ISSUE 176 | DECEMBER 2024 | 02 9630 8000 WWW.BAWDENS.COM.AU I N D U S T R I A L Industrial Land – Values in 2023 and 2024 Rental Arrears Survey Reveals SME’s in good shape in 2024 SME’s Keep Doing Deals in 2024 Industrial Market 2023-2024 Comparative Review
INSIDE THIS ISSUE OF INDUSTRIAL PROPERTY NEWS We observed land values in 2024 for the period of January to June decreased marginally as compared to 2023 for the period. ISSUE 176 | DECEMBER 2024 | 02 9630 8000 | PAGE 2 YMARKET INSIGHT SPECIAL Industrial Land – Values in 2023 and 2024 Bawdens is one of Sydney’s leading Industrial property agencies, specialising in the provision of Asset Management and Sales and Leasing services to Small Medium Enterprises (SME’s) private and high net worth individuals and investment groups. We recently released the results of research completed in relation to the value of serviced industrial land with a developable area of 2ha or less. Land values in 2024 for the period of January to June decreased marginally as compared to 2023 for the period. The research results are summarised below. The decline in values in 2024 reflected increased developer uncertainty associated with construction costs and the emergence of small strata unit supply in the outer north-west and south-west precincts. Holding costs are also challenging feasibilities, driven by increasing land taxes and non-bank lending rates. In the central west, land values were broadly unchanged with the region considered an “infill” location and sites retaining value due to scarcity of opportunity. Tony Youssef: Director Asset Management, Robert Ally: Director, Jack Perkins: Associate Director Asset Management and Terry Saba: Director
As Real Estate Agents and Property Asset Managers, we conduct ourselves based upon a commitment to our vision to simplify, adapt, lead and grow our corporate property services. Our mission to connect people, organise, maximise and transact corporate property has meant as a group of professionals we have continued to thrive. The reason we continue to be a growing company today is because we remain aware that our purpose is to proudly protect our clients and earn their honest appreciated trust and friendship. VISION To simplify, adapt, lead and grow our corporate property services PURPOSE To proudly protect our clients and earn honest, appreciated trust and friendship MISSION We connect people, organise, maximise and transact corporate property VALUES Integrity, Passion, Leadership and Trust Our Why’ Story ISSUE 176 | DECEMBER 2024 | 02 9630 8000 | PAGE 3 Vacancy by No. of Properties Vacant Properties Managed 1.3% Clyde 531m2 approx. Street Front Exposure • Rare street front opportunity • Dual drive access • 8 car parking spaces • Oversize container friendly shutter Terry Saba: 0416 175 009 Rishad Kharadi: 0405 732 041 Seven Hills 225m2 approx. Street Exposure Warehouse with Dual Driveway • E4 zoning • Truck access • Easy access to all major roads • Air-conditioned warehouse and office Lucas Rahmati: 0452 081 088 FOR LEASE FOR LEASE Simply search ‘Bawdens’ on Facebook. Like us on Facebook • Stay informed • Find out what transactions we have just completed • Be up to date with the current market offerings YLEASED BY BAWDENS NEWS Bengong Tea Pours into Holroyd Bengong Tea who take pride in providing customers with one of the best pure and innovative tea selections, have recently leased premises located at 8-10 Fox Street, Holroyd. The building of 1596m² on a site of 2090m² provides high power, plus three roller doors which were ideal in facilitating the business to continue their growth strategy. The deal was negotiated by Bawdens Associate Director Victor Zerefos for a term of 3+3 years with a commencing rental of $287,280.00 pa net reflecting $180.00 psm net + o/g’s & GST. If this is something that you would also like to receive please feel free to contact Peter Pacetta: 0416 001 509 COMMERCIAL Have you seen our new edition of
ISSUE 176 | DECEMBER 2024 | 02 9630 8000 | PAGE 4 Rouse Hill Baulkham Hills Silverwater Riverstone Somersby Auburn Pemulwuy Yagoona Seven Hills St Marys Bawdens Deals Done LEASED BY LEASED BY SOLD BY SOLD BY LEASED BY SOLD BY SOLD BY LEASED BY LEASED BY SOLD BY MARKET INSIGHT SPECIAL Rental Arrears Survey Reveals SME’s in Good Shape in 2024 Industrial Property News recently asked leading agents Bawdens to identify how business conditions are in 2024. The company completed a survey of rental arrears for a selected period in 2023 and again for the same period in 2024. The survey considered leases totalling some 1545 tenancies. The results can be seen as follows in the graph below. Rental arrears can be considered a barometer of the cash flow health of a business. In 2024 the survey identified that conditions have improved from 2023 as measured for the respective first quarter of each financial year. The graph reveals the total percentage of tenants with rentals that were 14 days or more in arrears has fallen substantially for each month comprising the quarter in 2024 as compared with 2023. Small Medium Enterprises (SME’s) appear to be prioritising cash flow and ensuring their business remain well capitalised in 2024, this is one of the key reasons why industrial vacancies remain at historic lows today.
ISSUE 176 | DECEMBER 2024 | 02 9630 8000 | PAGE 5 BAWDENS NEWS Introducing Paul Chidiac to the Sales & Leasing Team Bawdens is proud to announce the appointment of Paul Chidiac as the newest member of Sydney’s leading Corporate Property Sales & Leasing team. With 12 years of experience in residential real estate, Paul brings a wealth of knowledge and expertise to every interaction. At just 30 years old, Paul is passionate about advancing his career in commercial real estate and is determined to become the number one agent in the field. His goal is to provide exceptional service and results that exceed expectations. Simply search ‘Bawdens_RealEstate’. Like us on Instagram • Stay informed • Find out what transactions we have just completed • Be up to date with the current market offerings Website Enquiry Real Commercial Commercial Real Estate Google Other 33% 32% 12% 23% Seven Hills 677m2 approx. Freestanding Warehouse • High clearance • Good truck access • Modern air-conditioned office • Container access Terry Saba: 0416 175 009 FOR LEASE We currently support the following organisations: Charitable Foundation
ISSUE 176 | DECEMBER 2024 | 02 9630 8000 | PAGE 6 BAWDENS ASSET MANAGEMENT Skilled Asset Managers Manage Arrears and Protect Investments At Bawdens, our comprehensive arrears process is designed to proactively address tenant defaults to protect property owners interests. In a recent case Bawdens Director Joumana Tarabay swiftly identified a default through our meticulous monitoring system, which flagged the tenant’s arrears early. By acting promptly, we were able to engage with the tenant on an enforceable solution, culminating in the termination of the lease to mitigate further potential loss to the property owner. This allowed for a recovery plan to take effect quickly. Our structured approach ensured that all outstanding arrears were recovered from the tenant’s bond, the bond held equated to 4 months gross rent. Having a bond of this size enabled us to collect sufficient funds to complete the required make-good works and manage other re-leasing expenses, including marketing. With these costs accounted for, the property was positioned for immediate lease, ensuring minimal vacancy and uninterrupted income flow for the owner. This process exemplifies the effectiveness of both Bawdens’ arrears management and leasing team working efficiently together. Bawdens were able to secure a new lease with a stronger covenant with favourable terms. The new tenant offers a higher level of reliability and commitment, aligning with the owner’s long-term goals. This case underscores the value of Bawdens robust arrears process and dedication to achieving the best possible outcomes for our clients. YSOLD BY BAWDENS NEWS BRH Steel Strengthens up Additional Space in Riverstone Presently located around the corner from 41 Wellington Street, Riverstone, they have purchased this old-style freestanding warehouse of 417m² on a site of 930m². It was sold for $2,100,000.00 + GST ($5,035.97 psm). The deal was completed by Bawdens Senior Consultant Graeme Scott. For the latest media releases & market trends visit our website www.bawdens.com.au Space in demand 0-500m² 500m² - 2000m² >2000m² 39% 36% 25% Rydalmere 370m2 approx. Freestanding Warehouse • Multi-users including food processing • High clearance warehouse • 3 phase power • Good truck access Terry Saba: 0416 175 009 FOR LEASE
ISSUE 176 | DECEMBER 2024 | 02 9630 8000 | PAGE 7 Are you looking to sell your property in 2024? With a 100% success rate, utilising this method of sale you will achieve a price better than you expected, which will allow you to realise your new ambitions. Our In-Room auction facility delivers you the highest probability of an exceptional price. Let Bawdens present your property professionally and use our negotiation skills to deliver you the highest possible price. AUCTION WITH US Register your Interest: Call 9630 8000 or contact your preferred Bawdens Agent. Leasing or buying Leasing Buying 38% 62% FOR LEASE FOR LEASE Silverwater 1,130m2 approx. Freestanding Warehouse • Well-presented secured site • Ample power with 3 phase outlets • Versatile E4 industrial zoning • Truck and container access Monjer Khan: 0422 753 262 Jarrad Love: 0408 817 025 Wetherill Park 1,121m2 approx. Rare Workshop with High Exposure • Prime location • High clearance • Two large awnings • Four roller shutter doors Paul Chidiac: 0415 887 566 Lucas Rahmati: 0452 081 088 YLEASED BY BAWDENS NEWS Socrates Distributors Expands into Wetherill Park Socrates Distributors who are a family owned and operated food and beverage business have secured premises located at 15A Davis Road, Wetherill Park. The property being a duplex of 1304m² with an internal clearance of 7m together with excellent truck access allowed the business to continue its expansion. The deal was negotiated by Bawdens Sales & Leasing Negotiator Lucas Rahmati and Director Robert Ally for a lease term of 5+5 years with a commencing rental of $247,760.00 pa net reflecting $190.00 psm net + o/g’s & GST.
ISSUE 176 | DECEMBER 2024 | 02 9630 8000 | PAGE 8 www.linkedin.com/ company/bawdens Follow us on LinkedIn • Stay informed • Find out what transactions we have just completed • Be up to date with the current market offerings FOR LEASE Camellia 777m2 approx. Substantial-Sized Office In Prime Location • Fantastic value • Ample parking • Frontage and exposure • Popular complex Jarrad Love: 0408 817 025 Barry Cawthorn: 0417 288 975 BAWDENS ASSET MANAGEMENT Asset Management Vacancy Rate Office Industrial Retail 3.28% 0.59% 3.57% BAWDENS ASSET MANAGEMENT Bawdens use their e-cloud technology to complete behavioural marketing that identifies the buyers or tenants who will pay the highest price or rental. We are Sydney’s only Industrial Agency utilising behavioural marketing. MARKETING Asset Management – Renegotiating Favourable Lease Terms Senior Asset Manager Karson Evans and Asset Manager Anthony Tomic recently finalised a successful lease renewal for a property in Regents Park, marking a win for both the property owner and the tenant. Through careful and open negotiation, they secured a significant rental uplift from $110 psm net to $150 psm net on a 3 year term. This rental increase reflects both strategy and improved market conditions enhancing the overall value of the asset. Karson and Anthony were able to build on solid market analysis and long-term relationship management by leveraging up-to-date market evidence, they demonstrated the value of the property in line with current rates, allowing for a fair and competitive rental adjustment. Additionally, their continued strong relationship with the tenant fostered a constructive negotiation environment, where both parties were open to terms that would support the tenant’s ongoing occupancy while boosting the owner’s rental income. This outcome is a testament to the value of Bawdens commitment to effective asset management. By staying attuned to market shifts and cultivating strong tenant relationships, Karson and Anthony not only safeguarded the assets’ financial growth but also ensured stability for a valued tenant. Their diligent work reinforces Bawdens reputation for delivering superior client outcomes through proactive, market-driven lease management. FOR LEASE Brand New Warehouse For Sale • Air-conditioned mezzanine office • Brand new amenities • Parking at the door • Container high roller door access • Secured estate Monjer Khan: 0422 753 262 South Windsor 219m2 approx.
ISSUE 176 | DECEMBER 2024 | 02 9630 8000 | PAGE 9 SME’s Keep Doing Deals in 2024 Continuing our market analysis of Industrial Property in 2024, in this month’s Industrial Property News we asked leading Industrial Agents at Bawdens to identify what building sizes are currently the most popular to buy or lease. Of all transactions in the survey which included buildings sold or leased since July 1 2024, 60% had a lettable area of less than 500m2. Of all transactions, 9% had an area of between 500m2 and 1,000m2. Perhaps, not surprisingly, as there are fewer of them, only 6% of all transactions had a lettable greater than 1,000m2. Despite substantial increases in net rentals during the last year, total transactions were 2% higher than for the same period of July and August in 2023. In the next edition we examine how small to medium sized enterprises in 2024 are managing current business market conditions through the lens of rental arrears across our 850,000m2 of managed space. MARKET INSIGHT SPECIAL Seven Hills 170m2 approx. High Clearance Warehouse • Ground floor office/showroom and upper office • Bonus 100m² mezzanine storage and shelving • Container access • Easy access to Main Road Terry Saba: 0416 175 009 FOR LEASE Where it all came from Internet Bawdens IPN Signs Clients 30% 45% 4% 21% Simply search ‘Bawdens’ on YouTube. Subscribe to our YouTube • Stay informed • Find out what transactions we have just completed • Be up to date with the current market offerings
ISSUE 176 | DECEMBER 2024 | 02 9630 8000 | PAGE 10 AUCTION DAY No Marketing Costs* (T&C’s apply) Lower Selling Fees Higher Prices Thinking of selling? • Be part of our Auction Day Sale • Expose your property to one of the largest buyer databases in Sydney • Use our auction negotiation skills to achieve the sale price you want Register your Interest: Call 9630 8000 or contact your preferred Bawdens Agent. Vacancy Rate by m2 Vacant Properties Managed 1.2% FOR LEASE Industrial Factory • High clearance warehouse • Conveniently located • Easy access • Air-conditioned office Peter Pacetta: 0416 001 509 Riverstone 525m2 approx. BAWDENS ASSET MANAGEMENT Skilled Asset Managers Manage Large Scale Renovations Bawdens Asset Manager Khalid Pokar recently oversaw the successful completion of a roof replacement project in Riverstone. From start to finish, Khalid handled each stage with meticulous attention to detail, beginning with obtaining competitive quotes to ensure the owners received the best value. His guidance helped the owners make informed decisions on the optimal roofing solution for the property, balancing quality, cost, and durability. By advising them at every step, Khalid provided clarity and confidence throughout the project’s progression. In addition to coordinating with the contractors, Khalid maintained regular communication with the tenant, minimizing disruption to their operations and keeping them informed of timelines and progress. His diligence in managing schedules ensured the project stayed on track and met all critical deadlines, ultimately delivering a seamless experience for both the owners and the tenant. Khalid’s hands-on approach and commitment to excellence reflect Bawdens’ dedication to managing client assets with precision and care. Barry Cawthorn: 0417 288 975 | Robert Ally: 0413 758 658 If this is something that you would also like to receive please feel free to contact Have you seen our new edition of BEFORE BEFORE AFTER AFTER
ISSUE 176 | DECEMBER 2024 | 02 9630 8000 | PAGE 11 FOR LEASE Wetherill Park 1020m2 approx. Premium Duplex Warehouse with High Clearance • Close proximity to The Horsley Drive & M7 motorway • Truck and container access • Air-conditioned office • 3 phase power Lucas Rahmati: 0452 081 088 Paul Chidiac: 0415 887 566 Girraween 252m2 approx. Industrial Warehouse • Semi-trailer/container access • Easy access to main roads • 5 metres clearance • 3 phase power Terry Saba: 0416 175 009 Monjer Khan: 0422 753 262 FOR LEASE Our asset management team can maximise the value of your asset. Lease Negotiations Rent Reviews Outgoing Audit Transaction Management Make-Good Management YSOLD BY BAWDENS NEWS Sunfield Bakery Heats up in Silverwater Currently located in Sefton and requiring additional warehouse space for food processing have led them to purchase 13 Carnarvon Street, Silverwater. A 755m² freestanding warehouse on a site of 962m². The premise was successfully sold for $4,500,000.00 + GST ($5,960.26 psm). The deal was completed by Bawdens Senior Consultant Graeme Scott and Sales & Leasing Negotiator Monjer Khan. BAWDENS NEWS Praxis Business Park Demonstrates Strong Demand for Owner-Occupier Market With completion just around the corner, Praxis Business Park continues to highlight the strength and resilience of the owner-occupier sales market. These versatile units, designed to accommodate a wide range of business needs, vary in size from 368m² to 760m². Each unit features all-weather awnings, with select units offering secure, exclusive yard areas to enhance operational flexibility. 5 out of 10 units available have sold with another under contract. For further details or to arrange an inspection, please call Monjer Khan on 0422 753 262 or Robert Ally on 0413 758 658.
ISSUE 176 | DECEMBER 2024 | 02 9630 8000 Disclaimer Notice: Neither Bawdens, nor the publishers and editors of articles in this issue accept any form of liability, be it contractual, tortious or otherwise, for the contents of this newsletter or for any consequences arising from its use or any reliance placed upon it. All the information contained in this publication has been provided to us by various parties. We do not accept any responsibility to any person for it’s accuracy and do no more than pass it on. All interested parties should make and rely upon their own enquiries in order to determine whether or not this information is in fact accurate. Customised relevant marketing means maximum results. We are the only agency with real time database management. Instagram Facebook LinkedIn YouTube Simply search | PAGE 12 Industrial Market 2023-2024 Comparative Review We observed a 26% decline in the number of transactions completed in 2024 as compared to 2023. In 2023 Sales comprised 31.5% of all transactions. In 2024 Sales comprised 4% of all transactions. The amount of sales declined as confidence and the cost of money impacted the ambitions of would be owner occupiers. Notwithstanding this, prices have risen year on year (see issue 172 of Industrial Property News). Finally, we observed in 2023, 71% of all transactions comprised a building area of less than 500m². In 2024 68% of all transactions had a building area of less than 500m². Bawdens are one of Sydney’s leading Industrial Property Agencies specialising in the Sale and Leasing of industrial property, servicing the needs of small medium enterprises across the metropolitan area. At the commencement of each financial year, we consider various market metrics year on year. These include a review of the total number of transactions completed. How many transactions comprised sales and how many were leases, together with total amount of space leased below 500m² and above 500m² in area. The results are as follows. MARKET INSIGHT SPECIAL
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