Vaughan Constructions have noted one of the few bright lights to emerge from the global financial crisis has been the dramatic drop in industrial development prices.
As construction demands have fallen across the board due to the financial low, industrial development prices have dropped by around 10% for an average 10,000sqm design and construction project on a well-located site. Forward thinking businesses can now build a brand new office or warehouse for around 10% or $500,000 less than it would have cost 12-18 months ago.
Vaughan Constructions' customers seem to be taking advantage of this window of opportunity, with the company reporting, in the last month, four land sales and seven new building contracts totalling $57.3 million.
With government stimulus packages coming on line, in particular in education and infrastructure, industrial construction prices are definitely at the bottom of the market right now and can be expected to start to rise again in mid 2010, so now is an ideal time to lock in any projects, while industrial development prices are low.
Vaughan Constructions also have access to the finance that allows companies, that may otherwise be constrained by the current climate or global restrictions, to make a long term lease or purchase commitment, to take advantage of the current opportunities.
There is a major upside in this market for well-off businesses to cut property overheads and gain from the efficiency of new purpose built premises.