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News release

Fast-growing e-tailers snap up industrial properties in Metropolitan Sydney

• Online retailer, OzSale secures 17,105 square metres in Smithfield, NSW
• Etailing benefits industrial and retail sector as consumers enjoy a broader range of purchasing options.

SYDNEY, 15 September 2011 – With consumers increasingly looking at a broad range of purchasing options, e-tailing companies including OzSale are rapidly outgrowing their warehouses and are now looking at large logistics centres in Metropolitan Sydney.
While online sales still only account for between 2% -5% of all retail sales in Australia, e-tailing companies have experienced steady growth over the past five years.   
In a recent deal negotiated by Andrew Maher, Head of Industrial, NSW at Jones Lang LaSalle, OzSale leased a 17,105 square metre warehouse at Smithfield for a five year term.
The fast-growing e-tailer has been in operation for five years and in that time has increased its warehousing space from 300 square metres in 2006 to 3,000 square metres in 2009 and now 17,000 square metres.
In commenting on the deal, Mr Maher said, “OzSale are currently dispatching in the order of 5,000 parcels per day from their Brookvale premises and with massive growth plans required a much larger facility capable of receiving large volumes of inbound product and suitable for the dispatch of several thousands parcels each and every day.”
In commenting on the specific property requirements of e-tailers, Mr Maher said, “E-tailing companies are looking for premises that allowed for growth and were looking to partner with landlords that could offer flexibility in their lease structure so as to deal with the unquantifiable growth prospects these businesses have”.
“We have had numerous enquiries from a variety online retail companies seeking anywhere from 500 to 40,000 square metres. This growth of the etailing sector is underpinning demand for industrial and logistics properties across Sydney,” Mr Maher said.
While physical storefronts continue to be the most popular purchasing location for consumers, online shopping is becoming increasing popular, particularly with tech-savvy Generation Y and Generation Z shoppers.
NSW Retail Leasing Director, Brett Henson said, “The way in which people purchase goods and services is evolving. Physical stores are and will continue to be the backbone of the retail sector, however, consumers now have a range of purchasing options which will be beneficial to both consumers and retailers.”
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