An opportunity for investors and businesses to enter one of Australia’s tightest industrial markets, North West Sydney, has been listed today. 

The sale of Unit 1, 163 Prospect Highway, Seven Hills, will be offered with a leaseback to Tyrolit, a renowned global construction supplier headquartered in Austria. With a high clearance warehouse, showroom and corporate-style office, the site has a total building area  of 2,087 sqm and offers connectivity to the M2 and M7 Motorways.  

Cushman & Wakefield’s Harry Dalton and Joseph Siokos have been appointed as the exclusive selling agents. 

Harry Dalton, Cushman & Wakefield’s Executive, Brokerage Logistics & Industrial – Sydney West said the Seven Hills listing comes during a unique window of opportunity for  investors.  

“With interest rate cuts and moderating bond yields on the horizon, we expect industrial  assets to experience an upwards revaluation. We’re seeing investors seeking to take  advantage of the current market dislocation and expect this to be a factor driving demand for  assets like 163 Prospect Highway.” 

“With excellent connectivity, high visibility and strong growth potential, the Seven Hills site is  a rare opportunity to establish a foothold in North West Sydney with the security of a  multinational tenant.” 

The current vacancy rate in the North West sits at just 1.5%, making it one of the tightest  markets in the country, according to research by Cushman & Wakefield. In comparison, the  vacancy rates for Sydney and the national market are 2.1% and 2.3%, respectively.  

One contributor placing upward demand on industrial space and rents is population growth, which has expanded the potential labour pool for local businesses. Over the past decade,  the North West has witnessed an average population growth of 2.4% per annum,  significantly outpacing the national average of 1.4%. 

Joseph Siokos, Cushman & Wakefield’s Executive, Brokerage Logistics & Industrial – NSW said the undersupply of warehouse space has led to notable rental growth. 

“Prime rents have surged by 6.2% so far in 2024, outperforming the broader Sydney market,  which recorded a rise of 4.4%. This rental outperformance is expected to persist as supply  remains low relative to demand.” 

Despite an average take-up of 165,000 sqm per annum since 2020, Cushman & Wakefield  analysis shows 136,000 sqm of speculative supply is projected to enter the North West  market by the end of 2025. This includes key developments such as EQT Exeter’s 500  South Street, Marsden Park, adding 25,933 sqm, alongside Dexus’ Vertex Industrial Estate  and new projects within the Sydney Business Park, also located in Marsden Park. 

Unit 1, 163 Prospect Highway, Seven Hills, is for sale via expressions of interest, closing at  3pm, Wednesday, 30 October 2024 (AEDT). 

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