Suburbs like Artarmon and Leichhardt need to meet changing needs and increasing demand for uses.
Sydney metro industrial areas are in great need of an upgrade to meet the changing needs of tomorrow’s industries, according to Colliers International.
Suburbs like Artarmon and Alexandria have experienced a phenomenal amount of capital growth in the last 24 months, whilst some areas have nearly doubled.
“This growth has stemmed from organic market growth but largely by the increasing pressure of businesses that need to remain central to the Sydney CBD or the communities it supports,” said Kellie Tattersall, Director of Industrial at Colliers International.
“Sydney has over 350 cranes in the sky and assembly, less than 5% of which would be seen for the development of much needed industrial products.”
“A lot of Industrial lands in the metro areas have been repositioned into high-rise dwellings whilst the remaining areas are under continuous pressure from local businesses to support these growing communities.”
According to Colliers, current council planning controls are deterring development within these areas, by not providing higher controls to encourage expansion, to the extent that investors/owner occupiers can offer nearly double to what a developer can for a site.
“Employment within a thirty minute commute for all of Sydney, while an admirable target for the Greater Sydney Commission is not realistic with planning controls that are 50 years old,” said Mr Jim Becker.
“Revised planning controls should allow redevelopment to create spaces suitable for the requirements of the 2020 type business to create employment within these areas.”
Kellie Tattersall notes that “Local businesses and owners can see the path for creating much needed employment lands for growing communities, however, it is evident that inefficient council planning control processes have failed to reach their objectives.”
“The council’s ideal is to protect and preserve, not protect and grow – which is what needs to happen for these areas to catch up.”