According to Colliers, Sydney’s Kurnell is gaining popularity with investors because Sutherland Shire has a record low of stock with only three industrial buildings being sold so far this year.
The investment management company says owner-occupiers and investors are looking at nearby suburbs for available stock.
It adds that the supply shortage in the area combined with increasing prices in inner suburbs like Taren Point, Caringbah and Kirrawee has contributed to Kurnell’s popularity.
“The Kurnell industrial pocket has widely been perceived as a remote industrial location, however, a shift in attitude has seen more industrial tenants and occupiers find solutions in this location, largely due to the affordability in rents and land prices,” Edward McFarland, Colliers Director of Industrial, says.
“This is now becoming an industrial market of interest and is sought after by local, national, and international tenants and owner occupiers,” he adds.
Colliers notes one opportunity on the market in Kurnell is a 7122 sqm industrial facility at 106-120 Tasman Street, which consists of 12 land titles.
It says Edward along with Trent Gallagher, Colliers National Director of Industrial are selling the property and estimate investors will pay $9 million for it.
It notes the Kurnell property has almost 97 m frontage to Tasman Street and a total building area of approximately 4847 sqm with multiple driveways, making it easy for trucks to access as well as an onsite car park and hardstand areas.
“Industrial land prices in Taren Point and Caringbah range from $2500 up to $3000 per square metre,” Trent says.
“If you look in an area like Kurnell, which is just a 10-minute drive from Taren Point, comparable land is around $1500 sqm,” he adds.
“This is a rare opportunity to secure a large industrial block set over 12 land titles with an existing industrial facility within Kurnell.
“The opportunity will suit a wide audience of buyers such as investors, developers and owner-occupiers looking to secure a prime industrial property with holding income in a thriving and expanding industrial area.”
Colliers says development potential allows for a current height limit of 16 m and a potential gross income of $585,000 per annum while the combined gross income is $278,181 per annum plus GST.
“The subject site is a substantial industrial land holding, which features a fully functional high clearance warehouse, office areas, allocated amenities, and a large open yard area,” Edward says.
Colliers says 106-120 Tasman Street, Kurnell is for sale via an Expressions of Interest campaign ending Wednesday June 1, 2022, at 4:00 pm (AEST).
For more information on Colliers, click here.