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News release

Sydney

Industrial leasing activity in South Sydney is the highest it’s been in 12 months: JLL

The settlement of residential development site sales and business confidence drives activity


​​SYDNEY, 3 JULY 2014 – Industrial leasing activity in South Sydney is the highest it’s been in 12 months, according to JLL agents.

JLL’s Head of South Sydney, Blair Peterken, said industrial leasing activity has increased largely as a result of the number of residential development site sales from the past 18 to 24 months now settling. It is also due to the increased confidence of businesses in the market, according to Mr Peterken.

“The popularity of Sydney’s residential development areas in suburbs including Alexandria, Rosebery and Waterloo is fuelling the movement of industrial tenants, who are increasingly either relocating west or to outer suburbs of South Sydney such as Botany and Marrickville. These areas are cost-effective for rent and efficient for transport, being closer to Port Botany.

“The activity is also being driven by the increased confidence in the market, with a number of industries performing well in the area including online-based companies and third-party logistic providers who service these online businesses.”

Mr Peterken said there are a number of industrial leasing deals that have already transacted in South Sydney recently, and seven or eight more in the pipeline. 

“A large occupier has leased 306 Coward Street, Mascot which is 9,900 square metres of industrial space. Big Picture has committed to a lease for a 3,771 square metre site at 40 Lord Street, Botany, moving from a development site JLL is currently selling on behalf of Woollahra Council.

“Three tenants have signed Heads of Agreements at 1 Hale Street, Botany totalling 12,000 square metres and approximately another seven larger properties have agreed terms in the South Sydney area. Visa Logistics has recently leased 4,000 square metres at Hale Street in Botany, and JLL also recently managed a 3,500 square metre leasing deal with Goodman at Alexandria Industrial Estate on Bourke Road, Alexandria.

“We are anticipating the other seven or eight remaining industrial leasing deals that are in negotiation to transact in the coming weeks,” Mr Peterken concluded.