Demand for industrial space expected for the North West
After being cited as a ‘growth area’ by the government in the infrastructure plans of the 2014-25 NSW Budget, demand for industrial space in the North West is expected to grow. Recent Preston Rowe Paterson reports suggest there have been significant leases signed to industrial properties over 1,000sqm in the rental market. Macquarie Park emerged as a strong area; observed market rents for the North West industrial region are around $110psm while Macquarie Park is recording $270psm.
Currently undergoing construction, the ‘Sydney Business Park’ at Marsden Park is one location thought to become the new industrial hub for Western Sydney. With big name brands such as Ikea, Bunnings, Costco, Masters, Shell and McDonalds it’s no surprise the new Marsden Park complex has high expectations. Construction on Richmond Road, just off the M7, has begun for a number of tenants with some expected to move in from June 2015. The Ikea site is 76,000 square metres, about four times the size of the Sydney Cricket Ground, inclusive of a showroom, 450-seat restaurant, children’s play area, market hall and 850-vehicle car park (Daily Telegraph). In addition, there will be an upgrade to Richmond Road stretching from Blacktown to Hawkesbury.
The Sydney Business Park is equipped with superior telecommunications, infrastructure, high standard landscaping, central amenities and cutting edge green technology combining design and environmental sustainability in a convenient and efficient location with access to Sydney road, rail and port network (Sydney Business Park). With an end value of approximately $2billion, the 256 hectare development appeals to a diverse range of businesses due to flexibility, floor space and the ability to co-locate a head office, manufacturing facilities, warehousing and retailing operations under the same roof in Sydney (Ferret). Sydney Business Park will also include rainwater harvesting, recycled water, water-sensitive urban design, alternate energy sources, waste management and minimisation features (Ferret).
The North West region is one to watch for the industrial market as it continues to grow and we endeavour to update on this area further.