Newcastle industrial market sees no large scale sales: HTW Industrial

Newcastle industrial market sees no large scale sales: HTW Industrial
Newcastle industrial market sees no large scale sales: HTW Industrial

There have been no sales of larger industrial sites of any note in the area in recent months, according to the latest report from valuation firm Herron Todd White.

The report found that given this, they took look at the sale of a large parcel of industrial land located close to the port and CBD.

The property, known as 110 Elizabeth Street, Tighes Hill is a 3.45 hectare parcel of remediated industrial land. The property is located at the corner of a major industrial intersection and has a frontage of almost 500 metres to the Industrial Highway.

The property was sold in April 2019 for an undisclosed sum.

The HTW valuers said, "we note that there is currently a DA with council for a service station which will take up approximately 6,000 square metres at the Elizabeth Street elevation. For the remaining parcel, the initial plan is for a multi-unit retail warehouse development."

"The proposed development will comprise three lots with up to 17 units ranging from 110 to 800 square metres approximately. The development also includes significant common area parking and a car wash facility. This project will be an industrial retail park and will be the only development of its type this close to the CBD," they added.

It’s likely that these units will attract strong demand from a variety of industrial retailers as well as general warehouse users.

Proximity to the CBD and Newcastle Port as well as having direct access to the Industrial Highway, which essentially links the CBD to the Pacific Highway, will be attractive features to tenants.

The report authors also said, "with the continuing development of the Honeysuckle precinct as well as new residential developments in Wickham and limited bulky goods retailers nearby, this creates a good opportunity for a range of tenants."

"The effect on rents that this development will have is difficult to ascertain until the mix of tenants is more obvious, however the proximity to the CBD and services would indicate a medium to high level of demand, and we would expect lease terms of three years and above as tenants look to secure longer term tenancies," they concluded.

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Newcastle Industrial Market

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