A series of severe storms, including hailstorms, in recent months has led to a “leasing frenzy” among businesses looking to secure industrial properties, a commercial real estate firm has said.
According to Matthew Alessi of CBRE, a hailstorm that hit Sydney on 14 March has caused demand for industrial properties in the city to spike.
“Vacancy is already extremely tight (sub 2 per cent) in most Sydney markets, with this additional demand for space representing up to 20 per cent of vacant stock,” he said.
“Traditional industrial users were already finding it hard to secure suitable space, but with this further pressure on supply, we’re advising industrial users to start their property search as early as possible.”
A lot of this demand has come from businesses that specialise in repairing hail damage, particularly on motor vehicles, needing space urgently to accommodate the sudden influx of new work.
Mr Alessi noted that, among the leases recently signed, Action Smart Group moved plans to occupy a 725sqm property in Castle Hill, in a lease that was negotiated in just 48 hours.
Meanwhile, he said that Aussie Hail Pty Ltd has secured tenancies over two facilities: a 4,670sqm facility in Glendenning (pictured) at $150 per sqm net and another 2,200sqm property in Jamisontown at $100 per sqm net.
Other businesses to secure property in the city include Wizard Hail Repair Network, which has leased a 7,000sqm property in Wetherill Park at a gross rent of $140 per sqm.
This latest surge follows another severe storm on 20 December that caused widespread damage across a large swathe of Sydney’s metropolitan area, which Mr Alessi said caused over 35,000sqm of industrial space to be snapped up.
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.
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