David Ferreri, Director at Coutts Wetherill Park told, The INDUSTRIALIST,” Western Sydney industrial vacancy has continued to fall. We have observed the rise of online sales and the confidence by some retailers to increase imports which has led to short term increased stockpiling driving the demand for A-grade industrial space.” 

Super low vacancy rates are supported by stable, long-term factors which include the structural shift to online retail and its role in creating greater activity among logistics, transport, as well as traditional food manufacturing operators.

“A large percentage of the supply expected to be delivered in 2021 and 2022 has already been pre-committed, and therefore expect vacancy rates to remain low over the short and medium terms.” states David Ferreri, Director at Coutts Wetherill Park.

B Grade facilities are also being snapped up quickly as a reflection of the lack of stock available.  In one recent transaction Mr Ferreri along with Bawdens negotiated a three year lease of a 2,729 factory at 126 Gilba Road, Girraween.  RHG Pty Ltd, specialist fencing manufacturers, secured the lease from a private investor for $106 per sqm net.

Mr Ferreri has also negotiated the sale of a 600sqm building (on 1,121sqm of land) at 23 Hargraves Place, Wetherill Park for $2,550,000. Demonstrating the strong appetite for such property, the sale reflects a sharp net yield of 3.65% and building sales rate of $4,250 per sqm.

“This is really a function of record-low bank rates, a very strong economic recovery and the fact that buyer demand is very strong against relatively low levels of stock," says Mr Ferreri, "Buyer demand has run well ahead of 'on market' supply”.