Sydney August 2025 Commercial & Industrial Market Update

Sydney’s industrial property market continues to operate at full throttle as supply chain investment intensifies across the city’s western corridor. The biggest headline this month is Goodman Group’s $575 million acquisition of a 196-hectare site in Badgerys Creek, marking one of the most significant land transactions ever near the Western Sydney Airport precinct. With 112 hectares of developable area, the proposed logistics superhub will bring up to 600,000 sqm of warehousing to market, reshaping NSW’s freight, logistics, and e-commerce landscape.

Major Aerotropolis Acquisition Signals a New Phase of Development

Goodman’s acquisition reinforces the immense value investors are placing on airport-adjacent industrial land. Located at the heart of the Western Sydney Aerotropolis, the site sits within the Mamre Road Precinct—an area identified by the NSW Government as critical to national logistics growth.

• The site comprises 196 hectares with 112ha zoned for logistics development

• Located in Badgerys Creek, a key gateway to the new Western Sydney Airport

• Expected to accommodate 600,000+ sqm of logistics floorspace for tenants like Amazon, FedEx, and Coles

• Investment supports the ongoing rollout of Aerotropolis infrastructure and road upgrades

Hot Industrial Suburbs Driving Market Momentum

While Badgerys Creek grabs the spotlight, several other suburbs continue to lead Sydney’s industrial boom. Leasing activity, land uptake, and rezoning approvals have surged across multiple logistics corridors, particularly in areas with excellent road access and proximity to major intermodals.

• Eastern Creek: Demand remains sky-high with multiple speculative builds in progress

• Kemps Creek: Home to huge pre-lease activity and major REIT interest

• Moorebank: Fast becoming a last-mile logistics hub thanks to intermodal connectivity

• Marsden Park: Zoned industrial land almost entirely taken up as demand spreads north

• Prestons: Strong take-up among building suppliers, auto logistics, and cold storage groups

Latest Industrial Land Releases and Planning Activity

New land releases remain limited, and that scarcity is a key factor pushing industrial land values to record levels across Sydney. However, several key releases and proposals are helping unlock additional supply in high-demand corridors.

• Oakdale West Estate (Goodman) continues staged delivery of new lots with strong pre-commitments

• Mamre Road Precinct has new stages activated with roadwork nearing completion

• Northern Gateway Precinct nearing rezoning finalisation, expected to unlock 2,000+ jobs

• Bringelly and Luddenham areas flagged for potential fast-tracked approvals to meet 2026–2030 demand

• Smaller strata releases in Wetherill Park, Smithfield, and Milperra gaining traction with investors

Broader Market Trends and Investor Activity

Beyond just land and leasing, the August 2025 period highlights continued strength in institutional interest for Sydney’s industrial assets. Vacancy remains below 1%, with strong rent growth projected through FY2026.

• Super funds, private capital, and global pension investors targeting core Sydney logistics assets

• ESG-focused developments like solar-ready and multilevel warehouses gaining approvals

• High tenant retention rates and triple-net leases driving value in strata unit sales

• Continued consolidation of smaller holdings into larger campus-style logistics parks

What This Means for Developers and Agents

Sydney remains Australia’s most active logistics development market. If you’re holding land, considering a lease campaign, or looking to showcase project potential, now is the time to act. A visual strategy that clearly communicates density, staging, and yield potential will be critical to cutting through the noise.

• Landowners benefit from record per-sqm values when development potential is well-articulated

• Pre-leasing efforts succeed best with on-site rendered visualisation and digital IMs

• Urban infill lots in Sydney’s west can unlock significant value uplift with smart masterplans

How Commercial Property Marketing Can Help

At Commercial Property Marketing, we help landowners, agents, and developers showcase their assets at the highest possible value. Through on-site 3D renders, drone 360s, masterplans, and full marketing packages, we help you achieve faster leasing, higher sales prices, and investor-ready presentations.