This article is from the Australian Property Journal archive
WITH more than $71 million in industrial and self-storage units selling off-the-plan at Arc Lane Cove, opportunities at the almost complete landmark project are limited.
Launched by privately owned Sydney property development company Hannas, Arc Lane Cove has now sold out all industrial units, with just a few storage units now available at the multi-storey industrial estate.
Located around 15 minutes out from the Sydney CBD at 16 Orion Road, the SBA Architects-designed three-level complex comprises 52 premium self-storage units and 46 industrial units, across a total gross floor area of almost 11,000sqm.
“From project launch we saw a surge in demand from both investors and owner occupiers with a mutual need for accessibility, natural light, air flow and proximity to the CBD within a development they can be proud of,” said Danny Hanna, CEO at Hannas.
“The purchaser interest in Arc Lane Cove has highlighted the buyer demand for a premium work experience not traditionally found in industrial estates and one that seamlessly integrates warehousing, modern offices and storage.”
Office/warehouse units at the project have achieved a new suburb benchmark for rents at $8,190/sqm, with storage units achieving $9,150/sqm.
Peter Mangraviti and Caris Kinsella from CBRE, alongside Brad Sutton and Matthew O’Neil from Sutton Anderson, have been managing the campaign.
“Much of the interest has been from business owners looking to locate their head offices close to where they live,” said Kinsella.
“We’re also fielding considerable interest from locals who have downsized on the residential front and don’t have the space they need to store boats, caravans and cars. Investors have also seen the opportunity to acquire premium industrial units in a market that is landlocked, close to the CBD and forecast to benefit from significant future rental growth.”
Kinsella also noted record low vacancy rates across Sydney’s industrial markets as a factor in the project’s success, with the city’s northern corridor vacancy rate at sub-1%.
Knight Frank recently revealed that vacancy in the east coast capital cities had dropped to another new low, with only 444,681sqm of space, representing almost two million square metres less space than the peak in October 2020.
“The project signifies a new era for industrial strata development, and we have noticed an appreciation from buyers for the development’s focus on creative design, functionality and amenity.”
The project includes premium finishes, with expansive windows and natural light, 24/7 security cameras, generous driveway width and awning allocations. As well as direct vehicle access from each level to the street for ease of logistics.
“The lower north shore location has been another key drawcard, with $3 billion invested into NorthConnex and an estimated $14 billion earmarked for the Western Harbour Tunnel, which will enhance the area’s accessibility,” said Sutton.
“The area’s performance track record has been another draw, with industrial rents in the Lane Cove area being 35% above the Sydney’s average, while annual capital growth has averaged 11% since 2011.”
