A severe lack of industrial stock in traditional Sutherland Shire pockets has seen owner-occupiers and investors seek out new opportunities in nearby suburbs.
The Sutherland region is experiencing the tightest stock levels seen on record, with only three industrial buildings being sold so far in 2022. This supply shortage combined with sizeable price growth in inner suburbs like Taren Point, Caringbah and Kirrawee has seen alternative locations like Kurnell grow in popularity.
“The Kurnell industrial pocket has widely been perceived as a remote industrial location, however a shift in attitude has seen more industrial tenants and occupiers find solutions in this location, largely due to the affordability in rents and land prices,” Colliers Director of Industrial Edward McFarland said. “This is now becoming an industrial market of interest and is sought-after by local, national, and international tenants and owner occupiers.”
“Industrial land prices in Taren Point and Caringbah range from $2,500 up to $3,000 per square metre. If you look in an area like Kurnell, which is just a 10-minute drive from Taren Point, comparable land is around $1,500psqm,” Colliers National Director of Industrial Trent Gallagher added.
One opportunity currently on the market in Kurnell is a 7,122sqm industrial facility at 106-120 Tasman Street, which consists of 12 land titles.
It has a massive circa 97m frontage to Tasman Street and a total building area of approximately 4,847sqm. The site has future flexibility and multiple driveways providing good truck access, as well as an on-site car park and hardstand areas. Mr McFarland and Mr Gallagher are exclusively selling the property with $9 million price expectations.
“This is a rare opportunity to secure a large industrial block set over 12 land titles with an existing industrial facility within Kurnell. The opportunity will suit a wide audience of buyers such as investors, developers and owner-occupiers looking to secure a prime industrial property with holding income in a thriving and expanding industrial area,” Mr Gallagher said.
“The subject site is a substantial industrial land holding, which features a fully functional high clearance warehouse, office areas, allocated amenities, a large open yard area, multiple driveways for easy truck access and multiple on-site car spaces,” Mr McFarland said.
The development potential allows for a current height limit of 16m and a potential gross income of $585,000 per annum. Currently, the combined gross income is $278,181 per annum plus GST.
106-120 Tasman Street, Kurnell is for sale via an Expressions of Interest campaign ending Wednesday, 1st June 2022 at 4:00pm (AEST).
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