High demand and low supply are the impetuses behind two large-scale industrial property developments in Sydney’s west that will cater to a wide range of users from food storage to self-storage.
The $2 billion Nepean Business Park will occupy a 49-hectare former quarry site adjacent to the Sydney International Regatta Centre. “There is clear demand for this style of industrial and warehouse space, with the Penrith area fast becoming an employment hub for major industry and suppliers,” Baudient said.
Micallef said a small lot subdivision of this scale had not been developed in Sydney for at least 15 years, “if ever”, providing significant opportunity for occupiers at a time when the city’s outer north-west vacancy was just 0.2 per cent, the tightest globally.“Sydney’s industrial market is predominantly controlled by institutions who develop to hold long-term, and typically focus on larger buildings above 4000 square metres,” Micallef said.
“Given the increase in Australia’s migration program planning, we estimate an additional 800,000 people will be living in Sydney between now and 2031. The forecast population growth is expected to create demand for around 3.6 million square metres of industrial and logistics floor space over this period,” J-Baleh said.