Sydney, NSW

Sydney industrial and logistics feasibility.

Built for the realities of Sydney industrial: scarce land, sharp yield, and the difference between Western Sydney corridor sites and inner-ring last-mile.

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CountryAustralia
StateNew South Wales
Default contributionsNSW Section 7.11
Common typologyWarehouse and logistics

What shapes Sydney industrial feasibility

Sydney industrial demand sits across the Western Sydney corridor and last-mile sites closer to the city. Land scarcity has compressed yields and pushed rents, but feasibility outcomes still come down to a few drivers: net rent, capitalisation rate at sale or stabilisation, build cost per square metre of GLA, and the cost of land relative to the achievable scheme.

Hard cost is dominated by warehouse base build, hardstand, fire, and tenancy fit. Soft cost includes consultants, council, and finance. NSW Section 7.11 contributions apply to most consents.

Popurise lets industrial developers test a site against build-to-sell, build-to-lease, and stabilised hold scenarios in one model.

Common project types

What Sydney industrial and logistics typically looks like

The typologies that account for most feasibility work in this market.

Single tenant warehouses

Large format warehouses pre-committed to an occupier under a long lease.

Multi-tenant estates

Estates of smaller warehouses leased to multiple tenants, often phased.

Last-mile logistics

Smaller infill sites closer to the city for parcel and urban logistics use.

Cold storage and specialised

Higher specification builds with refrigeration or specific occupier requirements.

Assumptions and outputs

What to test, and what the model returns

The inputs that move outcomes in this market, and the outputs that matter to investment committees and capital partners.

Feasibility assumptions to test
  • Site area, site cover, and achievable GLA.
  • Base rent per square metre and incentive package.
  • Capitalisation rate for stabilised value.
  • Build cost per square metre by specification.
  • NSW Section 7.11 contributions and headworks.
  • Pre-commitment status, leasing void, and stabilisation period.
Outputs that matter
  • Stabilised value and yield on cost.
  • Residual land value at target return.
  • Equity IRR through development and stabilisation.
  • Cash flow with leasing void and incentive period.
  • Sensitivity to rent, cap rate, and build cost.

Models

Relevant feasibility models

The models most often used for industrial and logistics work in Sydney.

Models

Industrial development feasibility model
Default model for warehouse and logistics schemes.
Industrial and logistics operating model
Stabilised operating model for hold scenarios.

Use cases

How developers use Popurise here

The work this tool is built to do, applied to local conditions.

Use cases

Yield on cost analysis
Test yield on cost against current cap rate spread.
Stabilised value analysis
Value at stabilisation, after leasing and incentives.
Lease-up forecasting
Phase leasing assumptions through stabilisation.

Questions

Frequently asked

Can I model a pre-committed building alongside speculative space?

Yes. Each tenancy can have its own rent, term, leasing void, and incentive, so a partly pre-leased estate is straightforward.

Run a Sydney feasibility in 90 seconds.

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