Despite the challenges posed by the current local and global economic headwinds, Australia’s industrial sector is poised to remain strong over the course of 2023.
According to Cushman & Wakefield, the industrial land market especially across NSW is expected to grow even tighter, coupled with significant positive tailwinds with continual rental reversion. In some prime/core markets, rents are expected to continue to grow, while they may stabilise in other non-core markets.
Tony Iuliano, Cushman & Wakefield’s International Director, Head of Industrial & Logistics – ANZ, said “Our real time intelligence tells us we are expecting at a minimum 10% rental growth for 2023/24 with vacancy currently sitting at 0.4%.
“Sydney is also heavily constrained from an opportunity to acquire perspective, as well as in relation to timing of bringing the land on-line, with large delays in planning, servicing, and construction causing further constraints on the Western Sydney land providing low levels of new supply and further pressure on existing supply and rents.
“Total vacancy in the existing market will continue to remain constrained over the coming 12-24 months, with continued levels of un-placed tenant demand and continued high levels of lease renewal rates”.
Despite these supply constraints, the Sydney industrial property market remains strong and resilient, with high levels of demand from tenants and investors alike, which requires a new approach to industrial brokerage.
As such, Cushman and Wakefield is investing heavily in bringing top class operators and teams together to provide a new level of service for its clients.
Client demand is still heavily weighted to acquiring infill opportunities with significant re-positioning and rental uplift plays. Assets with a short WALE providing opportunities for positive reversion at end of lease term will continue to be hotly contested throughout 2023.
Mr Iuliano said, “The business has identified a significant opportunity to grow in the Western Sydney market and provide continued expert service to our clients through the new appointment of a high performing team of experts.
David Hall joins as National Director, Head of Brokerage Industrial & Logistics - ANZ with over 15 years’ experience in the real estate industry, with a particular focus on the industrial and logistics sector. He will lead the team and be responsible for building and managing client relationships, managing industrial and logistics leasing and sales activities, identifying new business opportunities, and providing strategic advice to clients.
Also appointed is Fab Dalfonso as National Director, Brokerage Industrial & Logistics, Sydney South West, Carl Pearce as Associate Director, Brokerage Industrial & Logistics - Brokerage, Sydney West and Kieran Tsipidis, Nick Brooks, Alistar Siokos and Aston Dalfonso, all as Executives, Brokerage Industrial & Logistics -Sydney West / South West, NSW.
These new recruits join the existing Cushman & Wakefield Western Sydney team, increasing the team’s industrial experience to over 100 years combined in the market.
Supported by Tony Iuliano and the Capital Markets Industrial & Logistics team globally, the brokerage team will be well suited to bring “global transaction” thinking, processes and strategies to all clients at all levels (national and local).
Mr Iuliano said “The timely appointment of David Hall as the Head of Brokerage for Australia and New Zealand provides a very strategic opportunity and alignment for our brokerage clients looking for seamless, consistent service across all markets in the region.
“David is known as a highly detailed and proactive agent and has acted on behalf of some of the largest institutional and corporations in the world. His market knowledge and analytical approach provides second to none service and expertise to his clients.
“David and this new team are well trusted by the broader client base as true industrial real estate specialists across the region.”
Mr Iuliano stated that “Global capital has resurfaced and is back in the game – and all roads lead to Industrial & Logistics. This is a global phenomenon that is not slowing down”.
David Hall, National Director, Head of Brokerage Industrial & Logistics - ANZ said Sydney's industrial property market, particularly in Western Sydney, is evolving at a rapid pace, requiring adaptive thinking and an innovative approach to agency and brokerage.
“This new team was a natural expansion of our current Western Sydney division, and together, we are extremely well placed to navigate the industrial land, leasing and sales markets. Our deep understanding of the market conditions, occupier demand and investor requirements will certainly be an asset to all of our clients, and new clients in the future” he said.