Sydney to build multi-storey warehouses

Multi-storey warehouses

CBRE’s Nick Zenonos, Director, Industrial and Logistics and Nathan Egan, Managing Director South Sydney say a broad cross section of the market, including trade, automotive, and fashion wants multi-storey warehouses.

CBRE’s agents say they are seeing demand from these industries, as well as food and traditional e-commerce users in South Sydney asking for these facilities.

“The one thing these users have in common is a need to be located close to Sydney’s CBD, the eastern suburbs, and port infrastructure,” the CBRE agents say.

“In markets like South Sydney that are extremely constrained by supply, it goes a long way to solving this problem, getting more intense use of industrial land in in-fill locations,” they add.

CBRE notes a big part of sourcing tenants for clients is getting tenants comfortable with the product and the project as there are no existing multi-level buildings locally that they can visit.

“Traffic is a huge talking point on each of these properties,” the agents say. “Tenants want a full understanding of how they’ll receive and dispatch their goods.”

Nick and Nathan add that movements on site and how drivers will connect with the road infrastructure is also critical.

According to CBRE’s The Rise of Multi-Storey Warehousing report, there are 14 notable multi-storey projects in the pipeline for Australia’s largest city, including a 172,702 sqm LOGOS development at Mascot due to open in late 2026.

It expects more than 350,000 sqms of multi-storey warehousing space is expected to be developed in Sydney over the next five years as availability of zoned land shrinks.

“There will always be a place for single level industrial, but as demand for industrial land increases and alternative uses continue to encroach on existing industrial precincts – including residential, commercial, and infrastructure – there will be increased need to convert single level industrial sites to multi-level to service the demand,” the CBRE agents, say.

They add that we expect to see an increase in multi-storey warehousing in outer precincts such as the Outer North West and the Outer South West in the medium to long term.

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