Industrial business is booming in Sydney’s outer west

 

The Electrolux Home Products facility atCasula’s Crossroads Logistics Centreincludes around 20,000 sqm of warehouse and 3,000 sqm of office space, and will be home to around 180 employees.

Mike Putt from Electrolux says the move was both “strategic and necessary”. 

The site’s “superb” location in Sydney’s expanding south-western suburbs and the increased accommodation provides opportunities for “our growing business”.

Putt says the Casula premises would house the company’s national contact centre and its NSW logistics and sales operations. An “experience centre” within the facility will “enable us to conduct retailer and consumer product training and demonstrations of our domestic appliance technologies”.

Crossroads Logistics Centre is owned by investors in the AMP Capital Diversified Property Fund and, once complete, will accommodate roughly 80,000 sqm of warehouse and office space across three precincts.

More than 380 people now work at the precinct, and more than 640,000 sqm has been leased to date, says AMP Capital’s head of industrial investment and development management, Andrew Quade.

“By building a site to suit the purpose of our customers, we are better able to support the success and visions of these businesses, establish them in areas where we see solid growth potential and at the same time, help them build a workplace that meets the needs of their customers and workforce,” Quade says.

The success of this precinct reflects the strong leasing fundamentals of the Sydney industrial market.

AMP Capital’s real estate research team has found more than 882,000 sqm of space was taken up in the Sydney industrial market over the previous financial year – 15 per cent above the long-term average.

In the outer south west of Sydney, more than 280,000 sqm was leased over the 2017 calendar year. AMP Capital says 2018 is “showing robust leasing activitywith 120,000 sqm of deals recorded to date”.

Rental growth conditions remain positive, reflecting strong absorption conditions in the outer south west. Inthe second quarter of 2018, prime net face rents grew by one per cent year on year. 

Low supply levels, coupled with strongdemand from next generation industrial tenants in the technology and logistics sectors, will be positive driversof rental growth in the region over the short to medium term, AMP Capital says.

AMP Capital is speculatively developing a 10,000 sqm facility in the outer south west, due for completion in early 2019.