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South Sydney to become new logistics hub

The demand for hot property in South Sydney is showing no signs of slowing as the world adjusts to a new covid normal. The surge for properties in the area has been led by creative sectors at the smaller end of the market, while fast moving transport occupiers are driving tenant demand at the larger end.

The location has been so popular due to its proximity to the CBD, Port Botany and the surrounding population and has benefited from occupiers seeking last mile logistics space.

Colliers Industrial National Director Trent Gallagher said the industrial market was the strongest he had ever seen it – with record prices being paid for properties daily.

“The leasing market is also very strong with a lot of businesses doing very well in the current climate,” he said.

An industrial warehouse in Kingsgrove has recently come back on the market – and is expected to sell for $16 million with the current demand.

The property, located at 14-26 Commercial rd, has 4850 sqm of space over seven titles with an existing two-level building on site and is located just 100m from Kingsgrove train station.

“This is a huge property with a massive footprint over two levels, ideal for owner occupiers or investors,” Trent said.

Research by Collier’s has also found both occupier and investor demand for industrial space in Sydney remains strong despite broader economic headwinds, with online sales growing by 60 per cent across the country in 2020.

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