Property News October 2018
Where are we at with the Sydney Industrial market?
*Sydney-Warehousing and storage are currently the key asset types for Sydney industrial. Good quality, functional office space is being seen as a requirement for most owner-occupiers and tenants.
*The trend for industrial strata development is a higher number of smaller units as opposed to a smaller number of larger units.
*Infrastructure projects have been driving demand for industrial properties and land. There is much speculative buying happening, especially in the western Sydney region.
*Generally, the industrial market in Sydney has been through substantial growth over the past 18 to 24 months as a result of increased demand for good investment assets, growth in rental income and increased demand from owner-occupiers, self-managed super funds and developers.
Property Acquisition (Owner Occupier)
Price Range: $4,600,000
Locate Negotiate were engaged by their client to carry out research, due-diligence for an industrial property which was being marketed by way of Expression of interest. Key areas investigated were market price (taking into account comparable sales and current rate per sqm) building integrity, potential and compliance.
Locate Negotiate advised their client the need to utilise some other key building and development professionals to complete a thorough assessment of the property.
The client accepted that there was additional due-diligence required. Locate Negotiate engaged, co-ordinated and project managed these professionals to carry out their research.
The professionals included a Project Manager Builder to access condition of the building, BCA (Builder certifier) to check compliance i.e. fire rating, disability access etc, and a Town Planner to access future potential to re-develop and potential zoning restrictions.
Locate Negotiate were able to advise their client on a fair market price to submit before the Expression of Interest closed. (Taking into account that there was a strong possibility that there would be a considerable amount of work required to make the building compliant).
Locate Negotiates’ client purchased the building which was well under the estimate the selling agent was quoting. Happy customer!