Hannas receives green light for $73M vertical industrial estate in Sydney’s West

11 June 2024

Ushering in a new era of industrial design, leading Sydney developer Hannas has received the green light for its $73M vertical industrial estate in Sydney’s West, known as Stream Northmead.

Stream Northmead is one of the largest estates to come to market in terms of its offering and may be one of the last estates to come to market in the area, due to the scarcity of available land within Northmead.

Spanning three levels, the estate offers premium warehouses with mezzanine offices, as well as basement storage and has been architecturally designed to harness natural light and prioritise space.

Hannas Chief Operating Officer, Charlie Martin believes, “vertical industrial estates are the solution moving forward, with limited land leading more developers to go up.”

Currently, the Sydney vacancy rate remains the lowest in the country at 0.5 per cent and, according to CBRE, only 5 per cent of total industrial-zoned land in Sydney is undeveloped and serviced.

“Almost 40 per cent of the warehouses have been sold so far – a testament to the faith buyers have in Hannas to buy industrial off the plan,” explains Charlie.

“Demand has largely stemmed from owner-occupiers planning around a future lease expiration who instead want to occupy an owned-premise, while investors have been attracted to the opportunity to purchase within one of Sydney’s most tightly held industrial markets.

“Industrial is moving away from the heavy industry, manufacturing style we are so accustomed to, we are noticing a new wave of businesses now requiring warehousing space that wasn’t there before; this market has continued to gain momentum since 2020 and is largely driven by the e-commerce boom.

“Industrial now needs to adapt to meet these demands, businesses now want to be co-located with their business’ full operation, which will see more warehouses integrate mezzanine offices and amenities.

“There is also a lifestyle element where individuals are purchasing storage units and warehouses as a practical extension of their home. Some are using it to store cars, or wine, all while having an asset that can experience capital growth over time. It’s practical but also an investment,” he explains.

According to Parkside Commercial Real Estate, rents within Northmead have increased 32 per cent over the past 18 months and the value of strata warehouses have increased 54 per cent over the past five years alone, making industrial a lucrative investment opportunity for owner-occupiers and investors.

Stream Northmead comprises 34 warehouses with mezzanine offices ranging from 105sqm to 438sqm and 50 strata storage units ranging from 11sqm to 91sqm. The estate is located adjacent to the Westmead Health Precinct, Australia’s largest health and biomedical research precinct.

Hannas is leading the charge within Sydney’s industrial market, achieving record off-the-plan sales across its portfolio of projects and being one of only a handful of private developers to have industrial estates under construction in key growth areas including Sydney’s Northern Beaches.

Construction on Stream Northmead is due to commence in Q3 of this year and will take approximately 14 months to build.

For more information, please visit https://streamnorthmead.com/