ISSUE 189 | MARCH 2026 | 02 9630 8000 WWW.BAWDENS.COM.AU I N D U S T R I A L Profit Margin Pressure Not Affecting SME Formation We Connect Industrial Vacancy and Business Behaviour Industrial Market Activity Reacts to Past Inflation Pressures Profit Margin Pressure and Declining Productivity Impacting Industrial Property Demand
INSIDE THIS ISSUE OF INDUSTRIAL PROPERTY NEWS We examine business formation – a key indicator of confidence and overall economic health in Sydney. ISSUE 189 | MARCH 2026 | 02 9630 8000 | PAGE 2 Ben Rodriguez: Director Asset Management, Esperance Saad: Associate Director Asset Management, Terry Saba: Director and Robert Ally: Director 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.
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 189 | MARCH 2026 | 02 9630 8000 | PAGE 3 Leasing or buying Leasing Buying 43% 57% Join our team as a Sales & Leasing Executive Hiring WE ARE Scan the QR code to find out more and apply. FOR LEASE Silverwater 157m2 & 264m2 approx. High Clearance Warehouse • Functional mezzanine office • Easy roller door access • On-site parking in secured complex • Dual entry/exit at Vore Street & Derby Street Daniel Su: 0415 181 411 Jarrad Love: 0408 817 025 BAWDENS NEWS YSOLD BY Riverstone Duplex Site Sold for $5,000,000 Relocating within the Riverstone area, owner-occupier Perfecto Foods Pty Ltd has purchased Units 1 and 2 at 64 Edward Street, Riverstone. The property comprises 1,000 sqm on an 1,825 sqm site and is a modern, secure duplex with good truck access. The sale price was $5,000,000 ($5,000 per sqm). The deal was completed by Bawdens Senior Consultant – Sales and Leasing, Graeme Scott. FOR LEASE Kings Park 321m2 approx. Industrial Warehouse • Modern office and amenities • Suited to small and medium enterprises • Wide dual width driveways • After hours security gates • Easy access to M4 and M7 motorways Monjer Khan: 0422 753 262 Terry Saba: 0416 175 009
ISSUE 189 | MARCH 2026 | 02 9630 8000 | PAGE 4 MARKET INSIGHT SPECIAL We Connect Industrial Vacancy and Business Behaviour Bawdens is Sydney’s leading small and medium enterprise industrial property specialist. In the last issue of Industrial Property News (see page 9), the firm released client research revealing that despite interest and inflation rates falling in 2024 and 2025, the demand for space from businesses, as measured by the number of enquiries received by the firm from leading property portals, Real Commercial and Commercial Real Estate, had declined. In this issue, we identify that the reduction in demand appears not to be from a contraction in activity, but rather driven by a pause in decision-making as businesses adjust behaviour to recover profit margins. To identify if businesses are downsizing, we can look at the amount of space vacant. As a percentage of all space the firm has under management, there was a small increase in the amount of space vacant during 2025 between March and June, but a decline in available space between June and October. With a vacancy rate of approximately 2.5% today, the market remains biased towards unbalanced, with any slight improvement in confidence likely to lead to demand exceeding supply. This condition is likely to persist in 2026. We Connect Industrial Vacancy and Business Behaviour Bawdens is Sydney’s leading small and medium enterprise industrial property specialist. In the last issue of Industrial Property News (see page 4), the firm released client research revealing that despite interest and inflation rates falling in 2024 and 2025, the demand for space from businesses, as measured by the number of enquiries received by the firm from leading property portals, Real Commercial and Commercial Real Estate, had declined. In this issue, we identify that the reduction in demand appears not to be from a contraction in activity, but rather driven by a pause in decision-making as businesses adjust behaviour to recover profit margins. To identify if businesses are downsizing, we can look at the amount of space vacant. As a percentage of all space the firm has under management, there was a small increase in the amount of space vacant during 2025 between March and June, but a decline in available space between June and October. With a vacancy rate of approximately 2.5% today, the market remains biased towards unbalanced, with any slight improvement in confidence likely to lead to demand exceeding supply. This condition is likely to persist in 2026. 0 0.5 1 1.5 2 2.5 3 3.5 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Telopea Fairfield Rouse Hill Smithfield Northmead Arndell Park Bella Vista St Marys Glendenning Norwest Bawdens Deals Done LEASED BY LEASED BY SOLD BY SOLD BY LEASED BY SOLD BY SOLD BY LEASED BY LEASED BY SOLD BY
ISSUE 189 | MARCH 2026 | 02 9630 8000 | PAGE 5 Space in demand 0-500m² 500m² - 2000m² >2000m² 38% 21% 41% If this is something that you would also like to receive please feel free to contact Peter Pacetta on 0416 001 509 Have you seen our new edition of COMMERCIAL BAWDENS ASSET MANAGEMENT Full Roof Replacement Shubham Chaudhry, Senior Asset Manager, recently completed a full roof replacement for one of our corporate clients in Erina. Bawdens had recently been appointed to manage the asset, and following complaints from the tenant regarding ongoing leaks, Shubham acted quickly to assess the issue. After investigations by multiple contractors, it was identified that widespread poor workmanship and extensive patchwork from previous works had caused significant deterioration of the industrial roof, resulting in failure beyond repair. Contractors’ assessments confirmed that isolated repairs were no longer viable and that the integrity of the roof system had been compromised. Acting on expert advice, a complete roof replacement was recommended to the client to protect the building and its occupants. The project resolved the underlying defects, eliminated ongoing maintenance risks, and provided the owner with longterm certainty, durability, and compliance. FOR LEASE FOR SALE Seven Hills 152m2approx. Pendle Hill 1,436m2approx. High Clearance Warehouse • Mezzanine office • Good truck access • Container size roller door • Easy access to main roads • Three-phase power Monjer Khan: 0422 753 262 Daniel Su: 0415 181 411 Freestanding Office Warehouse with Rear Yard • Ground floor showroom • Mezzanine office 134m² • Short term lease till 1st November 2026 • Minutes from Railway Station • Close to all major motorways Graeme Scott: 0418 261 882
ISSUE 189 | MARCH 2026 | 02 9630 8000 | PAGE 6 FOR SALE/LEASE Brand New Quality Buildings With Secure Yard • Quality finishes • Exclusive secure yard • Climate management awnings • Internal clearance 8.5 to 10.5m • Excellent truck access Robert Ally: 0413 758 658 Rouse Hill 392-1,320m2approx. BAWDENS NEWS YSOLD BY Mintolsan Property Holdings Secures Thornleigh Facility in $1.97m Strategic Acquisition Mintolsan Property Holdings, a Sydney-based business associated with Blue Seas Food Services, specialising in the sourcing, warehousing, and distribution of frozen and fresh foods as well as dry goods, has acquired 1/9 Pioneer Avenue, Thornleigh. This is one of multiple properties the company now owns and operates within the complex. The 560m² warehouse was purchased at a rate of $3,578 psm plus GST, reflecting the company’s decision to secure a long-term business location to support its continued growth and operations in the Sydney market. The deal was completed by Bawdens Sales and Leasing Executive, Jarrad Love. FOR SALE FOR SALE/LEASE FOR LEASE FOR SALE Dural 232m2approx. Seven Hills 1860m2approx. St Marys 204m2approx. Premium Corner Industrial Free Stander • Dual roller shutter access • Internal clearances of 8 to 9 metres approx. • High-quality corporate first- floor office accommodation • Fully equipped staff amenities Monjer Khan: 0422 753 262 Terry Saba: 0416 175 009 Modern Warehouse • Modern air-conditioned office • Good truck access • High clearance up to 8m • Secured complex • Easy access to M4 and M7 motorways Monjer Khan: 0422 753 262 Terry Saba: 0416 175 009 Invest or Occupy – Hi-Tech Industrial Warehouse • High clearance warehouse • Modern complex • Good truck access and circulation • Close to cafés, gyms, and local services Rohit Kumar: 0434 309 788 Peter Pacetta: 0416 001 509 Seven Hills 160m2approx. Industrial Warehouse • Small office on mezzanine • Good Truck Access • 2 car spaces • Secured Complex • Easy Access to Main Road Monjer Khan: 0422 753 262 Daniel Su: 0415 181 411
ISSUE 189 | MARCH 2026 | 02 9630 8000 | PAGE 7 Vacancy Rate by m2 Vacant Properties Managed 2.5% We currently support the following organisations: Charitable Foundation BAWDENS ASSET MANAGEMENT Strategic Negotiation Delivers Rental Uplift Newly appointed Senior Asset Manager, Anthony Dosen, successfully negotiated a market review that delivered a 38% increase in net rental on a new three-year term. Through a thorough review of prevailing market evidence, Anthony confidently positioned the asset at the top end of market parameters. His approach balanced firmness on value with a clear understanding of the tenant’s operational needs and how the building supported them. This outcome reflects Anthony’s ability to translate market intelligence into tangible results for our clients, securing a meaningful uplift in income return and strengthening client cash flow. It also demonstrates Bawdens Asset Management’s well-executed negotiation strategy. FOR SALE Seven Hills 213m2approx. Premium High Clearance Industrial Unit • Spacious warehouse • Modern mezzanine office • Secure estate with convenient truck manoeuvrability • Close proximity to major roads Monjer Khan: 0422 753 262 Daniel Su: 0415 181 411 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
ISSUE 189 | MARCH 2026 | 02 9630 8000 | PAGE 8 Simply search ‘Bawdens_RealEstate’ on Instagram. Like us on Instagram • Stay informed: view our monthly Industrial Property News, weekly Market Brief and bimonthly Commercial Property News & Property Investor News • Find out what transactions we have just completed • Be up to date with the current market offerings For the latest media releases & market trends visit our website www.bawdens.com.au Website Enquiry Real Commercial Commercial Real Estate Google Other 34% 30% 12% 24% BAWDENS NEWS YLEASED BY The Styling Fantasy Brings Creative Vision to Clyde The property at 24 Berry Street, Clyde has been successfully leased to The Styling Fantasy, a business dedicated to transforming homes into inspiring, market-ready spaces. Guided by a philosophy of maximising client returns through minimal and thoughtful investment, The Styling Fantasy brings a creative and strategic approach to property presentation. The 377m² facility comprises approximately 126m² of office space and 257m² of warehouse space. The lease commenced at a rental of $79,500 per annum net, plus GST and outgoings, reflecting an approximate rate of $211 per square metre net, plus GST and outgoings. The new Clyde location will support the company’s growing operations as it continues to help homeowners and property professionals enhance value and appeal across the market. The transaction was completed by Sales and Leasing Executive, Monjer Khan. FOR LEASE Parramatta 156m2 approx. Prime Retail Opportunity • Excellent signage and branded opportunity • Ideal for meat, poultry, fresh produce and seafood • Onsite customer parking • Onsite amenities • Central location Rishad Kharadi: 0405 732 041 Terry Saba: 0416 175 009 FOR SALE SOLD FOR LEASE Seven Hills 202m2approx. Riverstone 450m2approx. Blacktown 395m2 approx. Secured High Clearance Warehouse • Modern Office • Good Truck Access • 6-metre-high clearance • Three (3) phase power • Easy Access to M4 & M7 Motorway Monjer Khan: 0422 753 262 Daniel Su: 0415 181 411 Secured High Clearance Warehouse • High Clearance Warehouse • Container accessibility • Air-conditioned first floor office area • Three (3) allocated parking spaces • Dual street access James Zerefos: 0400 326 828 Freestanding Warehouse with Yard • Clear span warehouse • Office space plus amenities • Secured site • Located in a major growth region • Suit a number of users James Zerefos: 0400 326 828 YSOLD BY
ISSUE 189 | MARCH 2026 | 02 9630 8000 | PAGE 9 MARKET INSIGHT SPECIAL Industrial Market Activity Reacts to Past Inflation Pressures In the second of a two-part study, leading SME Industrial Property company Bawdens continues to identify factors that influence profit margins. In Issue 186, the firm identified that the lag effects of inflation impacted confidence, and so the number of sales even through a period of falling interest rates (see page 12). In this issue, the company identified the total number of enquiries received annually from the internet portals, Commercial Real Estate (CRE) and Real Commercial (REA), adjusted for differences in the total number of properties marketed for lease or sale each year. Again, despite both inflation and interest rates falling since 2023, total enquiries received in 2023 fell 29% from 2022. In 2024, the fall in total market activity, as measured by total enquiries received for the year, stabilised from 2023, as businesses focused on adjusting to profit margin pressure. A recovery in confidence, and so enquiry activity, is not likely until 2026 as businesses make further adjustments to manage declining productivity and adopt a “wait and see” approach to 2026. Asset Management Vacancy Rate Office Industrial Retail 3.28% 0.59% 3.57% BAWDENS ASSET MANAGEMENT FOR LEASE Seven Hills 278m2 approx. Modern Industrial Warehouse • Good truck access • Motorised roller shutter • Air-conditioned office • Easy access to M2 & M7 Motorways • Flexible E4 Industrial zoning Monjer Khan: 0422 753 262 Daniel Su: 0415 181 411
ISSUE 189 | MARCH 2026 | 02 9630 8000 | PAGE 10 Vacancy by No. of Properties Vacant Properties Managed 1.5% FOR SALE Seven Hills 237m2 approx. Modern Warehouse in Small Complex • Refurbished warehouse • Three-phase power • Full amenities • Access via roller shutter door • 5 parking spaces at the door Monjer Khan: 0422 753 262 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 FOR LEASE North Rocks 264m2 & 266m2 approx. Brand New High Clearance Warehouse • Street front unit • Motorised roller door • Excellent truck access • Mezzanine floor with kitchenette • Security fencing Monjer Khan: 0422 753 262 Jarrad Love: 0408 817 025 BAWDENS ASSET MANAGEMENT 53% increase in Net Rental Bawdens duo Jack Perkins and Warren Truong recently completed the lease renewal and market review for a longstanding client in Auburn. Jack and Warren secured a five-year lease across 3,845 sqm GLA, increasing the net rent from $98.35 per sqm to $150 per sqm, representing a 53% increase in value for the owner. This outcome, and many more, was achieved by strong negotiation skills coupled with a tailored strategy and targeted market evidence. The result strengthens the Assets return for our client as well as secures the long term increased cashflow and realigns the property with prevailing market conditions. FOR LEASE Ingleburn 1568m2 approx. Ideal for Large Vehicle Manoeuvring • High clearance warehouse • Two roller shutters • Functional office area • On grade and dock loading • Secured site Victor Zerefos: 0416 047 288 Paul Chidiac: 0415 887 566
ISSUE 189 | MARCH 2026 | 02 9630 8000 | PAGE 11 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 LEASE Smithfield 927m2 approx. Freestanding Warehouse • Excellent truck & container access • High clearance clear-span warehouse • Secured site with functional yard space • Air-conditioned office and amenities • Three-phase power supply Terry Saba: 0416 175 009 Rohit Kumar: 0434 309 788 Where it all came from Internet Bawdens IPN Signs Clients 45% 4% 30% 21% Our asset management team can maximise the value of your asset. Lease Negotiations Rent Reviews Outgoing Audit Transaction Management Make-Good Management FOR LEASE Seven Hills 260m2 approx. Industrial Warehouse • 7m high clearance warehouse • Modern air-conditioned office • Good truck and container access • Café on site • Suit most users Terry Saba: 0416 175 009 Monjer Khan: 0422 753 262 FOR LEASE Blacktown 316m2 approx. Modern Industrial Warehouse • High clearance warehouse • Air-conditioned office • Secured site • Good truck access/container access • Easy access to main roads Terry Saba: 0416 175 009 Monjer Khan: 0422 753 262 FOR SALE Pendle Hill 1140m2 approx. Rare Freestanding Warehouse & Rear Yard • Excellent location • Great truck and container access • Rare offering • Hard to replace or obtain land this size • Semi main road exposure Graeme Scott: 0418 261 882 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
ISSUE 189 | MARCH 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 and Declining Productivity Impacting Industrial Property Demand Bawdens is Sydney’s leading SME-focused industrial property specialist. The firm, with $3.5 billion in assets under management, routinely releases unique research papers for the benefit of its clients and customers. In this issue, we bring together the findings from recent papers that revealed how interest rates affect industrial sales and how to correctly price industrial property in 2025, to reveal how profit margin performance and productivity are critical to market stability. Since 2024, despite interest rates falling from about 7.4% to about 6%, sales at the firm as a percentage of all deals fell from 22% to 15%. Since 2023, despite inflation falling from 7.0% to 2.4% in 2025, business confidence has noticeably declined. The decline in confidence can be understood as the outcome of the lag effects of increasing costs to businesses from the inflation experienced in 2023 and falling productivity today. Businesses are currently seeing this in their financial statements as falling profit margins. Correctly pricing property to meet current conditions will remain very important for successfully leasing or selling in 2025 and 2026.
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