Development activity in and around Kemps Creek in Western Sydney is on the rise, with the potential for just over 1 million sqm of speculative projects expected to enter the market by the end of 2025. The Outer West is a key driver of this pipeline, contributing almost 420,000 sqm of development over the same period.

Western Sydney’s gross take-up measured approximately 470,000 sqm in the first half of 2024. While this level of demand is below the levels recorded since 2020, it remains above the pre-pandemic average of 400,000 sqm.

Despite the anticipated increase in supply, the Western Sydney vacancy rate currently averages 2.1%, significantly below the market equilibrium of 5.0%. This low vacancy rate underscores the strong demand and vibrant economic activity in the region.

Supporting this growth is substantial investment in infrastructure, with approximately $100 billion in funding allocated across Sydney. This includes the recently opened WestConnex project and the new Western Sydney Airport, both of which are set to enhance connectivity and accessibility.

In this dynamic environment, Frasers Property Industrial & Aware Real Estate have successfully leased Lot 8 at The YARDS, comprising 15,815 sqm of warehouse and office space, to PIP ANZ Pty Ltd for a seven-year term. The lease was negotiated by Carl Pearce and Fab Dalfonso of Cushman & Wakefield.

Carl Pearce said “There is confidence from occupiers with the recent investment in infrastructure which will further support the area with approximately $100 billion in funding occurring across Sydney, headlined by the recently opened WestConnex project and the new Western Sydney Airport.

Almost one-third of Sydney’s population lives within a 30-minute drive from The YARDS, which is just 14km from Western Sydney Airport, 56km from Port Botany, and 47km from Sydney’s CBD. Within a 45-minute drive of the site, almost 4.0 million residents can be reached, and this is forecast to grow to 4.6 million over the next 10 years. 

Further, approximately $56.7 billion in retail expenditure can be accessed within a 45-minute drive time, 18.9% of which is spent online.”

Fab Dalfonso added, “Despite the increase in supply, the Western Sydney vacancy rate currently averages 2.1%—well below the market equilibrium of 5.0%. We are continuing to track strong leasing demand across western Sydney”
Roland Martin, General Manager – NSW at Frasers Property Industrial, said PIP ANZ Pty Ltd. will be a strong addition to the premium estate.

“We are delighted to have PIP ANZ Pty Ltd join us at The YARDS. We have worked closely with PIP ANZ Pty Ltd to develop a facility that will meet the needs of their business now and well into the future. 

“The YARDS is undergoing significant construction with five additional buildings on schedule for completion for this year and the estate is now 75 per cent leased. Offering best-in-class warehouse and logistics facilities, alongside leading sustainability and employee wellbeing features, The YARDS sets a new standard for industrial precincts in Australia,” Mr Martin added.  

Michelle McNally, CEO of Aware Real Estate, also welcomed PIP ANZ Pty Ltd to The YARDS. “The community being built at The YARDS is exceptional. The estate has been uniquely designed for businesses and employees to thrive with sustainability and innovation at the forefront. This proposition is resonating with the market and is evident through the leading Australian and global customers that continue to sign on at the estate.”
Practical completion of PIP ANZ Pty Ltd’s facility is planned for June 2025.

Related reading:

Frasers Property Industrial announces 5 new leasing deals in VIC & NSW

Private Capital fuels growth in Industrial market - Cushman & Wakefield 

Botany industrial assets sold for $9.52m - Cushman & Wakefield