Owner-occupier demand in Sydney's industrial market remains "bouyant" heading into 2020, despite funding being an issue for some buyers, Link Property Services says.

In an review of the market posted to social media, Link Property Partner Mark Cadman said a mix of low interest and increased demand were driving yields down to "levels not seen before".

Mr Cadman told WILLIAMS MEDIA the Sydney market had outperformed expectations from an investment sale perspective throughout 2019.

"Owner occupier demand softened in most markets this year," he said.

"Leasing demand is strong sub 3,000 square metres in the Sydney market and softens as size increases, particularly in excess of 10,000 square metres."

Mr Cadman identified a fluctuating economy as one of the main challenges facing the market in the year ahead.

"One of the major issues for the market in 2020 is linked to how well the economy performs," he said.

"There exists the threat of a recession, which will force occupiers to become conservative from a relocation perspective.

"Funding also remains an issue for many owner occupiers."

Among the highlights for the Sydney market in 2019 was the commencement of earthworks at Badgery's Creek for the new Western Sydney Airport, which is scheduled to open in 2025.

Mr Cadman described the planned precinct as "game changing".

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