 33.0% 0.4% 6.7% 16.9% 22.4% 1.8% 81.3% 18.7% 100.0%
Total Metropolitan Melbourne 17,094.8 6,855.1 Source: DPCD, Urban Development Program, 2009
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3.2
Floorspace and Land Area by Zone
Yarra had approximately 1.5million square metres of business and industrial floorspace in 2010 covering approximately 223 ha of business and industrial land. Total business floorspace was around 1million square metres with industrial floorspace comprising approximately 480,000 square metres. Yarra had a total of approximately 141 ha of business zoned land and 82 ha of industrial zoned land. The B3Z accounted for the greatest share of business floorspace (64%/678,500 square metres), followed by the B2Z (18%/194,250 sqm). The IND1Z accounted for the greatest share of all industrial floorspace in Yarra (81%/399,500 sqm), with the IND3Z accounting for 19% of all industrial floorspace (89,230 sqm). The B3Z accounted for the highest share of business zone land (62%/87.0 ha) followed by the B2Z (20%/28.6 ha). Development within the B3Z had the highest site coverage (expressed as plot ratio) (78%) followed by the B4Z (75%). This is expected given the purpose of the zone which supports mixed office and manufacturing. Some showrooms and related uses also have a high site coverage which could influence the B4Z having a high site coverage.
Table 11: Total Floorspace and Land Area by Zone, City of Yarra, 2010
Zone B2Z B3Z B4Z B5Z Sub-Total BZ IN1Z IN3Z Sub-Total INDZ Grand Total Floorspace (Square metres) 194,252 678,517 86,924 98,876 1,058,569 390,596 89,237 479,833 1,538,402 % Floorspace Share 18% 64% 8% 9% 100% 81% 19% 100% Land Area (Ha) 28.6 87.0 11.5 13.5 140.6 62.5 19.9 82.4 223.0 % Land Share 20% 62% 8% 10% 100% 76% 24% 100% Plot Ratio* 68% 78% 75% 73% 75% 62% 45% 58% 69%
Source: Land Areas: Yarra Planning Scheme GIS information; Floorspace: Yarra Rates Database Note: There may be discrepancies between the above data and that of the Urban Development Program due to differences in data collection methodologies * Plot ratio is ratio of floorspace to site area
The B2Z is the core commercial office zone. This zone could expect to have high site coverage within the inner region given land efficiencies which office development can realise with basement parking or consolidated parking offsite. In 2010, the plot ratio was around 68% which suggests some variation across office development in Yarra. Offices within activity centres could be expected to have a higher plot ratio whilst plot ratios could be less in business park settings across Yarra. The Botanicca Corporate Park has not reached full development capacity.
P. 5
The industrial zones typically have lower site coverage, with plot ratios in the IND1 and 3 Zones around 62% and 45%, respectively.
3.3
as follows:
Land Use Mix by Zone
The following charts show the top 10 land uses by total floorspace for each zone. Key findings are
Business 2 Zone: The top five land uses are office, showroom, factory, flat, and consulting rooms. These uses are generally in accordance with the purpose of the zone aside from dwelling and factory. Business 3 Zone: The top five land uses are office, office/warehouse, factory, showroom and dwelling. These uses are generally in accordance with the purpose of the zone aside from dwelling. Offices and a combination of office/warehouse could be expected to locate in the Business 3 Zone. Business 4 Zone: The top five land uses are showroom, factory, office, showroom/warehouse, and factory/workshop. These uses are generally in accordance with the purpose of the zone aside from dwelling. This zone is principally for bulky goods retailing and showroom type uses which may include a warehouse or manufacturing components. Business 5 Zone: The top five land uses are flat, office, warehouse apartment, factory/office and dwelling townhouse. These uses are generally in accordance with the purpose of the zone aside from dwelling townhouse. Industrial 1 Zone: The top five land uses are office/warehouse, factory, office, warehouse, and factory/office. These uses are generally in accordance with the purpose of the zone. Industrial 3 Zone: The top five land uses are office/warehouse, factory/workshop, factory, factory/office and office. These uses are generally in accordance with the purpose of the zone aside.
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Yarra Council. Draft Business and Industrial Land Strategy. Background Report Part 2

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Yarra Council. Draft Business and Industrial Land Strategy. Background Report Part 2

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Yarra Business and Industrial Land Strategy / City of Yarra

Source: SGS Economics and Planning

Background Report endorsed by Council for public release 18-10-11.docx

Draft for public consultation

Yarra Business and Industrial Land Strategy / City of Yarra

Employm ent by Industry (W orkers)

Figure 9: Employment by Industry, Yarra LGA, 1996 2006

Accommodation and Food Services

Rental, Hiring and Real Estate Services

Professional, Scientific and Technical Services

Transport Postal and Warehousing

Administrative and Support Services

Source: ABS JTW, SGS Economics and Planning

Background Report endorsed by Council for public release 18-10-11.docx

Health Care and Social Assistance

Agriculture, Foresty and Fishing

Electricity, Gas, Water and Waste Services

Financial and Insurance Services

Public Administration and Safety

Arts and Recreation Services

Information Media and Telecommunications

Education and Training

Draft for public consultation

Yarra Business and Industrial Land Strategy / City of Yarra

Background Report endorsed by Council for public release 18-10-11.docx

-20.0% 10.0% -5.0%

Agriculture, Foresty and Fishing

Yarra (C) - North

Electricity, Gas, Water and Waste Services

Source: ABS JTW, SGS Economics and Planning

Yarra (C) - Richmond

Background Report endorsed by Council for public release 18-10-11.docx

Transport Postal and Warehousing

Draft for public consultation

Rental, Hiring and Real Estate Services

Inner Melbourne Melbourne SD

Administrative and Support Services

Health Care and Social Assistance

Yarra Business and Industrial Land Strategy / City of Yarra

Draft for public consultation

Yarra Business and Industrial Land Strategy / City of Yarra

Source: SGS Economics and Planning

Background Report endorsed by Council for public release 18-10-11.docx

Draft for public consultation

Yarra Business and Industrial Land Strategy / City of Yarra

Source: SGS Economics and Planning

Background Report endorsed by Council for public release 18-10-11.docx

Draft for public consultation

Yarra Business and Industrial Land Strategy / City of Yarra

Source: SGS Economics and Planning

Background Report endorsed by Council for public release 18-10-11.docx

Draft for public consultation

Yarra Business and Industrial Land Strategy / City of Yarra

Source: SGS Economics and Planning

Background Report endorsed by Council for public release 18-10-11.docx

Draft for public consultation

Yarra Business and Industrial Land Strategy / City of Yarra

Source: SGS Economics and Planning

Background Report endorsed by Council for public release 18-10-11.docx

Draft for public consultation

Yarra Business and Industrial Land Strategy / City of Yarra

Source: SGS Economics and Planning

Background Report endorsed by Council for public release 18-10-11.docx