Region. Speculative projects

A CB Richard Ellis review highlights that close to 29,000 square metres of Western Sydney industrial space has been leased in two separate transactions which are expected to bring forward speculative development projects. The larger of the recent lease deals involves specialist furniture importer, Matt Blatt, which has relocated its Australian headquarters from Marrickville to Regents Park Estate after striking a 14,567 square metre lease agreement. Mail and logistics services business, Quantium Solutions, at Riverwood, has committed to five-year lease at Smithfield. CBRE’s Shaun Timbrell said the deals highlighted a growing trend for South Sydney tenants to make the shift west.

Erskine Park. Demand for industrial space

DEXUS is moving to capitalise on increased tenant demand for industrial space with the construction of a 21,000-square-metre office warehouse facility on a newly acquired site at Erskine Park. Construction is expected to commence in the coming weeks. CBRE’s NSW industrial director, Jason Edge, said there was over 150,000 square metres of current enquiry for facilities in the Erskine Park/Eastern Creek precinct

Region. Resilient industrial market

The Central West has emerged as the most resilient industrial market in Sydney. Over the past three months, CBRE has leased over 15,000 square metres of industrial space in business parks throughout the Central West, which includes Homebush, Lidcombe, Auburn, Silverwater, Rydalmere and Chullora. CBRE Parramatta MD, Cameron Grier, said a scarcity of vacant industrial sites had underpinned land values in the area, even during the worst of the GFC, when land prices across Western Sydney had fallen on average between 25 per cent and 40 per cent.

Region. Industrial space subdued

New supply of industrial space is expected to be subdued over the next two years according to CBRE’s Sydney Industrial MarketView report, with just over 80 per cent of this construction expected to take place in the outer west. A average of 485,000 square metres per annum is now expected to be completed during 2010/11 which is 37 per cent lower than the 2005-2009 average of 766,000 square metres per annum. Overall, it is likely 2010/11 will see the industrial property market in Sydney continue to rebound following the devastating effects of the global financial crisis, the report said.