The hailstorm that hit Sydney in December impacted more than just personal property, according to CBRE.

Research from the agency indicates the immediate need from vehicle dent removal companies for space in the aftermath of the storm sparked more than 35,000 square metres of leasing activity across the city.

CBRE Industrial and Logistics Senior Director Michael O'Neill said the nature of the storm damage meant there was a greater demand than in previous instances where Sydney had experienced hail.

“Unlike the hailstorm on Anzac Day in 2015, which was severe but localised, this most recent storm affected the majority of Sydney, as well as the Central Coast," he said.

"The 2015 hailstorm destroyed several large facilities, which needed to be replaced but did not cause such widespread damage to vehicles."

One of the spaces that has been leased in South Sydney. Source: CBRE 

CBRE’s Industrial and Logistics team negotiated nine leasing deals totaling over 35,000 square metres between December 20 and January 1, with locations including Mount Kuring-gai, Homebush, Milperra, Castle Hill, Girraween, Smeaton Range, Alexandria and Banksmeadow. 

Among the major deals was a 12-month lease signed by Action Smart Repairs on a 14,031sqm property at 270 Horsley Road, Milperra.

The deal, reflecting a rental of $112.50 per square metre (gross) was negotiated in 12 hours by CBRE’s Keegan Ridings. 

Action Smart Repairs also leased two units totaling 2,400sqm at 7-15 Gundah Road, Mt Kuring-gai for a gross rental of $153 per square metre.

The deal, negotiated by CBRE’s Ben Byford, was finalised within two weeks.

Mr O Neill said activity was indicative of an immediate, albeit temporary surge within the industrial & logistics market. 

“Vacancy is already very tight at sub-2 per cent in most Sydney submarkets, so these transactions reflect up to 20 per cent of the vacant stock,” he said.

“While the majority of these recent transactions are relatively short term, the rents were mostly premium rates given most landlords are looking for longer tenure.

"Most of these owners will continue to market their facilities for longer term occupation, but now have the benefit of a premium passing income."

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