South-West. Industrial market picking up

The south-western Sydney industrial market has shown signs of picking up, with demand for premises to buy and lease increasing, and owners able to reduce incentives needed to lure tenants, according to the Sydney Morning Herald. Prime-grade rents ranged from $95 per square metre to $110 per square metre, whereas in Botany rents were around $135 per square metre. Jeff Pond, of Link Property Services, said the region, a traditional manufacturing location, was changing to warehousing and distribution. “There will be a push in the south-west from companies competing in south Sydney who are being pushed out of that location because of high land values,” he said.

Region. Industrial rents fall

Sydney’s worst hit region for industrial property rents in the past year was the outer west, where average rents fell 9 per cent to $100 a square metre, according to LandMark White. The outer south-west fell 5 per cent to $95 a square metre, and the centre south-west 4 per cent. Sydney’s outer west accounts for more than half the planned supply of industrial buildings, and LandMark White expects planned projects will be pushed back until demand improves, according to The Australian Financial Review.