Region. Lack of industrial supply affects market

The lack of supply of prime grade buildings above 5000 square metres for lease in Western Sydney is driving major tenants to commit to long rental terms which have not been seen in the market for 10 years, according to Colliers International. Gavin Bishop, Colliers International national director of industrial, said rather than committing to a usual three to five years, recent deals have seen tenants sign leases for up to a decade for the initial term. “The types of businesses that have been committing to these buildings are manufacturing, warehouse and distribution, transport groups and government agencies,” he said.