Austrans Logistics expands footprint with new A-Grade speculative warehouse at Bankstown airport

12 September 2023

Austrans, a prominent name in the national logistics and transportation sector, has successfully secured the last remaining speculative warehouse at Bankstown Airport.

The lease establishes a new prime industrial rent benchmark in Western Sydney.

JLL’s Peter Blade, Greg Pike, Bella Cass, and Adam Scimone negotiated the 7-year lease for Building 4B, 1 Kirby Place, spanning 14,615 square meters of premium warehouse and office space developed by Altis Property Partners.

This asset boasts a 6 Star Green-Star design and certification, an impressive 9-tonne point load capacity, substantial 20-meter awnings enhancing the A-Grade doors, a cutting-edge ESFR Sprinkler system, and an impressive 13.7-meter ridge height. Notably, the site’s 36-meter super awning and dedicated hardstand add further dimensions to its operational efficiency.

Austrans Managing Director, Greg O’Shea said, “We are thrilled to be increasing our footprint with such an important customer. The location, quality, plus design attributes are what ultimately attracted us to this building, and the team at JLL did an amazing job finalizing things within days of the first inspection – we couldn’t be happier.”

According to JLL Research, industrial rental growth remained strong in Q2 2023 in NSW, following a record year of growth in 2022. Despite record completions in 2022, the rental market continues to be driven by increasingly tight leasing availability.

JLL’s Head of Industrial & Logistics – Brokerage, Greg Pike said, “In the dynamic landscape of today’s industrial market, this benchmark-setting transaction is a reflection of the on-the-spot demand we’re continuing to witness. Rents remain strong for immediate vacancies in the Sydney market, with the lease being negotiated and signed within 72 hours.

“Industrial rents are soaring for sustainable warehousing. The demand for cutting-edge, environmentally conscious, and strategically positioned industrial spaces is on the rise. The Austrans-Bankstown Airport deal sets a new precedent, setting a new rental benchmark in Western Sydney at $280 per sqm net.

“Substantial growth of new local 3PL and transport providers in the market is a trend we continue to see, where locally owned operators are gaining market share due to their nimble nature and ability to adapt to a dynamic market,” said Mr Pike.

JLL Research recorded that the whole-market prime average rental rate for industrial assets increased for the tenth consecutive quarter, by 4.8% to AUD 225 per sqm p.a.. Over the past 12 months, the market average prime rental rate has increased by 24.1% (y-o-y), led by the Outer South West (35.6%) and the Outer North West (35.1%) precincts.

Lowe adds that there is also demand for boutique commercial and retail space in the South Melbourne area, so we’re expecting this project to come on to a market that’s growing strongly.”

Apartment retail sales prices are expected to range from $1,470,000 to $10,500,000. Commercial and retail sales prices are targeted at a rate of $12,500 per square metre.