Luxury Kingsgrove car dealership set to fetch $16m
An industrial warehouse home to a luxury car wholesaler has come up for sale as the industrial market in southern Sydney reaches new highs.
Occupying seven titles across 4850sqm in Kingsgrove, 14-26 Commercial Road is anticipated to sell for a whopping $16m less than three years after it sold for $13,682,370 in late 2018.
A sale price at the $16m mark, would mean the vendor would have earned close to $3000 for every day of ownership or close to $90,000 for each month. The property is just 100m from Kingsgrove train station, with a sizeable frontage to Commercial Road.
It has come up for sale as the industrial market in South Sydney surges, led by creative sectors at the smaller end of the market, while fast moving transport occupiers are driving tenant demand at the larger end of the market.
Colliers International’s Trent Gallagher, who is selling the property with Ben Steege of LJH Commercial, said the Commercial Road site was well positioned to take advantage of a resurgent market.
“The industrial market is the strongest we have ever seen it with record prices being paid for properties daily,” he said.
“The leasing market is also very strong with a lot of businesses doing very well in the current climate.”
Research by Colliers has found that despite broader economic headwinds, both occupier and investor demand for industrial space in Sydney remains strong, with online retail sales growing by 60 per cent across Australia over the 12 months to January 2021.
Given South Sydney’s proximity to the CBD, Port Botany and the surrounding population, the area has benefited from occupiers seeking last mile logistics space in a bid to cut delivery times of their products.
The building has above 9000sqm of internal space across two floors. The complex includes a loading dock, 3879sqm showroom, refurbished interiors and a mezzanine space.
Tenants include sign maker Art and Soul and a luxury car wholesaler.