A mix of 58 industrial and storage units in Southwest Sydney have drawn great interest from a wide variety of buyers, selling for a total value of over $17 million.
The units, ranging in size from between 18sqm and 174sqm at The Depot in Prestons, were purchased by small business occupiers and ‘mum and dad’ investors, with the current undersupply of quality industrial storage units fuelling the campaign.
This resulted in incredibly strong sales rates for the area, with prices reaching over $7,423 per sqm.
A national developer partnered with Colliers throughout the whole process, with the team of Fab Dalfonso, Rino Gazzera, John Tsoutsa and Kieran Tsipidis all involved with the campaign.
“2021 has set new benchmarks for the sector as leasing and investment demand reaches new heights. We are seeing this trend continue in 2022 as buyer demand continues to significantly outweigh supply,” Mr Dalfonso said.
“Although the project is complete, Colliers is still receiving strong interest in this development and anticipate that industrial units could yield returns of sub 4 per cent.” Mr Gazzera added.
There were two types of units on offer, which was one of the many reasons why the development was so popular. Industrial units ranging between 98sqm and 174sqm with an internal clearance of up to 7m, full container height roller doors and two to three car spaces were mainly sold off-the-plan, highlighting the weight of demand for this opportunity.
High clearance storage units between 18sqm and 43sqm did not have a mezzanine and attracted strong interest from small to medium business operators, established investors and new commers to the industrial asset class.
“Following the successful sale of the industrial units, we still have a large database of buyers who missed out on this opportunity and are eagerly searching for similar properties,” Mr Tsipidis said.
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