Region. High leasing demand

Western Sydney had not received such a high leasing demand for industrial property for more than a decade, with speculative-basis warehouses expected to be built in the next two quarters, said CBRE regional director for industrial and logistics services, Joshua Charles. “Western Sydney A-grade warehouse rents will grow 5 per cent over the next 12 months, incentives will contiune to contract towards 8 per cent and vacancy periods are in some cases non-existent,” he said.

Region. Speculative development

Joshua Charles, CBRE regional director, industrial, logistics and investment, predicts an increase in speculative warehouse development this year, primarily in Western Sydney, following the national surge for new warehouses, prompted, in part, by the intensifying competition between Coles and Westfarmers.

Region. Warehousing push in the outer west

CBRE’s Sydney Industrial MarketView said a notable trend is the push from tenants to consolidate multiple sites under one roof to improve efficiency. To do this warehousing operations have need to move to the outer west to find large lots of industrial land. Over 200,000 square metres of new industrial space was pre-committed over the year to June 2010 by the retail sector, all of which is located in the outer west. “The next six months will see a limited and very strategic return to speculative building of warehousing in Western Sydney,”said CBRE regional director, industrial, logistics and investments, Joshua Charles, in The Australian Financial Review.

Region. Demand for warehouse space

CBRE’s regional director of industrial and logistical services, Joshua Charles, said any warehouse vacancies would not remain empty for long and that competition for A-grade space was “most definitely building." He said CBRE had more than 376,000 square metres of warehouse requirements in Western Sydney. He was commenting following Port Botany's container through-put being up 25.4 per cent on the same month last year – the fifth consecutive month of record imports for Sydney. The UWS Urban Research Centre report, North-West and West-Central Sydney Employment Statistics, notes Western Sydney is the prime destination for Sydney’s goods traffic, performing the major role in logistics and NSW regional supply chain linkages.