Infrastructure projects critical to Sydney’s expanding industrial sector.
The NSW State Government’s commitment to spend a further $590 million to accelerate major infrastructure projects, including the Sydney Metro (City and south-west) project, is being welcomed by the industrial sector.
“The industrial sector is benefitting significantly from a number of the infrastructure projects that are planned or currently in the works,” said Malcom Tyson, Managing Director of Industrial at Colliers International. “The Enfield Intermodal, WestConnex motorway and the Moorebank Intermodal are all projects that will have a direct impact on the accessibility of Sydney’s growing south, south-west and western industrial suburbs."
Sydney’s industrial landscape has undergone significant change in recent years, as the growing population has led to the urbanisation of many centrally-located industrial suburbs such as Redfern, Moore Park and Alexandria, driving industrial occupiers further afield.
“The urban activation of Sydney is having a dramatic impact on the supply of our industrial property, and changing the profile of many traditional industrial areas,” said Mr Tyson. “For some time developers have been buying up industrial land, with the long term view of having these assets rezoned and redeveloped into Sydney’s newest residential hotspots. Many of these industrial assets are older and lower grade, so they’re ripe for redevelopment and conversion to a higher-yielding, better use residential development.”
For the industrial occupiers, this urban activation is pushing them further south and west. The $68.6 billion in infrastructure committed to or planned for NSW is critical in supporting these industrial occupiers in their new areas. The North West rail link, the Western Sydney Light Rail and the widening of the M5 are all important infrastructure projects for the industrial industry.
“With Sydney projected to be home to an additional 1.5 million people by 2031, the industrial market will benefit from the increasing needs for housing and retail,” said Mr Tyson. “Sydney is a land-constrained market, with boundaries of national parks to the north and south, the Blue Mountains to the west, and the coast to the east. Any excess land within these constrains will experience competing interest from residential and industrial.”