For the past 17 years, BIS Shrapnel’s annual study on the Sydney industrial property market has represented the industry benchmark.

The latest edition, Sydney Industrial Property 2011 to 2021 provides a careful analysis of drivers of demand for and supply of industrial space and their implications for the leasing and investment markets. Based on our in-house forecasts of the Australian and NSW economies, we supply 10 year forecasts of demand for and construction of warehousing and factory space, then use the result as the basis for our forecast of rents, yields, capital values and prospective investment returns for prime, secondary and high tech property for Sydney’s four major industrial regions.

The current study finds the Sydney industrial market losing momentum after an initial rebound from the GFC-induced downturn. We answer questions such as who will take over from the big retailers now that their latest efficiency drive is coming to an end? What impact will a worsening of the European sovereign debt crisis have on demand for industrial space? How does the persistently high Australian dollar affect the manufacturing sector and its demand for factories? After successfully re-capitalising, the major A-REITs are back developing large projects. Will their dominance continue, will the concentration of ownership increase and what does this mean for the (pre-)lease market? Is there any room for smaller developers in a market where financial feasibility of construction remains elusive for most builders? How does the outlook for demand, rents and yields differ between prime, secondary and high tech space across the four major industrial regions? What impact do planning and the provision of infrastructure have on the choice of location and does Sydney have enough land to accommodate future development?

The study will be relevant to a wide range of industry participants, providing a valuable tool for developers, land owners, construction companies, investors, funds managers, lenders, policy makers at all levels of government and public sector corporations.

Beverley Taylor

PH: +61 2 8458 4245