Outer Western Sydney is turning into a new hot spot for industrial leasing as Independent Living Specialists (ILS) move into Eastern Creek, New South Wales.
New data from CBRE showed core vacancy in the precinct has hit a record low of around 1.2 per cent, which is expected to shrink further this year.
Last year, more than 650,000 sqm was leased in the general area, with ILS having signed a 10-year lease for a 11839 sqm facility at a Dexus estate, located at 51 Eastern Creek Drive near major arterials.
CBRE’s Cameron Grier, Moshe Greengarten and John Micallef negotiated the deal, which exceeded the total volume of lease deals for 2019, and put 2020 leasing statistics miles ahead despite COVID-19 disruptions.
Cameron said many speculative developments were put on hold when the pandemic started.
“Combined with increased warehouse footprint demand from majority occupiers who are now required to hold more inventory, it put downward pressure on Sydney industrial vacancy rates, particularly in the outer west,” he said.
As further deals finalise, the market conditions in the outer west will continue to tighten rapidly.