The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
FULL PROGRAM RELEASED FOR URBANITY-25 CONNECTING PROPERTY LEADERS ACROSS THE ASIA PACIFIC
FULL PROGRAM RELEASED FOR URBANITY-25 WHERE THE PROPERTY INDUSTRY CONNECTS
VIEW FULL AGENDADETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
ResidentialStaff WriterMon 18 May 15

Tenant Demand Shifts From South Sydney To The South-west

1

Sydney's south-west is emerging as one of the most in-demand regions for industrial businesses, due to increasing residential re-development projects and rising rents pushing tenants out of South Sydney.

CBRE agent Chris Ryan said a significant shift in tenants moving out of South Sydney and along the M5 corridor has recently been identified.

"There is a declining supply of quality industrial properties in South Sydney as a result of increased residential conversions, which are shrinking the supply pool and prompting businesses to look at alternative locations.""The recent lease agreements in Riverwood Business Park demonstrates this trend as the businesses were originally looking for properties in South Sydney but committed to alternative locations due to a lack of appropriate sites," Mr Ryan said.

Areas such as Riverwood are gaining more traction in the leasing market due to the lower average rents and strategic positioning along the M5 Corridor.

"Riverwood is an established industrial precinct with the desirable positioning on the M5 motorway corridor in Sydney's south-west, 24km from the Sydney CBD and 12km from Port Botany."CBRE Industrial Manager Tom Rourke continued; "as the vacancy rates in Riverwood decline, we expect this shift to continue further out along the M5 corridor. Suburbs such as  Padstow, Milperra, Condell Park and Moorebank are the next hotspots on the radar for industrial tenants."

ALSO SEE: Payce Upsizes South Sydney Project

CBRE Research has further determined residential conversions are contributing to upward pressures on rents in South Sydney, with super prime net face rents increasing 2% and prime net face rents increasing 1.3% in quarter 1, 2015.

"By choosing tenancies out of South Sydney, tenants are not only capitalising on rental discounts of circa 20% net, but are also finding that the outgoings are halved - providing gross discounts of over 30%," said Mr Rourke.

"If the proposed M5 extension and Moorebank Intermodal goes ahead this may further encourage businesses to look at alternative areas out of South Sydney."

IndustrialAustraliado not useSector
AUTHOR
Staff Writer
"TheUrbanDeveloper.com is committed to delivering the latest news, reviews, opinions and insights into the best of urban development from Australia and around the world. "
More articles by this author
ADVERTISEMENT
TOP STORIES
Nation's build-to-rent project Charlie Parker in Sydney's Parramatta where more projects are being located and built outside the CBD.
Exclusive

Foreign Capital Still Dominates BtR but Things are Changing

Marisa Wikramanayake
7 Min
Exclusive

Fortis Reveals Plans for Coveted Bowen Terrace Site

Taryn Paris
4 Min
Exclusive

Accor Deputy Delivers Verdict on Brisbane Games Hotel Shortfall

Phil Bartsch
6 Min
Qld Budget 2025-26 Brisbane City
Exclusive

Billions Promised, Now Deliver: Industry’s Qld Budget Verdict

Vanessa Croll
6 Min
Medium Density housing in NSW
Exclusive

NSW Budget ‘Groundbreaking’ $1bn Guarantee to Unlock Housing

Leon Della Bosca
7 Min
View All >
Lincoln Place Eagle Point Bowls Club and Clubhouse
Land Lease Communities

Lincoln Place Plots 209-Home Scheme on Gippsland Purchase

Leon Della Bosca
Lindfield SSD Resi EDM
Residential

North Shore $154m Apartment Play Tests Zoning Limits

Vanessa Croll
Residential

National Home Prices End Year on Record High

Lindsay Saunders
The median price for an Aussie home has topped $820,000 as values rise for the fifth month in a row...
LATEST
Lincoln Place Eagle Point Bowls Club and Clubhouse
Land Lease Communities

Lincoln Place Plots 209-Home Scheme on Gippsland Purchase

Leon Della Bosca
3 Min
Lindfield SSD Resi EDM
Residential

North Shore $154m Apartment Play Tests Zoning Limits

Vanessa Croll
2 Min
Residential

National Home Prices End Year on Record High

Lindsay Saunders
3 Min
Linic Property Group Saunton Jindalee
Residential

Linic Group Moves 43-Unit Jindalee Scheme Ahead

Leon Della Bosca
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/tenant-demand-shifts-south-sydney-south-west