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Industrial prices look to exponentially rise off the back of historic Qantas deal

21 Marigold Street Revesby

The South West Sydney industrial market is tipped to benefit greatly from the record-breaking $802 million Qantas sale.

A new era of multi-warehousing is set to push prices for industrial development sites across Sydney sky-high, as the impact of the $802 million Qantas deal is felt across the market.

The record-breaking sale to Logos for the 13.8 hectare site was around $300 million over initial expectations and could be the catalyst for a price boom in surrounding regions, spurred on largely by increased demand for multi-level warehousing and logistic facilities on the back of the unprecedented swing to online shopping experienced throughout the pandemic.

Prices in the nearby south west industrial market in particular are primed to benefit from a flow-on effect, as new investment continues to reduce the amount of developable land. This is set to become even more apparent as gentrification of these old sites sees multi-level warehousing become the newly developed product of choice in the region.

“The Qantas transaction to Logos has truly shown that the future of logistics and warehousing in Sydney will be multi-level style like in other countries such as Singapore and Hong Kong. We believe that multi-level industrial development is the way of the future in Sydney due to low land supply and it’s likely that other areas besides South Sydney, such as the south west, will soon experience the same style of development,” Colliers National Director of Property Sales and Leasing Trent Gallagher said.

“What this is likely to do over time is significantly increase industrial land values as your typical building footprint could double or triple on various industrial sites, subject to FSR and height controls.”

In the 12 months to September 2021, 1-5-hectare land values in South West Sydney have risen 24.1 per cent, according to Director of Industrial Research for Colliers Luke Crawford. This was the highest annual growth rate since March 2019 and well above the 10-year average growth rate of 13.7 per cent per annum. The research, from the Industrial Development Update for Western Sydney, also showed that the catalysts behind the recent growth in land values has been the diminishing availability of industrial zoned land and significant levels of yield compression.

“There are approximately 300 hectares of net developable land in South West Sydney, representing around 15 per cent of total vacant land stocks in Western Sydney. However, of this total, 45 per cent is owned by privates or Government Departments who are not active in the current development cycle,” Mr Crawford said.

A property that is ripe for redevelopment as a potential multi-storey warehouse or logistics facility is 21 Marigold Street in Revesby, largely due to the fact only 38 per cent of the site has been developed and it has a pending DA for land subdivision. With a total land area of 10,416sqm and 75m street frontage, the site has a short-term holding income to established tenant Mirotone and price expectations north of $15 million.

“This is a brilliant opportunity to secure one of the last remaining scalable industrial development sites within Revesby where land supply is greatly diminishing, providing strong prospects for capital and rental growth,” said Mr Gallagher, who holds the listing with Colliers agent Angus Urquhart.

“The industrial market is breaking new records every day, we expect to see a large amount of interest from a range of different buyers given the site’s flexibility and multiple different development options possible,” Mr Urquhart added.

No. 21 Marigold Street, Revesby is being offered for sale via an Expressions of Interest campaign, closing Wednesday November 17, 2021 at 4pm.

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Trent Gallagher

National Director, Property Sales & Leasing | Industrial

Sydney South

Trent has been in the real estate industry for over 14 years and in that time, he has thrived in this competitive industry and established himself as one of the most highly esteemed agents within the industry. He has honed his skills in varied markets whilst specialising in commercial and industrial properties from which he has gained immense property knowledge. Since coming to Colliers International, he has excelled across the property spectrum and has become known for his hard work becoming the leading agent in the Sutherland Shire, St George, South Sydney, South West and the Inner West markets.

Trent has been involved in some of Sydney’s most notable sale transactions which includes the old Toyota HQ at 13 Endeavour Road, Caringbah and the Qantas investment and land portfolio at Mascot. Trent has also been involved in some of Sydney’s most notable industrial and commercial leases along with notable pre-lease transactions which includes the new 18,000m Harvey Norman warehouse at Casula.

Trent continues to endeavour to be at the forefront of the industry with innovative methods in canvassing, marketing and strategic sales. He strives to actualize the goals of his vendors and work hand in hand with prospective purchasers to ensure all parties achieve the best result efficiently.

Trent takes personal pride in his responsibilities to his clients and delivering service excellence across a variety of situations with his experience and knowledge to recognise and assess any industrial, commercial, retail or residential development site requirement. His assembly of long term clients is a testament to his commitment to his work and ensuring he delivers the best result every time.


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Luke Crawford

Director | Research


Luke has 10 years’ experience in property research and real estate advisory, providing strategic advice and research to private, government and listed groups. Luke currently heads up the national industrial and logistics research function at Colliers, where he provides high quality research on the trends impacting the sector to both internal business lines and clients.

Luke has provided tailored and strategic industrial and logistics research to groups including Charter Hall, Mapletree, ESR, Ascendas, Centennial and ARA.

Prior to joining Colliers International, Luke has held roles within the Real Estate Advisory Services (REAS) division at KPMG and the Research and Consultancy team at Knight Frank.

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Angus Urquhart

Manager, Property Sales & Leasing | Industrial

Sydney South

Previous tertiary education at The Scots College, Sydney and a Bachelor of Property Economics at the University of Technology Sydney has given me the experience in a range of working environments and has shaped me into a personable and determined team member and leader.

I have been in the real estate industry for over 5 years with experience as an Analyst and Exectuive providing valuable insights into cash flow modelling, development feasibilities and asset valuations.

As Manager within the Colliers Industrial South Sydney team, I thrive on competition and establishing relationships with long term clients to provide them with unparalleled service. Since coming to Colliers I have excelled across the property spectrum and endeavour to be at the forefront of the our team with innovative methods in canvassing, marketing and strategic sales. 

I strives to actualize the goals of my vendors and work hand in hand with prospective purchasers to ensure all parties achieve the best result efficiently.

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