Sydney’s Sutherland Shire has seen a huge increase in enquiry as the squeeze on Sydney’s industrial land continues, according to the latest research from Colliers International.

The Sutherland Shire industrial precinct, bounded by Woolooware Bay in the South and Kirrawee in the North, is witnessing a huge growth in industrial users seeking space, with areas such as Taren Point and Kirrawee growing as much as 15 – 20 per cent year on year driven by industrial users heading south. 

At a glance:

• Parts of the Sutherland Shire industrial precinct have grown by up to 20 per cent year on year
• Growth driven by industrial users moving south because of the ongoing tightening of Sydney’s industrial land availability
• Preferential pricing, access to local workforce and shorter commutes add to Sutherland Shire appeal

According to the research, in the last five years there have been significant withdrawals from the industrial South Sydney market, as a result of rezoning of industrial land to a higher and better use along with compulsory government acquisition of multiple industrial land parcels for the Westconnex and Metro Rail.

This has caused many tenants and owners to head South to take advantage of the more affordable pricing, lower outgoings and range of various options that this very strong precinct offers. 

National Director, Industrial for Colliers International, Mr Trent Gallagher said that the appeal for industrial owners and occupiers was preferential pricing on other industrial markets along with access to a local workforce and shorter commute.

“With the proposed infrastructure of the F6 motorway extension to come over the coming years, this is a lifestyle precinct coupled with efficient industrial facilities only 15 minutes south by car from Sydney airport – doesn’t get much better than that,” Gallagher said.

“Subsequently, there has been increased competition in all the on and off-market opportunities and price growth and yield compressions is as strong as ever.

“Many property investors are seeing considerable value add in the Sutherland Shire market as the strong belief is that rental values in this precinct will continue to grow as more users shift south from South Sydney to the Sutherland Shire creating more demand which will continue to increase rents.”

Colliers recently sold a fully leased industrial asset leased to Thrifty Car Rental in Caringbah for a record yield of sub four per cent. 

Colliers International research suggests that there has been steady growth in the gross regional product for the area over the last fifteen years, with small increments in the residential population. 

The estimated local jobs of 85,919 looks set to grow on the back of investment and better infrastructure in the area and is already up 6.88 per cent on last year. With very low local unemployment of circa two per cent, well below national average, this is a strong market for local jobs, underpinning the growth of industrial assets in the area.

The Colliers International team have transacted approximately $124 million worth of industrial property in 2019 alone with most of these transactions being buyers shifting south from the core South Sydney market around Mascot, Alexandria and Botany. 

Similar to this:

Successful sale of land parcel in Kingsgrove shows it remains a Sydney industrial ‘hot spot’

Rare Lane Cove corn mill to be sold by Cushman & Wakefield

Paving the way for a unique industrial venture in Greenacre in Sydney