26 | Insights H1 2025 John Henry of Commercial Penrith says recent sales demonstrate strong rates being achieved in the area, with a ground-floor office selling for $6,031 per sqm, and a strata industrial unit in nearby Emu Plains fetching $4,814 per sqm, setting a new record for the complex. “The industrial property market, which showed resilience during the pandemic, has showed signs of stabilisation,” says John. “Factors such as increased interest rates, challenges in the construction sector, and declining consumer confidence are impacting the market.” However, John adds that industrial space remains undersupplied, with rising construction costs and delays continuing to limit new supply. “There is also growing demand for smaller industrial facilities,” he notes. Looking ahead, John says local small business significantly impacts leasing and sales transactions by influencing demand. “When small businesses are operating well, they are more likely to expand, leading to increased demand for space and favourable leasing terms,” notes John. “Equally, negative sentiment can cause businesses to downsize, or close, reducing demand and prompting landlords to offer concessions or lower rents.” Penrith Office Industrial Retail Rents p/m² Vacancy Yields Rates p/m² Six-month market outlook Office Industrial Retail Rents p/m² $350-$400 $175-$220 $600 Vacancy 10-15% <5% <5% Yields <7.5% 4.5-5% 5.5-6% Rates p/m² $6,000 $4,000-$5,000 $8,000-$10,000 Current market conditions $860,000 40 Nineteenth Street, Warragamba Recent Notable Transactions SOLD $320,000 p.a. + GST 37 Bromley Road, Emu Plains LEASED John Henry john.henry@rhc.com.au For more information, contact:
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