ISSUE 173 | SEPTEMNER 2024 | 02 9630 8000 WWW.BAWDENS.COM.AU I N D U S T R I A L Industrial Market 2023-2024 Comparative Review Industrial Deals Slowing as Price and Rental Gains Consolidate Industrial Property Price Growth Continues in 2024 Rental Growth to Consolidate Against All-Time Vacancy Low
MARKET INSIGHT SPECIAL 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. INSIDE THIS ISSUE OF INDUSTRIAL PROPERTY NEWS ISSUE 173 | SEPTEMNER 2024 | 02 9630 8000 | PAGE 2 We observed a 26% decline in the number of transactions completed in 2024 as compared to 2023. 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. Tony Youssef: Director Asset Management, Jack Perkins: Associate Director Asset Management Terry Saba: Director and Robert Ally: 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 | PAGE 3 FOR SALE Strathfield South 1,357m2 approx. Corporate Headquarters • High internal ceilings with an abundance of natural light • Internal elevator • Basement car park with a 25 vehicle capacity • Fully fitted solar panels Anthony Barbanera: 0410 914 662 Robert Ally: 0413 758 658 YSOLD BY Leasing or buying Leasing Buying 38% 62% Brookvale 2,364m2 approx. For Sale: First Time In Over 3 Decades • Fabulous freehold site • High clearance warehouse (8-10.4m approx.) • Huge power supply • Opportunity for long or short term lease Barry Johnston: 0412 606 030 Barry Cawthorn 0417 288 975 Jarrad Love 0408 817 025 EOI BAWDENS NEWS Bawdens Contribution to Youth Homelessness Bawdens is committed to creating opportunities for our youth by supporting the Property Industry Foundation, which has been addressing homelessness for over 26 years. One of the Foundation's flagship projects, Haven House South Dowling, represents our dedicated involvement. Our contribution to Haven House will establish safe and secure spaces crucial for individuals to achieve their dreams. By uniting the property and construction industry, we aim to build homes for homeless youth and fund programs that support at-risk youth in rebuilding their lives.
Y| PAGE 4 Seven Hills Blacktown Strathfield South Northmead Smithfield Milperra North Rocks Wetherill Park Penrith Silverwater 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 Industrial Deals Slowing as Price and Rental Gains Consolidate In a recent end of 2024 financial year survey, completed by one of Sydney’s largest specialist industrial property agents, Bawdens, the company examined how many sale and lease transactions it completed each financial year. The firm identified all transactions completed each year for 2021-2022, 2022-2023 and 2023-2024. The results can be observed below: The survey revealed total deal volumes fell 14% during the 2022-2023 financial year from the previous. In the 2023-2024 financial year, deal volumes fell approximately a further 4%. Whilst deal volumes could therefore be at best described as static. The shortage of available space with an area of less than 2,000m2 to lease during the survey fell to a record low of 0.70% in the metropolitan area as of June 2024. This has driven the rental increase of over 40% during the survey period. Capital volumes, despite rising interest rates all grow substantially with average price growth exceeding 30%. In 2024-2025 we anticipate these gains will continue to be maintained and consolidated due to supply shortages, despite increasing volatility in business confidence for the year ahead.
YLEASED BY BAWDENS NEWS Zensteel Pty Ltd Strengthens up Additional Warehouse Space in Silverwater Securing the property on a 5 year + 5 year lease at 2/110 – 114 Asquith Street, Silverwater (located next door) at the asking rental of $146,520.00 net & GST ($220.00 psm) with no incentives. This deal was completed by Bawdens Director Terry Saba & Sales and Leasing Negotiator Jarrad Love. ISSUE 173 | SEPTEMNER 2024 | 02 9630 8000 | PAGE 5 BAWDENS ASSET MANAGEMENT Asset Management – Introducing Gohar Nisar Bawdens is delighted to announce the appointment of Gohar Nisar as Asset Manager. With a wealth of experience in end-to-end asset management, Gohar brings a proven track record in managing asset performance and delivering exceptional value. His expertise spans various facets of the industry, ensuring a comprehensive approach to managing and enhancing our portfolio. In his new role, Gohar will work closely with Director Tony Youssef collaborating on Bawdens’ Corporate Portfolio. This dynamic partnership is set to leverage Gohar’s deep industry knowledge and Tony’s extensive experience to drive growth and innovation. Together, they will focus on maximizing returns, implementing best practices, and fostering strong client relationships. Bawdens is confident that Gohar’s leadership will play a pivotal role in advancing our asset management capabilities and achieving our long-term strategic goals. Space in demand 0-500m² 500m² - 2000m² >2000m² 39% 24% 37% Seven Hills 379m2 approx. Street Front Opportunity • Air conditioned, corporate style office • Attractive street-front building • Ample parking • Ideal arterial road connectivity Monjer Khan: 0422 753 262 FOR LEASE Girraween 259m2 approx. Industrial Warehouse • Container access • Neat tidy unit • Easy access to main roads Terry Saba: 0416 175 009 FOR LEASE North Rocks 208m2 approx. Ideal Storage Facility • 2 entrances • Automated roller-door • 3 phase power • Clearances up to 6m Monjer Khan: 0422 753 262 Jarrad Love: 0408 817 025 FOR LEASE FOR LEASE Freestanding Factory In Prime Location • 100m to Rydalmere Ferry Wharf • Roller-door access • Close Proximity to Arterial Roads • Onsite Parking/Loading Area Jarrad Love: 0408 817 025 Terry Saba: 0416 175 009 Rydalmere 543m2 approx.
FOR LEASE ISSUE 173 | SEPTEMNER 2024 | 02 9630 8000 | PAGE 6 Vacancy by No. of Properties Vacant Properties Managed 1.2% 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. Freestanding Building On Secure Site • Ground floor office • 2 Driveways • 3 Roller Shutter Doors • Excellent yard area for loading & unloading containers Lucas Rahmati: 0452 081 088 Robert Ally: 0413 758 658 YBAWDENS ASSET MANAGEMENT BEFORE BEFORE Bawdens Project Management Bawdens Asset Management Team provides comprehensive project management services tailored to meet the needs of businesses during critical transitions. One example involves a furniture import business that needed to focus on its relocation while ensuring their previous premises were restored and handed over on time. The task was efficiently managed by Joumana Tarabay, Associate Director at Bawdens. Her expertise ensured that all aspects of the project, including the replacement of carpets, new paint, epoxy flooring for the warehouse, thorough cleaning, and the removal of tenant fit out, were executed seamlessly. The primary advantage of utilising Bawdens Project Management lies in their meticulous attention to detail and commitment to client needs. In this case, Joumana Tarabay coordinated every phase of the project, ensuring that all tasks were completed within budget and according to the specified timeline. Her adept handling of logistics and resources prevented any delays, which is crucial for businesses facing tight schedules. By managing everything from the removal of offices, racking, and machinery, Bawdens relieved the client from the stress of overseeing these extensive processes. Ultimately, the timely completion of the project not only met the lease expiry date but also avoided additional rent charges, showcasing Bawdens efficiency and costeffectiveness. Bawdens Project Management Team’s ability to deliver such projects on time and within budget makes them an invaluable partner for businesses undergoing transitions. Joumana Tarabay’s leadership and the team’s dedication highlights our reputation for reliability in project management, ensuring clients can focus on their core operations while leaving the intricate details in capable hands. AFTER AFTER Smithfield 820m2 approx.
ISSUE 173 | SEPTEMNER 2024 | 02 9630 8000 | PAGE 7 Rydalmere 1,001m2 approx. Secured Modern Freestanding Warehouse • Good truck access • Up to 5.5 metre clearance • Bonus storage mezzanine • Air conditioned office Terry Saba: 0416 175 009 FOR LEASE Our asset management team can maximise the value of your asset. Lease Negotiations Rent Reviews Outgoing Audit Transaction Management Make-Good Management YLEASED BY BAWDENS NEWS Spinning X Pty Ltd Spins and Expands in Penrith Spinning X who specialise in automotive panel beating have secured premises located at 29 Peachtree Road, Penrith. This freestanding building of 1,115m² on a site of 2,606m² was ideal to allow for their expansion within the same street. Lease term was 5 years + 5 years with a commencing rental of $192,500.00 pa net reflecting $172.65 psm + o/g’s & GST. The deal was completed by Bawdens Sales and Leasing Negotiator Rishad Kharadi and Associate Director – Sales and Leasing Anthony Barbanera. Where it all came from Internet Bawdens IPN Signs Clients 31% 44% 4% 21% Strathfield South 628m2 approx. “A” Class Freestanding Building • Prominent exposure • Corporate grade offices • Onsite kitchen/breakroom area • 11 onsite care spaces • Side lane access Anthony Barbanera: 0410 914 662 | Robert Ally: 0413 758 658 FOR SALE YSOLD BY EOI Two Premium Warehouses To Be Sold Together • Two units each have separate titles • Unit 8 provides 253m², plus parking spaces • Unit 6 provides 263m², plus parking spaces • Two roller doors, high clearance warehouse Victor Zerefos: 0416 047 288 James Zerefos: 0400 326 828 Kings Park 516m2 approx. FOR SALE/LEASE Lease Hold Title Until 2080 • High Clearance Warehouse • 5.5 interior clearance • 3 phase power • Airconditioned mezzanine office Terry Saba: 0416 175 009 Seven Hills 221m2 approx.
YSOLD BY ISSUE 173 | SEPTEMNER 2024 | 02 9630 8000 | PAGE 8 BAWDENS NEWS Blacktown – SOLD within 24 hours An older style low clearance warehouse being 215m² located at 3/23 Bessemer Street, Blacktown has been listed and sold within 24 hours on the market to an owner occupier for $950,000.00 + GST ($4,418.60 psm). This deal was completed by Bawdens Senior Consultant – Sales and Leasing Graeme Scott & Director Terry Saba. Smithfield 1,920m2 approx. Freestanding Office/Warehouse Facility • Two rollers with awning to allow for all weather loading & unloading • Secure site • Additional mezzanine storage of 146.5m² Robert Ally: 0413 758 658 Lucas Rahmati: 0452 081 088 FOR LEASE We currently support the following organisations: Charitable Foundation
ISSUE 173 | SEPTEMNER 2024 | 02 9630 8000 | PAGE 9 MARKET INSIGHT SPECIAL Industrial Property Price Growth Continues in 2024 In issue 169 of Industrial Property News, we observed that sales in 2023 declined sharply (92%) from volumes for the same period in 2022 as rising interest rates removed confidence. In 2024 sales volumes have recovered, up 150% over the same period in 2023. In this issue of Industrial Property News, we asked leading Industrial Property Agents at Bawdens to identify the sale rate per square meter for every sale transaction completed for the period January to May 2023 and then completed the same exercise for 2024. The results can be seen below. The surveyed transactions focused only upon secondary buildings with a building area of 250m²-1000m². The results revealed prices to have grown from an average of $3,792 psm in 2023 to $4,219 psm in 2024 a change of 11.2% year on year. FOR LEASE High Clearance Office/Warehouse Facility • Access via one (1) on grade roller door • Excellent truck access • Level forecourt for easy loading & unloading of containers • Mezzanine office is carpeted & air conditioned Lucas Rahmati: 0452 081 088 | Robert Ally: 0413 758 658 Wetherill Park 1,111m2 approx.
ISSUE 173 | SEPTEMNER 2024 | 02 9630 8000 | PAGE 10 Vacancy Rate by m2 Vacant Properties Managed 0.7% FOR SALE Somersby 160m2 -540m2 approx. New Industrial Warehouses in the Central Coast • Premier Industrial Complex • Invest or owner occupy • High internal clearance for all units James Zerefos: 0400 326 828 Victor Zerefos: 0416 047 288 For the latest media releases & market trends visit our website www.bawdens.com.au 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 Asset Management Vacancy Rate Office Industrial Retail 3.28% 0.59% 3.57% BAWDENS ASSET MANAGEMENT BAWDENS ASSET MANAGEMENT Skilled Asset Managers Negotiate Favourable lease terms The commercial real estate landscape is filled with both astute investors and sophisticated large corporations. All looking to negotiate favourable outcomes, for this reason the significance of having knowledgeable and skilled Asset Managers to negotiate lease renewals cannot be overstated. The expertise of Asset Managers can make a substantial difference in securing favourable terms for property owners and tenants alike. One case is Bawdens Director Tony Youssef’s recent negotiation on behalf of a valued private client with a national tenant who exercised their option to renew the lease. The rental, negotiated 5 years ago in a weaker property market was sitting at $137sqm net plus outgoings and GST. The increase achieved for our client was $200sqm plus outgoings and GST. This case highlights the critical role of experienced Asset Managers in navigating complex lease agreements. During the lease renewal process, the parties involved were initially at odds regarding the rental terms. This is a common occurrence that can lead to prolonged disputes and potential financial losses if not handled correctly. Tony’s approach involved thorough market research and strategic negotiations to bridge the gap between the tenant’s expectations and the clients’ requirements. By leveraging his extensive knowledge of market trends and rental values, Tony was able to present real time data that facilitated a mutually agreeable outcome. It is important to employ a skilled Asset Manager who possess a deep understanding of market dynamics and negotiation tactics. Their ability to conduct detailed market analysis, coupled with adept communication and negotiation skills, ensures that both landlords and tenants can achieve their objectives without compromising their interests. Tony’s ability to secure a fair and favourable lease renewal demonstrates the value that experienced Asset Managers bring to the table, fostering positive and productive landlord-tenant relationships and ensuring the long-term viability of commercial properties. EOI Stylish Boutique Self Contained Office • Nearby cafe’s and restaurants • Two (2) parking spaces • Two (2) balconies • Flexible mixed-use zoning Barry Johnston: 0412 606 030 Jarrad Love: 0408 817 025 North Sydney 107m2 approx.
FOR SALE ISSUE 173 | SEPTEMNER 2024 | 02 9630 8000 | PAGE 11 Strathfield South 993m2 approx. Outstanding Corporate Facility • Fully secured site of 1146m² (approx) • Flexible E4 general industrial zoning • 3 phase power • Upstairs and downstairs amenities Anthony Barbanera: 0410 914 662 Smithfield 481m2 approx. Industrial Warehouse • High clearance warehouse • 2 roller doors • Modern mezzanine office • Additional visitors parking space Terry Saba: 0416 175 009 Lucas Rahmati: 0452 081 088 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. 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 Website Enquiry Real Commercial Commercial Real Estate Google Other 38% 29% 11% 22% YSOLD BY BAWDENS NEWS Strathfield South Sold via EOI $10,200,000 An owner occupier has purchased 8-10 Gould Street, Strathfield South which is an exceptional quality freestanding building over two levels plus basement carpark. The building measured 1,357m² and was located right off the Hume Highway. This property was sold for $10,200,000.00 representing $7,516.58 psm. The deal was completed by Bawdens Associate Director – Sales and Leasing Anthony Barbanera. EOI
ISSUE 173 | SEPTEMNER 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 MARKET INSIGHT SPECIAL Rental Growth to Consolidate Against All-Time Vacancy Low With industrial rental growth approaching 30-50% in just two years, Bawdens recently identified what effects this has had on the amount of industrial property available for lease. Bawdens is one of Sydney’s largest Managers of property for small to medium enterprises and private investors within the industrial space. We took the opportunity to survey our 850,000m² property under management and observe how much of that space was vacant per square metre monthly, since July 2023. The results can be seen below: The results suggest that despite significant growth in rentals and outgoings, the amount of space available has trended down and decreased overall since July 2023 where 6,942m² was available until March where 5,800m² is available. Whilst the pace of net rental growth has slowed significantly since 2024, the rental growth experienced during 2022 and 2023 is not likely to be unwound with incentives in 2024 for space less than 3,000m² also remaining at an all-time low presently.
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