Industrial property is seen as offering substantial growth, which has triggered the sale of seven sites in Illawarra, with an anticipated combined value of at least $50 million.
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The total site area of the seven properties, in Unanderra and Coniston, is about 103,302 square metres. They are being sold by a private investor.
According to the sales agents, Knight Frank's Ben Mostyn, Alex Jaafar and George Carydis, the tenants include the third party logistic (3PL) business of Toll, Australia Post, Patrick Autocare, Lawrence & Hanson and Global Coffee.
These businesses are considered the engines of growth pushing along the industrial properties as they are at the front line in delivering goods bought on the internet.
These transport and logistic industries all look for buildings to lease that are close to transport and infrastructure to ensure they can deliver as quickly as consumers now demand.
Goodman Group identified years ago that e-tailing would increase demand in the industrial property space for storage and efficient distribution.
Ben Mostyn, managing director, Illawarra, said it was the first time this much industrial property has been on the market in the area for a long while.
"Wollongong's industrial market is generally tightly held," Mr Mostyn said.
The growth in the region has also prompted department store chain David Jones to commit to a new store in GPT's Wollongong Central shopping centre.
"The Unanderra and Coniston areas are just 1.5 hours from Port Botany and the Sydney CBD, and just half an hour to an hour away from the major industrial areas of Sydney, with easy access along the motorway," he said. Coniston is opposite the port of Wollongong and BHP steel facility – ideal for industrial occupiers.
Alex Jaafar, Knight Frank's director, industrial, Liverpool, said they are expecting a lot of inquiries from Sydney, where the industrial market is tight. Knight Frank's latest research figures show Sydney's industrial vacancies are at a low, with Sydney recording a 2 per cent fall in vacancy over the first quarter of 2016 to 482,820 sqm.
Its report says that with a lack of options in inner-ring locations, coupled with a large number of sites being highly fragmented and not suitable for larger users, businesses are likely to be forced to look further afield for suitable premises.
"The generally positive outlook for the NSW economy is expected to see a continuation of the solid leasing activity," the report says.
"Demand has continued to arise from 3PL and consumer goods groups while there are a number of large briefs in the market which should crystallise into gross absorption throughout 2016.
"Given this growing lack of availability of industrial stock in Sydney, we're anticipating a lot of inquiry from Sydney owner-occupiers, investors and developers," Mr Jaafar said.
"These properties are ideal for those in the manufacturing sector across any industry, as they have the facilities including cranes and power supply to support this type of industrial occupier."
