ISSUE 192 | JUNE 2026 | 02 9630 8000 WWW.BAWDENS.COM.AU I N D U S T R I A L The Sydney SME Industrial Rental Survey 2026 Industrial Vacancy Review 2026 Industrial Incentives Review Profit Margin Pressure Not Affecting SME Formation
INSIDE THIS ISSUE OF INDUSTRIAL PROPERTY NEWS Bawdens analyses SME industrial leasing data to reveal resilient rental growth alongside rising incentives impacting net effective returns. ISSUE 192 | JUNE 2026 | 02 9630 8000 | PAGE 2 MARKET INSIGHT SPECIAL The Sydney SME Industrial Rental Survey Bawdens is one of Sydney’s leading corporate property agents specialising in providing investors and small and medium enterprises with the very best insights to help them make quality commercial decisions today. In this issue, we identify what net face rentals were actually obtained across a sample of transactions totalling 180,000m² for the financial years 2024, 2025 and 2026 to date. The result can be seen in the table below. The research reveals that net face rentals have demonstrated resiliency for small and medium enterprise space (that is space with an area of less than 750m²), with average rentals in 2026 for the year to date climbing from $196 per square metre in 2025 to $208 per square metre, an increase of 6% year on year. However, net effective lessor cash flows have been compromised in 2026, with average rent-free incentives increasing from 1.1 months in 2025 to 1.8 months in 2026, an increase of 36% year on year (refer to our 2026 Industrial Incentives Review study on page 9 of this edition of Industrial Property News). The Sydney SME Industrial Rental Survey Bawdens is one of Sydney’s leading corporate property agents specialising in providing investors and small and medium enterprises with the very best insights to help them make quality commercial decisions today. In this issue, we identify what net face rentals were actually obtained across a sample of transactions totalling 180,000m² for the financial years 2024, 2025 and 2026 to date. The result can be seen in the table below. The research reveals that net face rentals have demonstrated resiliency for small and medium enterprise space (that is space with an area of less than 750m²), with average rentals in 2026 for the year to date climbing from $196 per square metre in 2025 to $208 per square metre, an increase of 6% year on year. However, net effective lessor cash flows have been compromised in 2026, with average rentfree incentives increasing from 1.1 months in 2025 to 1.8 months in 2026, an increase of 36% year on year (refer to our 2026 Industrial Incentives Review study on page 9 of this edition of Industrial Property News). 192 196 208 190 192 194 196 198 200 202 204 206 208 210 2024 530m² 2025 505m² 2026 425m² Average Net Rental Year and Average Building Area Ben Rodriguez: Director Asset Management,Joumana Tarabay: Director Asset Management, Robert Ally: Director and Terry Saba: Director
As Real Estate Agents and Property Asset Managers, we conduct ourselves based upon a commitment to our vision to simplify, adapt, lead and grow our corporate property services. Our mission to connect people, organise, maximise and transact corporate property has meant as a group of professionals we have continued to thrive. The reason we continue to be a growing company today is because we remain aware that our purpose is to proudly protect our clients and earn their honest appreciated trust and friendship. VISION To simplify, adapt, lead and grow our corporate property services PURPOSE To proudly protect our clients and earn honest, appreciated trust and friendship MISSION We connect people, organise, maximise and transact corporate property VALUES Integrity, Passion, Leadership and Trust Our Why’ Story ISSUE 192 | JUNE 2026 | 02 9630 8000 | PAGE 3 www.linkedin.com/company/ bawdens-industrial Follow us on LinkedIn • Stay informed • Find out what transactions we have just completed • Be up to date with the current market offerings Leasing or buying Leasing Buying 41% 59% Bawdens is pleased to present 157 Orchardleigh Street, Old Guildford, to the market for sale via an Expression of Interest campaign closing 12 June 2026. Offered on behalf of our valued client, this substantial freestanding industrial facility comprises approximately 2,589m² of building area positioned on a generous 3,980m² site. The property presents a compelling opportunity for owner-occupiers seeking to secure well-located and functional premises for their business operations. With limited availability of comparable assets, the owner-occupier market remains particularly strong, further underpinning the appeal of this offering. Strategically located within a well-established industrial precinct, the property benefits from excellent connectivity and proximity to key transport routes, enhancing accessibility and operational efficiency. This is a rare opportunity to acquire a high-quality asset in a tightly held location. For further details, contact Bawdens Sales and Leasing Executives, James Zerefos on 0400 326 828 or Paul Chidiac on 0415 887 566. BAWDENS NEWS Substantial Freestanding Industrial Asset in Tightly Held Precinct FOR SALE Seven Hills 212m2approx. Industrial Warehouse • Internal clearance of 6.85m • Good truck access • Refurbished mezzanine • Three-phase power • Close proximity to major arterial roads Daniel Su: 0415 181 411 Terry Saba: 0416 175 009
ISSUE 192 | JUNE 2026 | 02 9630 8000 | PAGE 4 Pendle Hill North Rocks Rouse Hill Seven Hills Norwest Auburn Camellia Wetherill Park Rydalmere Smithfield Bawdens Deals Done LEASED BY LEASED BY SOLD BY SOLD BY LEASED BY SOLD BY SOLD BY LEASED BY LEASED BY SOLD BY MARKET INSIGHT SPECIAL 2026 Industrial Vacancy Review Bawdens is one of Sydney’s leading industrial property agents. In the second of a two-part study, we recently released private client research identifying changes in the length of time it takes to lease a building today as compared to the same time in 2025. The research identified all buildings currently available for lease during a study period in the 2024-2025 financial year. It then adapted the same criteria for the 2025-2026 financial year. Time on market was identified from date as appointed leasing agent, ending when a lease was executed. All buildings in the study had a gross lettable area of less than 2000m². The results can be seen in the table below. To the end of March 2025, the average vacancy period was 2.9 months. To the end of March 2026, the average vacancy period was 4.6 months. Vacancy periods have increased 58% year on year, reflecting the lag between lessors not recognising the effects upon lessee businesses from slowing economic growth and consequently adjusting asking rentals in 2026.
ISSUE 192 | JUNE 2026 | 02 9630 8000 | PAGE 5 38% Space in demand 0-500m² 500m² - 2000m² >2000m² 38% 41% 21% FOR LEASE North Parramatta 650m2approx. Freestanding Warehouse with Exposure • Clear span warehouse • Good truck access • Bonus mezzanine area of approx. 221m² • Onsite undercover parking • Minutes away from Cumberland Hwy & James Ruse Dr Jarrad Love: 0408 817 025 Monjer Khan: 0422 753 262 YLEASED BY FOR SALE/LEASE Rouse Hill 392-1347m2 approx. Brand New Quality Industrial Premises • Quality finishes • Exclusive secured yard • Flexible E4 General Industrial Zoning • Internal clearance 8.5m to 10.5m • Excellent truck access • Climate management awning Robert Ally: 0413 758 658 BAWDENS ASSET MANAGEMENT 31% Rental Uplift Through Repositioning Proactive Asset Management can unlock significant value for owners. To do so, Asset Managers need to understand where the property sits in the market and if it can be repositioned to attract better users or more rent. Following the default of a tenant in an industrial complex in Rosehill, the entire complex being exclusively managed by Bawdens, Jack Perkins and Warren Truong met with the owner to better strategise the use of the Bank Guarantee funds, rather than using them to reinstate the premises and recover arrears, in order to reposition the asset and convert it into one of the premier units in the complex. The use of the failed tenancy no longer aligned with core industrial demand, mainly because of the oversized office area. Part of the oversized office was converted into useable mezzanine space with direct access to the warehouse, making better use of 350m² of redundant office space. The outcome validated the strategy. The unit attracted a $57,000.00 increase in the first year equating to 31% increased net rental on the previously negotiated rent. Jack and Warren’s proactive management highlights how older-style industrial units still have the potential to command market rentals, provided you can align the asset with current industrial user requirements. BEFORE AFTER BEFORE AFTER BEFORE AFTER
ISSUE 192 | JUNE 2026 | 02 9630 8000 | PAGE 6 AUCTION DAY No Marketing Costs* (T&C’s apply) Lower Selling Fees Higher Prices Thinking of selling? • Be part of our Auction Day Sale • Expose your property to one of the largest buyer databases in Sydney • Use our auction negotiation skills to achieve the sale price you want Register your Interest: Call 9630 8000 or contact your preferred Bawdens Agent. FOR SALE Castle Hill 5,424m2 approx. Landmark Industrial Opportunity • First time offered in 38 years • 10 functional high clearance industrial units • Multiple value-add strategies • Exceptional tenant retention • Close to Metro, major arterials and key infrastructure Barry Cawthorn: 0417 288 975 Barry Johnston: 0412 606 030 Simply search ‘Bawdens_RealEstate’. Like us on Instagram • Stay informed • Find out what transactions we have just completed • Be up to date with the current market offerings Vacancy by No. of Properties Vacant Properties Managed 1.7% BAWDENS NEWS Building Momentum: LH Projects Lays Foundations for Growth in Thornleigh Driven by the belief that “construction isn’t just our profession – it’s our passion”, LH Projects Pty Ltd has taken another step forward, securing new premises at 37/7 Sefton Road, Thornleigh. The 167m² unit was selected for its strategic location, providing a practical base to support the company’s ongoing operations and future growth. Well-suited to the business’ hands-on approach, the space offers both accessibility and functionality. The lease was secured on a 2-year term with a further 1-year option, at a net rental of $40,000 per annum, reflecting $239 per square metre + outgoings & GST. The transaction was successfully negotiated by Bawdens Sales and Leasing Executive, Jarrad Love. YLEASED BY AUCT ION Minchinbury 1,550m2approx. Freestander with Dual Driveways • High clearance warehouse with yard • Great truck & container access • Three-phase power with 400 amps • Auction: 18/06/2026, 11:30am at Bawdens Auction Room, Level 1, 18-20 Ross Street, Parramatta Monjer Khan: 0422 753 262 Terry Saba: 0416 175 009 FOR LEASE Yennora 825m2approx. Freestanding Warehouse • Excellent large vehicle access • Access via 1 motorised container height roller shutter • Fenced site • 200 amps power • Ample on-site parking James Zerefos: 0400 326 828
ISSUE 192 | JUNE 2026 | 02 9630 8000 | PAGE 7 Peter Pacetta: 0416 001 509 If this is something that you would also like to receive please feel free to contact Have you seen our new edition of COMMERCIAL Vacancy Rate by m2 Vacant Properties Managed 2.9% We currently support the following organisations: Charitable Foundation BAWDENS NEWS YLEASED BY Sydney Tyre Service Accelerates Growth with Strategic Wetherill Park Expansion Sydney Tyre Service, currently based in Ingleburn, has expanded its operational footprint with the lease of an additional facility at 1/32 Elizabeth Street, Wetherill Park. The property aligns seamlessly with the company’s growth strategy, offering strong street exposure, multiple roller door access points, and a substantial all-weather awning – features that enhance efficiency and service capability. The total usable area, including the awning, spans 1,121m², providing ample space to support increased demand. The lease was secured on a 3 + 3-year term, with a commencing net rental of $168,150 per annum, reflecting $150 per square metre + outgoings & GST. The transaction was successfully negotiated by Bawdens Sales and Leasing Executive, Paul Chidiac. FOR SALE Seven Hills 228m2approx. Industrial Warehouse • Hi-tech warehouse • Secured site • Modern air-conditioned office • Good access into complex via Station Road and Prospect Highway • Easy walk to railway and bus station Terry Saba: 0416 175 009 Monjer Khan: 0422 753 262
ISSUE 192 | JUNE 2026 | 02 9630 8000 | PAGE 8 Asset Management Vacancy Rate Office Industrial Retail 3.28% 0.59% 3.57% BAWDENS ASSET MANAGEMENT BAWDENS NEWS Freestander in Minchinbury Offered via Auction Bawdens is pleased to present 40 Sargents Road, Minchinbury, to the market for sale via auction on 18 June 2026 at 11:30am, to be held in the Bawdens Auction Room, Level 1, 18–20 Ross Street, North Parramatta. The property offers 1,550m² of building area on a 2,401m² site. This modern freestanding warehouse is designed for efficiency, featuring two container-sized roller shutter doors and dual driveway access. It also includes well-appointed, air-conditioned office space over two levels, complemented by ample on-site parking, a secure yard, and three-phase power (400 amps). With excellent access to the Great Western Highway and M4 Motorway, the property is ideally positioned for a range of logistics and last-mile delivery operators. For further information or to arrange an inspection, please contact Bawdens Director, Terry Saba on 0416 175 009, or Sales & Leasing Executive, Monjer Khan on 0422 753 262. FOR LEASE Ingleburn 1,568m2 approx. Ideal for Large Vehicle Manoeuvring • High clearance warehouse • Two roller shutters • Functional office area • On grade access and dock loading • Secured site Victor Zerefos: 0416 047 288 Paul Chidiac: 0415 887 566 FOR LEASE Blacktown 94m2approx. Industrial Warehouse • Refurbished street front unit • Good truck access • 100 amps power • Air-conditioned office • Close proximity to M2 & M7 Daniel Su: 0415 181 411 Monjer Khan: 0422 753 262
ISSUE 192 | JUNE 2026 | 02 9630 8000 | PAGE 9 MARKET INSIGHT SPECIAL 2026 Industrial Incentives Review Bawdens is Sydney’s leading specialist industrial property agency. In the first of a two-part study, we recently released private client research identifying changes in rent-free period incentives granted by lessors to lessees during the 2025/2026 financial year as compared to the previous year. The research identified all lease transaction incentives granted during a three-month period in the subject year. A comparative study time and data set was also identified for the 2024/2025 financial year. All analysed transactions involved properties with a gross lettable area of less than 2000m². The results can be seen in the table below. To the end of the financial year 2025, the average rent-free period is 1.1 months. To the end of financial year 2026 (YTD), the average rent-free period is 1.8 months. Despite industrial SME space remaining at record lows, incentives in 2026 have increased by 36% since 2025. Profit margin pressure, inflation and declining productivity are impacting confidence and forcing SME businesses to reflect before acting. This is also impacting vacancy periods. BAWDENS NEWS YLEASED BY Exedy Australia is ready for Seven Hills Relocating from Arndell Park, Exedy Australia has secured a modern freestanding industrial facility at 1 Tollis Place, Seven Hills. The automotive parts supplier and distributor has committed to a 5 + 5-year lease over a high clearance warehouse spanning 1,860m², within a secure site. The property was leased for $390,000 per annum net, equating to $210 per square metre + outgoings & GST. The transaction was successfully negotiated by Bawdens Director, Terry Saba and Sales & Leasing Executive, Monjer Khan.
ISSUE 192 | JUNE 2026 | 02 9630 8000 | PAGE 10 Barry Cawthorn: 0417 288 975 Robert Ally: 0413 758 658 If this is something that you would also like to receive please feel free to contact Have you seen our new edition of Simply search ‘Bawdens’ on YouTube. Subscribe to our YouTube • Stay informed • Find out what transactions we have just completed • Be up to date with the current market offerings Website Enquiry Real Commercial Commercial Real Estate Google Other 36% 12% 29% 23% BAWDENS NEWS YLEASED BY Heavy Duty Fabrications heavies up in Smithfield Heavy Duty Fabrications has secured a refurbished freestanding industrial facility at 12 Long Street, Smithfield. The company has committed to a 5 + 5-year lease over a secure warehouse with substantial power supply, totalling 927m². The transaction was completed at the asking rental of $172,000 per annum net, reflecting $186 per square metre + outgoings & GST. The transaction was successfully negotiated by Bawdens Director, Terry Saba and Sales & Leasing Executive, Rohit Kumar. BAWDENS ASSET MANAGEMENT Asset Management – Lease Audits and Negotiations Senior Asset Manager Tracy Le has successfully negotiated a new lease structure that delivers a materially improved outcome for the landlord, addressing longstanding concerns around rent return and recovery of outgoings. The longstanding lease had been transitioned from father to son and was heavily weighted in favour of the tenant, being a gross rental with the recovery of water usage. Tracy estimated outgoings to be $40,000 per annum, leaving the landlord at a significant loss and absorbing a cost burden that was not aligned with market conditions. Through detailed negotiation and repositioning of the lease terms, Tracy secured a 14% increase in net rental, achieving $86,680 per annum net plus GST, reflecting a rate of $220 per square metre. Importantly, the lease has been restructured to a fully net arrangement, with the tenant now responsible for 100% of outgoings. This new lease effectively realigns the asset with market standards, improving the owner’s net return while maintaining tenant continuity. This outcome once again highlights the importance of proactive asset management in auditing leases and strategic negotiation in unlocking value, particularly where legacy lease structures no longer reflect market realities. EOI South Granville 483m2approx. Modern Multi-Level Warehouse • Flexible configuration for diverse use • Strategic location • Rare three-level versatile space • Additional 3 underground garage storage • 2 parking spaces + ample customer parking Rishad Kharadi: 0405 732 041
ISSUE 192 | JUNE 2026 | 02 9630 8000 | PAGE 11 Are you looking to sell your property in 2026? With a 100% success rate, utilising this method of sale you will achieve a price better than you expected, which will allow you to realise your new ambitions. Our In-Room auction facility delivers you the highest probability of an exceptional price. Let Bawdens present your property professionally and use our negotiation skills to deliver you the highest possible price. AUCTION WITH US Register your Interest: Call 9630 8000 or contact your preferred Bawdens Agent. Our asset management team can maximise the value of your asset. Lease Negotiations Rent Reviews Outgoing Audit Transaction Management Make-Good Management MARKETING Bawdens use their e-cloud technology to complete behavioural marketing that identifies the buyers or tenants who will pay the highest price or rental. We are Sydney’s only Industrial Agency utilising behavioural marketing. Where it all came from Internet Bawdens IPN Signs Clients 4% 31% 21% 44% BAWDENS NEWS YSOLD BY Allied Technical Services Powers Growth with Strategic Move to Rouse Hill Established in 2006, Allied Technical Services continues to strengthen its footprint across Sydney and Australia, delivering specialised gym equipment services to residential, commercial, and corporate clients. In line with its ongoing growth, the company has secured brand new premises at Unit 1, 4–6 Mile End Road, Rouse Hill. Seeking a larger, more functional space to support increasing demand, Allied Technical Services identified Unitas Business Park as the ideal solution. The prominent street-front unit, spanning 405.7m², offers enhanced accessibility and operational capacity tailored to the business’ evolving needs. The property was transacted for $2,320,000, equating to $5,720 per square metre + GST, underscoring continued demand for quality industrial assets in the Rouse Hill precinct. For further information, please contact Bawdens on 9630 8000. FOR SALE Old Guildford 2,589m2 approx. Freestanding Warehouse/Office Facility • High internal clearance up to 7.8m (approx.) • Modern office/showroom over two levels • Access via 3 roller shutter doors • Dual driveway access • Excellent connectivity to major roads James Zerefos: 0400 326 828 Paul Chidiac: 0415 887 566
ISSUE 192 | JUNE 2026 | 02 9630 8000 Disclaimer Notice: Neither Bawdens, nor the publishers and editors of articles in this issue accept any form of liability, be it contractual, tortious or otherwise, for the contents of this newsletter or for any consequences arising from its use or any reliance placed upon it. All the information contained in this publication has been provided to us by various parties. We do not accept any responsibility to any person for it’s accuracy and do no more than pass it on. All interested parties should make and rely upon their own enquiries in order to determine whether or not this information is in fact accurate. Customised relevant marketing means maximum results. We are the only agency with real time database management. Instagram Facebook LinkedIn YouTube Simply search | PAGE 12 MARKET INSIGHT SPECIAL Profit Margin Pressure Not Affecting SME Formation Bawdens is Sydney’s largest industrial and commercial property sales and leasing specialist. As a specialist, we complete various detailed analyses of the activities of Small Medium Enterprise (SME) businesses during any business period. In this issue, we look at business formation. This measure can provide an indication of confidence and economic health in Sydney. Formation of a new business or growth in an existing small business can be identified as being any sale or lease transaction with a gross lettable area (GLA) of less than 250m². The graph below reveals that as a percentage of all transactions completed by the firm between 1 July 2025 and 31 December 2025, some 53% had a building area of 250m² or less, satisfying our business formation or growth criteria. Despite SME profit margin pressure during the period, SME business owners continued to act with confidence. Interestingly, the issue of profit margin pressure can be observed in the reduced activity of older but aspirational businesses leasing or purchasing space between 251m² and 1000m². The study data revealed businesses seeking or using space between 500-1000m², in particular, reduced activity whilst they focused upon profit margin recovery in the study period. Older businesses using more than 1000m² of space exhibited consistent confidence throughout the study period.
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