Industrial sales uplift predicted

Industrial sales uplift predictedStrong retail trade and increased logistics activity will buoy Sydney’s industrial market, overcoming a flagging manufacturing sector, according to m3property Research’s Sydney Industrial Comm3ntary Winter 2014 report.Industrial property sales activity, having commenced the year slowly, is starting to see a lift in activity that is expected to strengthen further.The m3property report notes that, although retail stock levels have recently been driven down, a surge in retail trade will create more demand for industrial warehousing space.The report said that growth is likely to be largely driven by the high volume of export and import sales expected over the short term. The sector will also benefit from improvements in the domestic economy and residential construction.Investment market activity is anticipated to remain moderate over the short term as many landlords look to retain assets.Investment yields are forecast to tighten by 0.25 – 0.5 per cent across the Sydney sub regions over the next 12 months.In terms of sales activity, larger sales of more than $20 million dominated the total value and number of sales in NSW over the June 2013 to June 2014 period, and sales over the first half of 2014 (to mid-June) totalled more than $462.8 million.Find the m3property report here