This article is from the Australian Property Journal archive
SYDNEY developer Hannas has been given the go ahead for its $73 million vertical industrial estate in Sydney’s west, with early adopters showing faith in the multi-storey facility due to diminishing land supply.
The three-level estate,Stream Northmead, at 150 Briens Road in Northmead, around 26km west of the Sydney CBD, will comprise 34 warehouses with mezzanine offices ranging from 105sqm to 438sqm and 50 strata storage units ranging from 11sqm to 91sqm.
“Vertical industrial estates are the solution moving forward, with limited land leading more developers to go up,” said Charlie Martin, COO at Hannas.
“Almost 40% of the warehouses have been sold so far – a testament to the faith buyers have in Hannas to buy industrial off the plan.”
The industrial vacancy rate in Sydney is the lowest in the country, according to CBRE, at just 0.5%, with only 5% of total industrial-zoned land in Sydney is undeveloped and serviced.
“Demand has largely stemmed from owner-occupiers planning around a future lease expiration who instead want to occupy an owned-premise, while investors have been attracted to the opportunity to purchase within one of Sydney’s most tightly held industrial markets,” added Martin.
Rents in Northmead are up 32% over the last 18 months, with the value of strata warehouses up 54% over the last five years, according to Parkside Commercial Real Estate.
“Industrial is moving away from the heavy industry, manufacturing style we are so accustomed to, we are noticing a new wave of businesses now requiring warehousing space that wasn’t there before; this market has continued to gain momentum since 2020 and is largely driven by the e-commerce boom,” said Martin.
“Industrial now needs to adapt to meet these demands, businesses now want to be co-located with their business’ full operation, which will see more warehouses integrate mezzanine offices and amenities.”
The estate sits adjacent to the Westmead Health Precinct, Australia’s largest health and biomedical research precinct.
Construction on Stream Northmead is set to commence in Q3 2024 and is expected to take around 14 months to deliver.
