Sydney, 23 September 2013- South Sydney’s Industrial Strata market is undergoing a transformation at present, with demand for both sales and leasing properties through the roof.
Areas such as Alexandria and Mascot are seeing a changing demographic and buyers/tenants are struggling to find the stock to meet their needs.
Mark Silva, manager of CBRE’s Industrial & Logistic team in South Sydney said that smaller properties between 150-1,000sqm are proving the most popular.
“Properties for both sale and lease are hard to come by at the moment. We are finding quality, well priced units are being snapped up quickly by tenants or owner occupiers,” said Mr Silva.
“The highest number of enquiries in the middle two quarters of the year has come from expanding tenants/owners who are seeking additional warehouse space for their increased stock numbers.”
“We have also seen an increase in the amount of investors re-entering the market after a slightly subdued 2012.”
Chris Ryan, senior negotiator at CBRE, said that some of the properties sold this year include a 681sqm warehouse on Ralph Street in Alexandria for $1.95 million. The buyer, Intermain Pty Ltd, is a commercial fit-out business who is currently based in a 1,000sqm unit at Bowden Street, Alexandria. They purchased Ralph Street as an additional warehouse to use as a joinery workshop.
1/53 Burrows Road, a 794sqm unit to Obeco Glass Blocks Pty Ltd for $1.25 million from sellers Stelladorate Pty Ltd. Obeco are Australia’s largest importer and distributor of glass blocks and came out of a smaller 550sqm warehouse in Roseberry.
A 400sqm warehouse on Burrows Road in Alexandria to Hamad Properties for $700,000.
Two high tech units from vendor Barlac Pty Ltd to Mr and Mrs Mesiti for $1.25 million, and a Bowden Street property, sold by ANZ to Building Durability for $450,000.
Recent leases include a modern 328sqm strata unit in Waterloo from Seaberth Pty Ltd to Lace Me Up Pty Ltd for $170/sqm net. The company imports ‘onesies’ and higher demand from adults has driven their business growth as they move from a 120sqm warehouse in St Peters.
A 226sqm warehouse/office/showroom in Alexandria to Fitness Systems United for $180/sqm net, of which former Wallabies captain George Gregan is a director.
A 394sqm office warehouse on Young Street, Waterloo, for $175/sqm net and a 418sqm warehouse to Phytologic from $170/sqm gross.
“Confidence has returned and conditions are now perfect for owners looking to sell or lease their premises; this is certainly the time to bring your property to the market,” said Mr Ryan.
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