ISSUE 188 | FEBRUARY 2026 | 02 9630 8000 WWW.BAWDENS.COM.AU I N D U S T R I A L 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 2025 Industrial Space Survey
INSIDE THIS ISSUE OF INDUSTRIAL PROPERTY NEWS Bawdens linked industrial vacancy trends with business behaviour. ISSUE 188 | FEBRUARY 2026 | 02 9630 8000 | PAGE 2 Jack Perkins: Associate Director Asset Management, Joumana Tarabay: Director Asset Management, Robert Ally: Director and Terry Saba: Director 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 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. 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
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 188 | FEBRUARY 2026 | 02 9630 8000 | PAGE 3 Join our team as a Sales & Leasing Executive Hiring WE ARE Scan the QR code to find out more and apply. Leasing or buying Leasing Buying 37% 63% FOR SALE 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 392-1,320m2 approx. Prime Industrial Land in Smithfield Achieves Outstanding Auction Result The recent sale of a 5338m² vacant industrial parcel at 93 Victoria Street, Smithfield has marked a notable achievement in the local industrial property market. Boasting excellent street frontage and exposure along one of Smithfield’s busiest arterial roads, the site attracted significant attention from both investor and owner-occupiers in the lead-up to the auction. Following competitive bidding, the property was successfully sold under the hammer for $10.5 million + GST to owner-occupier, who identified the site’s strategic location as key driver in their purchase decision. The sale price reflects a strong land rate of $1,967 per square metre + GST, underscoring the continued demand for well-located industrial land within Sydney’s central west industrial precinct. This result demonstrates both the scarcity and desirability of quality industrial land in established logistics and manufacturing hubs such as Smithfield, with owner-occupiers remaining active and competitive in securing sites suited for long-term occupational use. This deal was successfully transacted by Bawdens Director Rob Ally. BAWDENS NEWS YSOLD BY
ISSUE 188 | FEBRUARY 2026 | 02 9630 8000 | PAGE 4 Smithfield Fairfield East Telopea Thornleigh Rydalmere Blacktown Macquarie Fields Strathfield South Parramatta Ryde 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 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 9). 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.
ISSUE 188 | FEBRUARY 2026 | 02 9630 8000 | PAGE 5 Space in demand 0-500m² 500m² - 2000m² >2000m² 39% 35% 26% 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. Follow us on LinkedIn • 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 www.linkedin.com/company/bawdens-industrial 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. FOR LEASE Guildford 680m2 approx. Prime Multi Level Retail • Street front • Recently refurbished • High foot traffic • Modern upstairs office • Suits a variety of users Anthony Barbanera: 0410 914 662 Blacktown’s Oldie Sells for $6,300,000 Owner-occupier Isaco has secured an established freestanding warehouse in Blacktown as part of a relocation from Wetherill Park. The property, located at 12 Bessemer Street, is fitted out with cranes and has a total building area of 1528m² on a 1954m² land site. The property was sold for $6,300,000. This deal was successfully completed by Bawdens Associate Director Victor Zerefos and Sales & Leasing Executive James Zerefos. BAWDENS NEWS YSOLD BY
ISSUE 188 | FEBRUARY 2026 | 02 9630 8000 | PAGE 6 BAWDENS ASSET MANAGEMENT Strategic Negotiation delivers long awaited Rent Reversion Senior Asset Manager Cameron De Sousa has once again delivered a standout result for his client, securing a $40,000 net rent increase as part of negotiating a new lease term – taking the current rent of $140,608 to $180,000 net plus GST. With the previous rent significantly trailing current market conditions and the owner looking to enjoy some rent reversion to meet inflationary pressures, Cameron conducted a detailed review of comparable leases and recent market movements to build a compelling case for revised terms. His data-driven approach, paired with transparent communication with the tenant, ensured all parties understood the rationale behind the increase, laying the foundation for a smooth and cooperative negotiation. The negotiated uplift not only strengthens the property’s income profile but also reinforces the long-term value of the asset. By achieving this result without jeopardising the tenant relationship, Cameron demonstrated the balance of firmness and professionalism that Bawdens’ Asset Management team is known for. His strategic work ensures the owner benefits from improved returns. Vacancy by No. of Properties Vacant Properties Managed 1.6% Simply search ‘Bawdens’ on Facebook. Like us on Facebook • Stay informed • Find out what transactions we have just completed • Be up to date with the current market offerings Our asset management team can maximise the value of your asset. Lease Negotiations Rent Reviews Outgoing Audit Transaction Management Make-Good Management FOR SALE FOR LEASE Arndell Park 235m2 approx. Smithfield 927m2 approx. Modern High Clearance Warehouse • Great truck & container access • Great connectivity to major motorways • Central location • Air-conditioned mezzanine office • On-site amenities Rishad Kharadi: 0405 732 041 Rohit Kumar: 0434 309 788 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
ISSUE 188 | FEBRUARY 2026 | 02 9630 8000 | PAGE 7 Vacancy Rate by m2 Vacant Properties Managed 2.6% 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 We currently support the following organisations: Charitable Foundation FOR SALE Arndell Park 578m2 approx. Near New Warehouse • Clear span warehouse with 6.5m to 7.2m clearance • Container & truck access • Additional mezzanine storage • Rear lane access to wide roller door • 7 on-site car spaces Anthony Barbanera: 0410 914 662 BAWDENS NEWS YSOLD BY Private Investor Secures Telopea Commercial Asset in $2.15 Million Transaction A private investor has purchased the commercial property at 63-65 Tintern Avenue, Telopea, concluding a successful Expressions of Interest (EOI) campaign. The asset was purpose-built by the vendors’ parents in 1988 and, having served the family for decades, had recently become surplus to the needs of the next generation. The property comprises four office suites, each approximately 80m², with leases expiring in January 2026. The short WALE provides the incoming purchaser with an opportunity to reposition, refurbish, or re-lease the building to maximise future value in a tightly held commercial precinct. The sale achieved $2.15 million, equating to $6,304 per square metre, reflecting strong demand for well-located suburban commercial investments. The transaction was professionally negotiated and completed by Bawdens Associate Director Anthony Barbanera.
ISSUE 188 | FEBRUARY 2026 | 02 9630 8000 | PAGE 8 BAWDENS ASSET MANAGEMENT Turning Insight into Opportunity During a routine inspection, Bawdens Asset Managers Tracy Le and Sanjana Wagh identified that the tenant was quickly outgrowing their existing office space and looking at options to vacate. Noticing that an adjoining suite had recently become vacant, they proactively explored whether the tenant required additional room to support their expanding operations. After confirming the opportunity with the owner, who was delighted at the prospect, they presented the adjoining space to the tenant as a seamless extension of their current premises. Through collaborative and well-structured negotiations, Tracy and Sanjana secured a new 3-year lease that incorporated the additional area. Their attentiveness during inspections, combined with clear communication and a solution-focused approach, ensured the owner retained a valued tenant while eliminating downtime on the vacant suite. To ensure the transition was smooth, Tracy and Sanjana also project-managed the works required to connect the two suites. All parties were thrilled with the result—an excellent example of insight, initiative, and proactive asset management in action. For the latest media releases & market trends visit our website www.bawdens.com.au Website Enquiry Real Commercial Commercial Real Estate Google Other 33% 32% 12% 23% FOR LEASE FOR LEASE Blacktown 172m2 approx. North Rocks 183m2 approx. Industrial Warehouse • High clearance • Good truck/container access • Easy access to main roads & transport • Secured complex • Three-phase power Terry Saba: 0416 175 009 Monjer Khan: 0422 753 262 Storage Facility • Roller door entry • 5.5m clearance • Three-phase power • Two bathrooms, kitchenette • Minutes from Parramatta CBD Jarrad Love: 0408 817 025 FOR SALE Seven Hills 237m2 approx. Clean Tidy Unit • Refurbished warehouse • Three-phase power • High clearance • Ideal for warehousing, showroom and administrations • Parking at the door Monjer Khan: 0422 753 262
ISSUE 188 | FEBRUARY 2026 | 02 9630 8000 | PAGE 9 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. Strong Demand for Blacktown’s Freestander Relocating from Smithfield, Taihe Group Pty Ltd has secured a freestanding warehouse at 5 Chicago Avenue, Blacktown. This 677m² property offers warehouse space plus a small undercover area. It has been leased on a 3 + 3 year term at the asking rental of $135,000 pa net + outgoings and GST, which reflects $200 per square metre. This deal was successfully completed by Bawdens Director Terry Saba and Sales & Leasing Executive Monjer Khan. BAWDENS NEWS YLEASED BY
ISSUE 188 | FEBRUARY 2026 | 02 9630 8000 | PAGE 10 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 Asset Management Vacancy Rate Office Industrial Retail 3.28% 0.59% 3.57% BAWDENS ASSET MANAGEMENT BAWDENS ASSET MANAGEMENT Protecting the Asset and Compliance During a routine review of a Duplex site exclusively managed by Bawdens, Associate Director Esperance Saad identified that the tenants had created an unauthorised opening between the two adjoining units. This modification posed potential structural and fire safety risks. Acting swiftly, Esperance engaged both a structural engineer and a fire engineer to assess the integrity and compliance of the alteration, with all investigative and reporting costs appropriately charged to the lessee. With safety confirmed, but the unauthorised works still requiring formal rectification, Esperance is now establishing the costs associated for a full reinstatement of the dividing wall. To ensure the owner’s financial position is protected, she is arranging for the bond to be increased to fully cover the reinstatement cost. This proactive and firm management approach safeguards the property’s compliance, ensures the tenant meets their obligations, and reinforces Bawdens’ commitment to protecting owners’ long-term asset value. 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
ISSUE 188 | FEBRUARY 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. Where it all came from Internet Bawdens IPN Signs Clients 45% 4% 30% 21% 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 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 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 Successful Sale: Auscomp Secures New Northmead Facility to Support Expansion Owner-occupier Auscomp, a leading specialist in the warehousing and distribution of computer products, has purchased the property at 2/1B Redbank Road, Northmead as part of its ongoing expansion strategy. The company secured the 1,321m² industrial facility for $5,650,000 + GST, recognising the property’s suitability for its growing operational needs. The spacious, high-quality warehouse provides the ideal platform for Auscomp to increase capacity and streamline distribution as demand for its products continues to rise. The transaction was successfully negotiated and completed by Bawdens Sales and Leasing Executives Rohit Kumar and Jarrad Love, who facilitated a smooth deal between all parties involved. BAWDENS NEWS YSOLD BY
ISSUE 188 | FEBRUARY 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 2025 Industrial Space Survey Bawdens is one of Sydney’s Leading Specialist industrial agencies. 2025 has been a year of changing market conditions to date. Business profit margins have experienced pressure as costs increased, and confidence fell early in the year. Whilst a recovery in consumer confidence is anticipated later this year, which may support a rebound in profit margins, certain sectors within the industrial property market have remained in demand. The firm completed an SME survey of all lease transactions completed for the calendar year to date where the area of the building leased was less than 1000m². The results reveal the most popular sized building areas as a percentage of all transactions surveyed as follows: Perhaps not surprisingly buildings with an area of less than 250m² accounted for 42% of all deals completed. Highlighting the resilience of small business formation, and availability of cash, with activity remaining intact despite challenging conditions. Larger businesses requiring space between 500-750m² were less active with just 10% of property deals accounting or deals with this size. However, established businesses seeking more than 750m² accounted for 25% of all deals highlighting the benefits of mature cash flow from established enterprises. % Of All Deals Size 42% 0-250m² 23% 250-500m² 10% 500-750m² 25% 750-1000m²
bawdens.com.auRkJQdWJsaXNoZXIy MTI3ODI1