Prime industrial rents surged by double digits in most capital city markets in 2021 as tenants were pushed to compete for the small amount of available space on the market. According to JLL, the highest prime effective rental increases occurred in Perth (up 14.6 per cent), Melbourne (14 per cent) and Adelaide (13 per cent) over 2021.

In the secondary market, effective rents rose 16 per cent in Brisbane and Melbourne and 10 per cent in Sydney. Around the country, a record 4.4 million square metres of warehouse space was taken up in 2021. This is a 52 per cent rise on the 2.9 million square metres taken up in 2020. The data from JLL shows that prime industrial rents increased by more than 10 per cent in most capital city markets, fuelled by the acceleration of online retailing and supply chain disruptions.

JLL believe the completion of 1.3 million square metres of new logistics facilities in the next six months will ease pressure on companies needing warehouse space and create a more normalised rental market. Two-thirds of this new supply is already accounted for in leasing pre-commitments. Fourth-quarter 2021 figures from JLL show 877,200 square metres of space was leased over the last three months of the year. The majority of this activity was in Melbourne (39 per cent) and Sydney (33 per cent).

Last year, JLL says 1.47 million square metres of new space was developed nationally, which was in line with the 10-year annual average. The full-year gross take-up total (4.4 million square metres) was 82 per cent higher than the long-term annual average. JLL still expects above-average growth in the major markets in 2022 with many owner-occupiers requiring immediate access to more space.

For any business, the most important element is arguably capital. You need money on hand to carry on with day-to-day operations as well as continue to see it grow.

If you’re short of capital, it is possible to reduce your costs, however, with it often comes a lack of growth. The other option is to look at ways you can inject more capital into the business. For most business owners the most effective way to do that is with a business loan.

For SMEs, one of the most popular options is an unsecured business loan, which is generally between $5,000 and $300,000 and would be repaid within a year. They also give you a degree of flexibility as there are no restrictions on how you can use the cash injection. There are other reasons why it might be worth looking at an unsecured business loan.

Availability

One of the best things about an unsecured business loan is that they are readily available. In recent years, more and more lenders and online platforms have popped up, making them available to a wide array of small and medium businesses. However, it’s always worth talking to a finance broker as they will have the best understanding of what your options might look like and have experience in this area.

No Collateral

When you take out a secured loan, you are using an asset as collateral. If you’re in a position where you’re unable to pay back the loan, the lender is able to claim the asset that you put up for collateral. If you don’t have the assets to put up as collateral, then an unsecured business loan might be a more effective option. However, it is important to note that the lack of collateral will likely lead to higher interest rates, and risk to your business.

Fixed Terms

Typically, an unsecured business loan has very clearly defined terms which make repayments relatively easy to manage. Make sure you know the terms of the loan before accepting and go over them in detail with your finance broker.