Short-term industrial lease deals are on the rise in Sydney, with construction groups appointed on major infrastructure projects driving this activity.
Highlighting the growing demand for shorter agreements is the recent lease of an 8,932sqm facility to Lendlease Bouygues Joint Venture in Castle Hill.
The Lessee secured Warehouse C, 46 Carrington Road after committing to a 12-month covenant, which was struck at $140 per sqm gross and offers an additional six-month option to extend.
CBRE’s John Micallef, who negotiated the transaction with colleagues Moshe Greengarten and Ben Byford on behalf of Pitt Street Real Estate Partners, said it was becoming more common for industrial and construction companies that are appointed on major contracts to take out short-term leases near to its project.
“The tenant holds the Northconnex contract and like many companies appointed on significant infrastructure projects, particularly government projects, were seeking space for 12-24 months,” Mr Micallef said.
“What we’re finding is that development site owners seeking short-term income are now tapping into this demand and are willing to offer facilities on shorter than usual agreements.”
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