Flight-to-quality sees Hannas achieve record off-the-plan rates for northern beaches’ industrial estate

11 April 2024

Sydney developer Hannas has achieved record off-the-plan sales for warehouses and storage units within its $75M Rockwater Brookvale project as ‘flight-to-quality’ seeps into the Sydney industrial market.

Located in one of Sydney’s most sought-after locations, over 65 per cent of warehouses within the premium estate have sold with warehouse sales achieving rates up to $11,000/sqm and storage units achieving up to $13,500/sqm.

The estate is also one of the only new industrial projects to start construction within Sydney’s northern beaches this year – following the recent appointment of Sydney-based builder Buildland – and will take approximately 12 months to complete.

Currently, the Sydney vacancy rate remains the lowest in the country at 1.4 per cent, and according to CBRE, only 5 per cent of total industrial-zoned land in Sydney is undeveloped and serviced. The lack of available land is particularly evident in the inner precincts, where these areas are becoming more sought after as ‘last mile’ hubs.

“The Northern Beaches/North Shore industrial market is so tightly held with very little available land, this is putting pressure on demand as buyers and tenants are fighting for the same stock which ultimately has an impact on industrial rents and land value,” said CBRE Director of Industrial & Office Parks for NSW, Francesco Princi.

“This particular market offers great accessibility to main arterial roads, affluent residential suburbs and superb local amenity for industrial occupiers.”

Situated on Old Pittwater Road in Brookvale, Hannas’ industrial estate is located just 500m from the newly renovated Westfield shopping mall, just 4km from the iconic Curl Curl and Manly beaches and 30 minutes from the Sydney CBD.

Architecturally designed by Rothelowman, Rockwater Brookvale includes two levels of premium warehouses with high-end mezzanine offices and basement storage units. Upon completion, the estate will feature 34 modern warehouses, ranging from 99 – 261sqm and 45 storage units, ranging from 15 – 173sqm.

Hannas CEO Danny Hanna said Rockwater Brookvale will be one of the only new premium industrial estates to start construction within the Northern precinct this year.

“To achieve record rates as we have is unheard of for the northern beaches and is not only reflective of the current state of the market but is a testament to the loyal Hannas customer base and the team’s vision, as these rates were achieved prior to any construction commencing.

“The flight-to-quality that is taking the commercial sector by storm is also evident in the industrial sector; purchasers are seeking premium work experiences not traditionally found in industrial estates, one that is beautifully designed and integrates warehousing, modern offices and storage,” he said.

A pioneer within the industrial sector, Hannas’ success is underpinned by its vision to modernise industrial development by taking the same aesthetic and premium style as residential projects and applying it to industrial. This approach saw Hannas achieve record rates for its Arc Lane Cove project in Lane Cove West in 2022, with all warehouses and storage units sold completely off-the-plan.

Rockwater Brookvale is Hannas’ latest industrial estate, following the successful completion of Arc Lane Cove late last year and Bluestone Industrial Estate in Greystanes in 2021. Hannas also revealed its plans last month for one of the largest parcels of industrial-zoned land to be brought to market within Byron Bay in over three decades.