Competition for industrial rentals in Sydney’s South-West is now akin to the residential market, according to LJ Hooker Commercial Macarthur Director Aaron Ward.
“In a tight market, you’ll normally have a week to a few weeks or month between the old tenants vacating and the new tenant moving in,” said Mr Ward.
“But there’s been some instances of new tenants showing up for the keys to the property on the day the former tenants are moving out, like you’d see in residential tenancies.
“I’ve never seen the market as tight as this in the 20 plus years I’ve been working in the Macarthur Region.”
Rents have typically risen 40-50% in the Outer West Sydney market over the last five years on the back of demand, said Mr Ward.
In a display of demand, LJ Hooker Commercial Macarthur recently found a new tenant for an industrial property in Blaxland Road, Campbelltown, by contacting a single enquiry in their database which they identified as the best user for the property. The 2,022sqm facility, which includes a 400sqm warehouse, was perfect for a hire company, offering prime exposure on one of Campelltown's high-traffic roads.
Mr Ward knows the Blaxland Road address well, having first sold the property in 2002 to the current owner. The new tenant has signed a long-term lease, acknowledging how suitable the property is for their business.
“Its street exposure, warehouse and hardstand facilities were perfectly suited to a hire outfit, and after one inspection we had terms and lease signed shortly after,” he said.
The Blaxland Road address is part of LJ Hooker Commercial Macarthur’s asset management portfolio, which has now grown to exceed $1bn in combined value throughout Sydney’s South West corridor.
LJ Hooker Commercial Macarthur has grown the portfolio by becoming trusted advisers for their clients.
“Rents have been surging for some time now on extremely tight vacancy rates, so market conditions have been the main determinant of returns for landlords,” said Mr Ward.
“Where we add value is advising the client on the highest use of their assets, improvements that will generate interest from blue-chip, long-term tenants, and ensuring the terms of leases complement the wider wealth creation strategies they’ve developed with their accountants, financial planners and other advisers.
“Being on-the-ground in the market, we’ve developed relationships and accrued knowledge that allows our clients to act with confidence, irrespective of whether their interests are in industrial, office or retail.”
Read more in our Commercial Magazine here and find all the latest commercial property listings for sale and lease.
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