Sydney, 03 March 2015 – South Sydney is emerging as one of the most in-demand industrial precincts, with new tenants and business ventures vying to gain a presence in the sought after market.
CBRE Manager, Industrial & Logistics Services, Mark Silva said over the past few months there had been an influx of new operators looking to gain a foothold in the South Sydney market.
“South Sydney’s landscape is undergoing a significant transformation as the area becomes more residential focused,” Mr Silva said.
“As a result, companies are looking to capitalise on the area’s bourgeoning residential population with more retail based operations opening in the traditionally industrial focused area.”
Demonstrating the trend, souvenir specialist Noah’s Trading Company Pty Ltd recently leased a 1,028sqm freestanding industrial facility at 5 Burrows Road South in St Peters.
Located on the border of Alexandria and St Peters, the building offers huge clearances of 10 metres, modern office accommodation, wrap around balconies and ample onsite parking.
Mr Silva negotiated the deal on behalf of lessor JCD Business Solutions Pty Ltd. The tenant committed to a three year term on the property for an annual rental of $140,000 per annum net.
Mr Silva said the proximity to the Sydney CBD, airport and Port Botany were driving factors behind the tenant’s decision to move to South Sydney.
“South Sydney is becoming a destination for a range of new and exciting businesses opportunities due to the large volume of residential development activity in the area,” Mr Silva explained.
Gelato Messina is one company that has capitalised on this activity, having recently leased a 1,052sqm building at 58 Mentmore Avenue, Rosebery.”
Nick Palumbo from Gelato Messina commented: “Location was key for us and the property had the right blend of factory space as well as retail opportunity.”
Meanwhile, CSR Building Products Pty Ltd has leased a 1,562sqm facility at 116 Rothschild Ave in Rosebery from Mentmore 60 Pty Ltd. CSR signed a three year term on the property for an annual rental of $228,052 per annum net.
CSR is in the process of establishing its first trade centre for its glass division Viridian in Rothschild Avenue, Rosebery.
Nathan Egan, Managing Director of CBRE South Sydney said the property’s location was ideal to service CSR’s clients who require easy access to and from the CBD and surrounding areas.
“This property is regarded as one of Rosebery’s finest freestanding industrial buildings and offered a range of features suited to the tenant’s needs,” he remarked.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 52,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 370 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
