David Ferreri of Coutts talks about the Western Sydney Industrial Space and why it remains a robust market place.
As we move further into 2025, the industrial property market in Western Sydney continues to demonstrate remarkable resilience and growth, positioning itself as one of the most dynamic sectors in the region’s real estate landscape say's David Ferreri. Despite global economic uncertainties and shifting market dynamics, the region remains a magnet for industrial activity and opportunity.
''Over the past twelve months, I have had the privilege of being deeply involved in this market, overseeing transactions totalling more than $75 million in sales.'' This figure is not only a reflection of the strong demand but also speaks volumes about the continued confidence that both owner-occupiers and investors have in the industrial property sector.
The market in Western Sydney has seen significant investment activity, particularly in areas surrounding key transport corridors, including the M4 and M7 motorways, as well as proximity to the Sydney Airport. These regions remain highly sought after by businesses looking to capitalise on the demand for logistics and distribution space. In fact, with Sydney continuing to evolve as a global trade hub, the industrial market’s strategic location is becoming even more crucial for businesses in need of last-mile delivery solutions Says David Ferreri.
Interestingly, one of the standout trends in the industrial property sector has been the dominance of owner-occupiers over investors and developers. Owner-occupiers now represent a significant portion of the market, as businesses increasingly recognise the long-term value in securing their own space in Western Sydney's prime industrial zones.
There are several reasons why owner-occupiers are taking the lead in the market. First and foremost, businesses are seeking greater control over their operational costs. With rising rents and a volatile leasing market, securing ownership allows businesses to lock in their operational base and mitigate risks related to fluctuating lease prices. Additionally, many businesses, particularly those in the logistics, manufacturing, and e-commerce sectors, are looking for larger, more tailored spaces that can support their operational needs in the long term.
Looking ahead to 2025, the outlook for the Western Sydney industrial market remains incredibly positive. With the continued expansion of e-commerce and a growing reliance on logistics and distribution hubs, demand for industrial spaces is expected to remain strong. Furthermore, the region’s infrastructure developments—such as the planned upgrades to major transport links and the growth of the Western Sydney Aerotropolis—are set to further enhance its appeal to both owner-occupiers and investors alike.
As businesses increasingly turn to Western Sydney to expand their operations, the region is expected to remain one of the most attractive industrial markets in Australia. With its strategic location, access to infrastructure, and robust economic growth, it will continue to offer tremendous opportunities for both commercial buyers and investors.
By David Ferreri, Director of Coutts Wetherill Park