A pair of $10 million sales in Sydney north-west have headlined some strong activity across the business-zoned development property sector for CBRE’s Western Sydney Capital Markets team, which has transacted more than $52 million worth of assets in the class in the year to June 30, bucking the trend of economic uncertainty that has shaped parts of the property sector in 2020.

Food, fuel and hospitality developments account for the bulk of the sales, with the projects situated in high- growth suburbs such as Auburn, Denham Court, Granville, Marsden Park, Schofields, Werrington and Windsor.

The locations span a vacant 922sqm lot to a 17,709sqm former car dealership and include sites on major arterials, namely Parramatta Road, the Great Western Highway and Richmond Road.

At a glance: 

• CBRE’s Western Sydney Capital Markets team has reported strong activity across the business-zoned development property sector, transacting more than $52 million worth of assets in the class in the year to June 30.
• The team of Alex Mirzaian, Robert Dowdy, Lord Darkoh, Andrew Sukkar and Raymond Ahsan transacted 15 business-zoned sites for an average of $5m across the period.
• According to food, fuel and hospitality developments account for the bulk of the sales.

The demand is also shaping settlement times, with an 8,200sqm lot in Schofields exchanging and settling for $5.1m within 24 hours recently.

In total, CBRE’s Alex Mirzaian, Robert Dowdy, Lord Darkoh, Andrew Sukkar and Raymond Ahsan transacted 15 business-zoned sites for an average of $5m across the year ending June 30.

Mr Mirzaian, Head of Investment and Development Sales for CBRE Western Sydney, said there had been increased interest in recent months for business-zoned property in high-profile and main-road locations across Sydney’s west, despite the impact of COVID-19.

211-217 Parramatta Road, Auburn. Source: CBRE 

“As population growth marches on in key south-west and north-west centres, commercial fast food, service station and retail developers are seeing huge potential and return in this type of development," he said.

“These zoned properties are so sought-after, particularly among local investors, we are seeing groups able to exchange and settle in shorter periods than the standard 42-day settlement, including one on the same day.”

Isaac Property, one of the major developers in Sydney’s food and fuel market, has remained active in western growth centres in recent months.

A convenience retail development at 326 Annangrove Road in Rouse Hill, purchased for $10.2m, is among its current projects.

The 16,040sqm precinct will be led by a McDonalds, KFC and service station, and is also set to feature a childcare centre, gym, swim school and tyre centre.

6-18 Macquarie Street, Windsor. Source: CBRE

Director Ben Isaac said the company had continued to "aggressively pursue" commercially-zoned sites during the COVID period as tenant demand remained strong for new stores in its sector.

“Convenience retail, in particular service stations and fast food, has demonstrated itself to be largely pandemic-proof, with the majority of operators continuing to trade at similar or even higher trading figures than before," he said.

“Airports, the CBD and universities have been heavily impacted, however, our core focus is in the suburban regions of Sydney, which have remained strong throughout.”

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