Dual Padstow Buildings on single title attract 80 enquiries ahead of auction

7 June 2024

Two industrial buildings on the one same title in Padstow attracted more than 80 enquiries before selling under the hammer for $3.05m in an auction campaign managed by LJ Hooker Commercial Bankstown.

Comprising two freestanding buildings totalling 660sqm across a 1,023sqm site, the property at 5 Arab Road Padstow attracted significant interest from occupiers and investors – both of whom had been starved of choice in the region, said selling agent Ryan Jennings.

“There’s a clear imbalance between market listings and demand through the South West’s industrial corridor,” said Mr. Jennings.

“The property is currently tenanted and presents a significant future opportunity for investors. It’s potentially under-rent by as much as 50% in the South West market where the vacancy rate is still sub-1%.

“It’s not common to have two freestanding properties on the one title up for grabs and the unique opportunity drove significant interest leading up to the auction.”

Mr. Jennings said the under-supply in the South west corridor showed little sign of easing. He said the strategic decision to auction the property – capitalising on the demand for good quality industrial – paid dividends for the seller.

“The sub $5m price point continues to be one of the hottest segments in the industrial market,” said Mr. Jennings.

While continued high inflation had pushed out expectations for many economists, Mr. Jennings said buyers and investors had adjusted to the current cycle and are still looking to transact on well-appointed and positioned assets.