Road to Sydney’s south-west paved with industrial gold
Sydney’s south-west is quickly becoming the city’s industrial epicentre, with a wave of new development set to push it past the outer west.
New research shows Sydney’s industrial landscape is in the midst of a dramatic change, with 850,000sqm of property to be developed between 2017 and 2027.
CBRE agents say stock shortages in other key locations and residential conversation activity in the central west would push the south-west’s claims as Sydney’s new industrial heartland.
As industrial vacancy gets tighter in south Sydney, the central west and south west precincts emerge as clear alternatives
“The gentrification of industrial estates such as south Sydney and the central west is an inevitable evolution for major cities, and one in which Sydney is currently experiencing,” CBRE senior research analyst Alexander Tan says.
According to CBRE, about 210,000sqm of south Sydney industrial stock could be converted over the next five years, tightening the region’s industrial market even further.
The planned Edmondson Park precinct will feature 45,000sqm of retail and commercial space
“These withdrawals, followed by the diversification of commercial uses for industrial land, are reflective of a diminishing industrial presence in south Sydney. As industrial vacancy gets tighter in south Sydney, the central west and south west precincts emerge as clear alternatives, in terms of proximity,” Tan says.
The latest research comes as both residential and commercial developers invest heavily in the region.
WestConnex will reduce travel time by 25 minutes, which is likely to alleviate the need for tenants to be located close to Sydney Airport
Frasers Property Australia, formerly known as Australand, last month paid $100 million for the right to develop 45,000sqm of retail and commercial space, as well as 1000 apartments and houses, at Edmondson Park.
CBRE NSW industrial director Michael O’Neill says the south-west’s ease of accessibility, as well as the development boom, would see it become the city’s dominant industrial force.
“WestConnex will reduce travel time by 25 minutes, which is likely to alleviate the need for tenants to be located close to Sydney Airport, Port Botany and the Sydney CBD, encouraging more tenant moves to the South West as a result,” O’Neill says.
“Developers like Stockland are poised to take advantage of growth within the region with DA-approved plans for a 28,800 square metre facility at Stage 1, 35 Stennett Road Ingleburn, which can be delivered within seven months.”
