ISSUE 178 | MARCH 2025 | 02 9630 8000 WWW.BAWDENS.COM.AU I N D U S T R I A L Rising Business Costs to Impact Rental and Price Growth in 2025 SME Industrial Outlook for 2025 Industrial Land – Values in 2023 and 2024 Rental Arrears Survey Reveals SME’s in good shape in 2024
INSIDE THIS ISSUE OF INDUSTRIAL PROPERTY NEWS We predicted a fall in the rental and price growth due to rising business costs. ISSUE 178 | MARCH 2025 | 02 9630 8000 | PAGE 2 Terry Saba: Director, Joumana Tarabay: Director Asset Management, Robert Ally: Director, and Jack Perkins: Associate Director Asset Management MARKET INSIGHT SPECIAL Rising Business Costs to Impact Rental and Price Growth in 2025 Falling business profit margins are likely to end the period of substantial growth in industrial rentals in 2025. In a SME tenant survey completed by leading industrial property agency Bawdens in 2024, respondents identified that substantial wages growth, coupled with substantial land tax increases, has resulted in a substantial increase in fixed costs to businesses. Many tenants recognised that, where possible, they would seek to negotiate downward their net rental in 2025. Bawdens Sales and Leasing Directors, Terry Saba and Robert Ally, also commented that when buildings for lease were offered at the correct market rental, tenant enquiries were sound. However, the lessors who accepted uninformed agent advice and listed their space for lease at the wrong rental, were experiencing an increased vacancy period. Not widely understood is that one of the key determinants of a business’ capacity to pay a rental is their profit margin. Growing productivity and GDP is necessary for the generation of business profit margin. With productivity and GDP both being challenged in 2025, rental growth is predicted to be subdued.
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 178 | MARCH 2025 | 02 9630 8000 | PAGE 3 YLEASED BY BAWDENS NEWS Rennova Pty Ltd. Sets Up in Guildford A building supply company Rennova Pty Ltd. have leased premises located at 343-345 Woodville Road, Guildford. The showroom/warehouse of 700m² on a site of 1,330m² approx. was ideal due to its main road exposure, onsite parking and rear yard space. The lease term was 5+5 years with a commencing rental of $120,000.00 pa gross + GST, equating to $171.00 psm. This strategic move was facilitated by Bawdens Sales & Leasing Executive Rishad Kharadi and Associate Director Anthony Barbanera. Arndell Park 146m2 approx. As New High Clearance Warehouse • Container access • Three (3) phase power • Undercover parking • Mezzanine office is air-conditioned and carpeted • Excellent truck access Rishad Kharadi: 0405 732 041 Monjer Khan: 0422 753 262 FOR LEASE 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. Asset Management Vacancy Rate Office Industrial Retail 3.28% 0.59% 3.57% BAWDENS ASSET MANAGEMENT
ISSUE 178 | MARCH 2025 | 02 9630 8000 | PAGE 4 Kings Park Baulkham Hills Padstow Clyde Seven Hills Guildford Riverstone South Windsor Rouse Hill Ryde 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 SME Industrial Outlook for 2025 Buildings utilised by Small Medium Enterprises (SME) are typically thought of as buildings comprising an area of less than 3000m². Leasing demand for these buildings in the last calendar quarter of 2024 remained patchy, weakened by falling consumer spending which in turn impacted the expansion plans of some businesses. Not withstanding this we observe that businesses have adjusted to expectations that interest rates may remain higher for longer, resulting in increasing vacancy periods and days on market in 2025 as enquiries take longer to make a decision. As for 2024, 2025 will see a continuation of the shortage of buildings available to purchase below 6000m². This is expected to result in prices remaining unchanged throughout the year. In 2024 SME vacancy in core locations remained at historic lows of sub 1%. This is expected to soften with vacancy to increase to 1.5% – 2% throughout the year. The rate of rental growth in 2024 slowed as the year progressed. In 2025 this is expected to continue as the vacancy rate increases. Rental Growth in the order of 3% – 5% is likely with effective growth in some locations likely to be flat as incentives increase.
ISSUE 178 | MARCH 2025 | 02 9630 8000 | PAGE 5 BAWDENS ASSET MANAGEMENT Introducing Sarah Cha – Senior Asset Manager Bawdens is excited to welcome Sarah Cha as our newest Senior Asset Manager. With extensive experience managing institutional-grade assets, Sarah brings a depth of knowledge in end-to-end asset management that will greatly benefit our clients. In her previous role, she oversaw a portfolio exceeding 250,000m² demonstrating her ability to manage complex assets with strategic oversight and operational efficiency. Her expertise in budgeting, lease negotiations, and relationship management aligns perfectly with Bawdens’ commitment to delivering outstanding results for our clients. Sarah’s strengths extend beyond traditional asset management. Her ability to build strong tenant relationships and execute long-term strategies ensures that properties under her management perform with minimal arrears and are well maintained. As Bawdens continues to grow, Sarah’s expertise will be instrumental in ensuring that our clients receive best-in-class asset management services tailored to the ever-evolving property market. 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 Girraween 225m2 approx. Industrial Warehouse • Refurbished air-conditioned office • Good truck access • Motorised roller door • 3 undercover parking spots Terry Saba: 0416 175 009 Monjer Khan: 0422 753 262 FOR LEASE Leasing or buying Leasing Buying 33% 66% Brand New Quality Industrial Facility With Exclusive Yard • Between 477m² to 1889m² (approx.) • 8m wide roller door • Iiternal clearance 9.5m to 10.5m • Exclusive yard for added flexibility Robert Ally: 0413 758 658 Monjer Khan: 0422 753 262 FOR LEASE Rouse Hill Thornleigh 560m2 approx. Versatile Industrial Unit • Street-front • 9 onsite car spaces • Loading dock for easy loading/ unloading • Kitchenette/staff area • Mezzanine for additional floor space Jarrad Love: 0408 817 025 FOR SALE/LEASE For the latest media releases & market trends visit our website www.bawdens.com.au Peter Pacetta: 0416 001 509 If this is something that you would also like to receive please feel free to contact Have you seen our new edition of COMMERCIAL
ISSUE 178 | MARCH 2025 | 02 9630 8000 | PAGE 6 Seven Hills 696m2 approx. Premium Exposure Yard With Office • DA Approved for Car Showroom • Air-conditioned office • Onsite amenities • Approved wash bay/grease trap • Fits 30-40 cars Jarrad Love: 0408 817 025 Terry Saba: 0416 175 009 FOR LEASE 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 Space in demand 0-500m² 500m² - 2000m² >2000m² 43% 38% 19% BAWDENS NEWS Fusion Imports Ships into Rydalmere Fusion Imports & Exports have leased 18 Euston Street, Rydalmere, an older style refurbished freestanding warehouse. Comprising of a total area of 1,001m², this building was secured on a 3 + 3 year lease with additional one month offered as an incentive for an annual rental of $185,000.00 pa net + outgoings & GST reflecting $185.00 psm. The deal was completed by Bawdens Director Terry Saba and Sales & Leasing Executive Jarrad Love. YLEASED BY Our asset management team can maximise the value of your asset. Lease Negotiations Rent Reviews Outgoing Audit Transaction Management Make-Good Management Smithfield 629m2 approx. High Clearance Warehouse • Container friendly • 7 onsite car spaces • Truck access • Fully air-conditioned office Anthony Barbanera: 0410 914 662 Lucas Rahmati: 0452 081 088 FOR LEASE FOR SALE Arndell Park As New Industrial Units • High clearance warehouse • Excellent truck access • Three (3) phase power • Motorised roller door • Close to major roads – M4 Motorway and Great Western Highway Lucas Rahmati: 0452 081 088 Paul Chidiac: 0415 887 566 153m2 - 271m2 approx.
ISSUE 178 | MARCH 2025 | 02 9630 8000 | PAGE 7 Arndell Park 265m2 approx. Modern Industrial Unit • Air-conditioned office • 6.5m clearance • Clean estate • Great truck access • Onsite amenities Rishad Kharadi: 0405 732 041 Jarrad Love: 0408 817 025 FOR LEASE Vacancy by No. of Properties Vacant Properties Managed 1.2% 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 YBAWDENS NEWS SOLD BY Airzone Mechanical Expands its Reach in Kings Park We currently support the following organisations: Charitable Foundation Airzone Mechanical, an NSW based mechanical services company with over 22 years of experience, have recently purchased premises located at 6+8/15 Valediction Road, Kings Park. The combined unit area of 516m², with two roller doors allowed their business to continue the expansion growth. The property was sold for $2,500,000.00 gross + GST reflecting $4,845.00 psm. The deal was successfully completed by Bawdens Associate Director Victor Zerefos and Sales & Leasing Executive James Zerefos.
ISSUE 178 | MARCH 2025 | 02 9630 8000 | PAGE 8 FOR LEASE Wetherill Park 1,121m2 approx. Rare Workshop with High Exposure • Prime location • High clearance • Two (2) large awnings • Four (4) roller shutter doors Paul Chidiac: 0415 887 566 Lucas Rahmati: 0452 081 088 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 Refurbished Warehouse • Good truck access via motorised door • Air-conditioned office • Located just off Victoria Road • 3 car spaces • Epoxy seal floors Terry Saba: 0416 175 009 Jarrad Love: 0408 817 025 LEASED Website Enquiry Real Commercial Commercial Real Estate Google Other 26% 21% 43% 10% BAWDENS ASSET MANAGEMENT Bawdens Asset Management – New Appointment Bawdens Director Ben Rodriguez is pleased to announce our latest appointment to manage a prime 5,478m² industrial asset in Seven Hills. Situated on an expansive 11,810m² landholding, the property comprises of two tenancies. Ben Rodriguez’s team consisting of Karson Evans and Anthony Tomic are committed to applying proactive management strategies to maintain strong occupancy, enhance asset value and drive long-term returns for our client. This appointment is a testament to the trust and confidence placed in Bawdens by our long-term, valued client. As we continue to exclusively manage their growing portfolio, we remain focused on delivering expert asset management solutions tailored to their investment objectives. Our ability to navigate market conditions, implement value-adding strategies, and foster strong tenant relationships has reinforced our role as a trusted partner in managing high-quality industrial assets. Bawdens’ expanding presence in Western Sydney’s industrial sector highlights our deep market expertise and commitment to excellence in asset management. With a dedicated team overseeing this Seven Hills property, we look forward to strengthening our partnership with the client while ensuring the continued success of their investments. North Parramatta 195m2 approx. YLEASED BY
ISSUE 178 | MARCH 2025 | 02 9630 8000 | PAGE 9 Silverwater 196m2 approx. Street Front Building With Exposure • Good truck access + turn area • Ideal for storage • Close to M4 • Secure site • Wide drive Monjer Khan: 0422 753 262 Rishad Kharadi: 0405 732 041 FOR LEASE Auburn 474m2 approx. Hi-Tech Warehouse • Refurbished office space • Great truck access • Easy access to main roads • On-site amenities • Three (3) phase power Rishad Kharadi: 0405 732 041 Jarrad Love: 0408 817 025 FOR LEASE MARKET 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.
ISSUE 178 | MARCH 2025 | 02 9630 8000 | PAGE 10 FOR LEASE Quality Freestanding Warehouse • Secured site • Clear span warehouse area • E4 General Industrial Zoning • Large vehicle marshalling area • Air-conditioned and carpeted mezzanine office Victor Zerefos: 0416 047 288 BAWDENS ASSET MANAGEMENT Vacancy Rate by m2 Vacant Properties Managed 1.2% Yennora 315m2 approx. High Quality Unit With Exposure • Excellent truck access • High clearance warehouse • Wide roller door • Secure site • Air-conditioned mezzanine office Lucas Rahmati: 0452 081 088 Rishad Kharadi: 0405 732 041 FOR LEASE Brand New Quality Units • Quality high clearance warehouse • From 368m² to 676m² (approx.) • Container height roller door • Internal clearance 7.5m to 8.6m • Some units with exclusive yards Robert Ally: 0413 758 658 Monjer Khan: 0422 753 262 FOR SALE Rouse Hill Introducing Shubham Chaudhry – Senior Asset Manager Bawdens is pleased to welcome Shubham Chaudhry to our Asset Management team, bringing valuable experience from his time working on major accounts such as the City of Sydney and Qantas. His background in managing large-scale assets and high-profile portfolios has equipped him with a strong understanding of end-to-end property management, financial management, and client engagement. Now shifting his focus to the SME market, Shubham is eager to apply his expertise to deliver tailored solutions that drive value for Bawdens clients. Under the leadership of Director Joumana Tarabay, Shubham will play a key role in managing Bawdens’ growing portfolio, ensuring each asset is optimised for long-term success. His ability to negotiate lease terms, maintenance, arrears management and financial management will provide significant benefits to our clients. His experience in working within structured corporate environments gives him a unique perspective on streamlining operations and enhancing property performance at every stage. We are excited to have Shubham on board as we continue to expand our asset management capabilities. His strong analytical skills, proactive approach, and commitment to delivering results makes him a valuable addition to the team. Smithfield 955m2 approx. Peter Pacetta: 0416 001 509 If this is something that you would also like to receive please feel free to contact Have you seen our new edition of
ISSUE 178 | MARCH 2025 | 02 9630 8000 | PAGE 11 BAWDENS NEWS Granville/Clyde Tops up at $6,783 psm Top Idea Private Limited, who are in Kings Park, have purchased additional warehouse space at 35-37 George Street, Clyde. This building being an older style freestanding warehouse of 373m² was sold for $2,530,000.00 + GST reflecting $6,783.00 psm. The deal was completed by Bawdens Senior Consultant – Sales & Leasing Graeme Scott. YSOLD BY 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. Where it all came from Internet Bawdens IPN Signs Clients 28% 3% 18% 51% FOR LEASE Wetherill Park Premium Duplex Warehouse with High Clearance • Close proximity to The Horsley Drive & M7 motorway • Truck and container access • Air-conditioned office • Three (3) phase power Lucas Rahmati: 0452 081 088 Paul Chidiac: 0415 887 566 510m2 approx. Rydalmere 227m2 approx. Street Front Opportunity • Front unit in modern complex • Carpeted and air-conditioned offices • Amenities on both levels • Rare opportunity Terry Saba: 0416 175 009 Jarrad Love: 0408 817 025 LEASED YLEASED BY Seven Hills 357m2 approx. High Clearance Warehouse • Air-conditioned office • Container access • 3 phase power • Zoned IN1 Terry Saba: 0416 175 009 Monjer Khan: 0422 753 262 FOR LEASE
ISSUE 178 | MARCH2025 | 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 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.
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