Try to find a hotter market than Western Sydney’s current industrial market, and you could be searching for some time.
Commercial and industrial prospects in the city’s west are increasingly tight, with a lack of stock meaning any opportunities are being grabbed quickly and with both hands.
But savvy investors and developers are remaining active in their pursuit of the excellent returns on offer.
GJS Property director Gordon Fallance says that while a lack of stock is playing into sellers’ hands, there is still considerable activity within certain areas of the market.
Among recent deals are a number of large leasing negotiations, including WesTrac’s relocation from its prime facility in Granville, to Crossroads at Casula on the M7 freeway – a move aimed at giving the group immediate access to housing, airport and infrastructure projects in the region.
Print and marketing communications company IVE Group has also seized an opportunity to expand, establishing a new state-of-the-art printing facility in Huntingwood which is circa 21,000sqm once it has been fully refurbished.
And smaller developers are also reemerging into the market in response to growing demand for strata industrial units, which are being aggressively pursued by investors and small owner occupiers.
Demand is so strong that Mr Fallance says other groups are prepared to speculatively develop properties, comfortable in the knowledge that there will be significant demand for the end product, whether that be for purchase or lease.
“Institutional owners are considering speculatively developing to cater for some of the demand that’s coming onto the market,” he says.
Among the developers currently active in the market are those with substantial land banks such as Goodman, GPT, Charter Hall, Dexus and Fraser’s.
“These institutions are selectively speculatively developing buildings successfully - and holding these new buildings for their respective funds,” Mr Fallance says.
Mr Fallance says demand remains strong in most leasing markets, from smaller strata units to super warehouses of 10,000sqm and above.
“The same can be said for industrial investments from $500,000 to $100 million. Demand is strong, competition is deep and any genuine opportunities are usually selling above expectations.”
To discuss potential opportunities in Western Sydney’s industrial market, contact GJS Property on 0412 999 091.