logo redirect pin user minus plus fax mobile-phone office-phone data envelope globe outlook retail close line-arrow-down solid-triangle-down facebook globe2 google hamburger line-arrow-left solid-triangle-left linkedin wechat play-btn line-arrow-right arrow-right solid-triangle-right search twitter line-arrow-up solid-triangle-up calendar globe-americas globe-apac globe-emea external-link music picture paper pictures play gallery download rss-feed vcard account-loading collection external-link2 internal-link share-link icon-close2
Australia
  • Global
  • United States
  • Albania
  • Argentina
  • Australia
  • Austria
  • Bahrain
  • Baltics
  • Belgium
  • Bosnia & Herzegovina
  • Brazil
  • Bulgaria
  • Cambodia
  • Canada
  • Chile
  • Colombia
  • Croatia
  • Czech Republic
  • Denmark
  • Egypt
  • Finland
  • France
  • Germany
  • Greece
  • Hong Kong
  • Hungary
  • India
  • Indonesia
  • Ireland
  • Israel
  • Italy
  • Japan
  • Jordan
  • Kazakhstan
  • Kenya
  • Korea
  • Kuwait
  • Latin America
  • Luxembourg
  • Mainland China
  • Malaysia
  • Mexico
  • Montenegro
  • Morocco
  • Netherlands
  • New Zealand
  • North Macedonia
  • Norway
  • Oman
  • Pakistan
  • Panama
  • Philippines
  • Poland
  • Portugal
  • Romania
  • Saudi Arabia
  • Serbia
  • Singapore
  • Slovakia
  • Slovenia
  • South Eastern Europe
  • Spain
  • Sweden
  • Switzerland
  • Taiwan
  • Thailand
  • Turkey
  • Ukraine
  • United Arab Emirates
  • United Kingdom
  • Venezuela
  • Vietnam
Log In
  • Global Intranet
  • myCBRE
  • Services
    • Business Lines
      • Advisory & Transaction Services
      • Capital Markets
      • Global Workplace Solutions
      • Investment Management (CBRE Investment Management)
      • Property Management
      • Valuation & Advisory Services
    • Industries & Specialties
      • Agribusiness
      • Build-to-Rent
      • Building, Depreciation & Cost Consultancy
      • Government Real Estate Advisory & Transactions
      • Hotels
      • Industrial & Logistics
      • Office
      • Residential
      • Retail
      • Retirement & Healthcare
      • Sustainability
      • Flexible Workspace
    • Services for Investors
      • Debt and Structured Finance
      • Host
      • Institutional Investments
      • International Investments
      • Investment Accounting & Reporting Solutions
      • Structured Transactions & Advisory
      • Leasing & Advisory
      • Metropolitan Investments
      • Property Management
      • Property Sales
      • Recovery & Restructuring
      • Valuation & Advisory
    • Services for Occupiers
      • Facilities Management
      • Leasing & Advisory
      • Occupier Consulting
      • Portfolio Services
      • Project Management
      • Sale and Leaseback
      • Structured Transactions & Advisory
      • Transaction Management
      • Valuation & Advisory
      • Workplace
  • Properties
    • Agribusiness
      Hotels
      Industrial & Logistics
      Institutional Investments
      Metropolitan Investments
      Office
      Residential
      Retail
  • Research & Insight
    • Australia Research
      Asia Pacific Research
      Global Research
      Expert Opinions
      Talking Property Podcast
  • People & Offices
    • Pacific Executive Committee
  • About CBRE
    • [email protected] - LGBTQI+ Inclusion
      Careers
      Case Studies
      Client Tools
      Corporate Information
      Environmental, Social and Governance
      Investor Relations
      Media Centre
      Reconciliation
      The Place Makers

Previous

Press Release
Fitness retailer muscles in on Subiaco’s The Colonnade

Next

Press Release
Domestic group scoops Sydney’s Westend Hotel for $19m
  • Home
  • About CBRE
  • Media Centre
  • Tenant demand shifts from South Sydney to the south-west

Tenant demand shifts from South Sydney to the south-west

18 May 2015
  • Email
  • Share
  • Tweet
  • Share

Sydney, 19 May  2015 – Sydney’s south-west is emerging as one of the most in-demand regions for industrial businesses, due to increasing residential re-development projects and rising rents pushing tenants out of South Sydney.

Demonstrating this trend, CBRE has recently leased two warehouses (totaling 4,637sqm) in Riverwood Business Park to Compu-Stor and Royale International Couriers, with a further 2,909sqm under offer in the same estate.

CBRE’s Chris Ryan, Tom Rourke and Nathan Egan negotiated the lease agreements on behalf of Goodman.

Mr Ryan said a significant shift in tenants moving out of South Sydney and along the M5 corridor has recently been identified.

“There is a declining supply of quality industrial properties in South Sydney as a result of increased residential conversions, which are shrinking the supply pool and prompting businesses to look at alternative locations.”

“The recent lease agreements in Riverwood Business Park demonstrates this trend as the businesses were originally looking for properties in South Sydney but committed to alternative locations due to a lack of appropriate sites,” Mr Ryan said.

Areas such as Riverwood are gaining more traction in the leasing market due to the lower average rents and strategic positioning along the M5 Corridor.

“Riverwood is an established industrial precinct with the desirable positioning on the M5 motorway corridor in Sydney's south-west, 24km from Sydney CBD and 12km from Port Botany,” Mr Ryan said.

CBRE Industrial Manager Tom Rourke continued; “as the vacancy rates in Riverwood decline, we expect this shift to continue further out along the M5 corridor. Suburbs such as, Padstow, Milperra, Condell Park and Moorebank are the next hotspots on the radar for industrial tenants.”

CBRE Research has further determined residential conversions are contributing to upwards pressure on rents in South Sydney,  with super prime net face rents increasing 2% and prime net face rents increasing 1.3% in quarter 1 2015.

“By choosing tenancies out of South Sydney, tenants are not only capitalising on rental discounts of circa 20% net, but are also finding that the outgoings are halved – providing gross discounts of over 30%,” said Mr Rourke.

“If the proposed M5 extension and Moorebank Intermodal goes ahead this may further encourage businesses to look at alternative areas out of South Sydney.”

For Australian/international news or global stories, follow us on Twitter.

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.​

 

 

 

 

 

 

 

Media Contacts

Kathryn House Headshot
Kathryn House
Communications Director
Pacific
+61 2 9333 3585
+61 402 465 440
  • Corporate Information
  • Corporate Responsibility
  • Media Centre
  • About CBRE
  • Careers
  • Case Studies
  • People & Offices
  • Executive Committee
  • Investor Relations
  • Contact Us
  • Australia Privacy Policy
  • Global Web Privacy and Cookie Notice
  • Whistleblower Policy
  • Sitemap
  • Terms of Use
  • LinkedIn
  • Twitter
  • Facebook
  • Instagram
  • Youtube