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Goodman Wins Approval for $3bn Oakdale West

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A massive industrial development in Sydney’s western suburbs, dubbed Oakdale West, is the latest development to be approved in the western Sydney employment area that will create more than 200,000 additional jobs over the next two decades.

The overall concept plan — being developed by Goodman and Brickworks over five stages — will see the entire 89 hectare Oakdale facility, including existing precincts, grow to an end value of $3 billion as it is built out over the next ten years.

The pair have won approval for the first stage of building works for complexes spanning 116,000sq m as well as initial infrastructure works with $95 million invested in the first stage.

Once complete, the development will be the largest parcel of industrial-approved land in western Sydney, creating more than 1,800 jobs with e-commerce, third-party logistics, retail, pharmaceutical and automotive tenants predicted to follow supermarket giant Coles lead, taking space in 2023.

“This approval is a milestone in the history of Oakdale Industrial Estate and cements our commitment, alongside Brickworks to invest in Western Sydney,” Goodman general manager Jason Little said.

Oakdale West will be located near key motorways and the under-construction Western Sydney Airport.

Infrastructure works at Oakdale West are due to commence imminently including the construction of a two-lane dual carriageway regional road that will connect the estate to Lenore Drive and provide easy access to the nearby M7 and M4 motorways.

“We have consulted extensively with the local community and have made significant infrastructure investments in the area to ensure it’s opened up to benefit the community at large,” Little said.

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▲ The next four stages of the state significant development are set to be delivered over the next 10 years.


Sydney's shift into logistics and e-commerce

Over the last 12 months, Sydney's industrial market has seen a notable increase in new supply and a growing leasing activity.

Sydney recorded above average activity with over 1.05m square metres leased, just above the 10 year average of 1.01m square metres according to global real estate group Savills.

“Following a prolonged period of subdued rental growth, the lack of quality stock and strong demand for prime industrial space has resulted in above average growth in prime industrial rents over the past four years,” Savills head of research Phil Montgomerie said.

“Industrial precincts such as the West and the Outer South West recorded 13.6 per cent and 16.7 per cent growth respectively over the same period.”

Development of industrial supply returned to pre-GFC levels, supported by strong tenant demand for new industrial facilities.

A surge of speculative development across Sydney was also evident, with over 80 per cent reportedly leased prior to or at practical completion.

The figures highlight that Sydney's industrial landscape is quickly changing to accommodate a growing population and reliance on e-commerce with forecasts indicating the city's population will double over the next 25 years.

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Article originally posted at: https://theurbandeveloper.com/articles/goodman-wins-approval-on-3bn-oakdale-west-