- 11,000 square metres of warehouse and unit storage to open in late August
- Office/warehouse unit rates set a new suburb benchmark at $8,190 per square metre
- Available storage units achieved $9,150 per square metre
Sydney’s lower north shore suburb of Lane Cove is set to see a three-storey industrial and self-storage unit complex open its doors.
The Arc Lane Cove complex is located at 16 Orion Road and is expected to see completion in late August 2023.
Designed by SBA Architects and launched by the Hannas Group, the complex will have a gross floor area of around 11,000 square metres and comprises 52 premium self-storage units and 46 industrial units.
Sales for the complex have totalled more than $71 million, with the sale of office/warehouse units setting a new benchmark for the suburb; these units fetched $8,190 per square metre.
The available storage units have achieved $9,150 per square metre.
Architecturally designed complex
The design of the complex has embraced a clean modern feel, while also being designed to allow for flexible work spaces. It includes a premium-level fit-out, three-phase power, and expansive windows that let natural light flow in.
“The purchaser interest in Arc Lane Cove has highlighted the buyer demand for a premium work experience not traditionally found in industrial estates and one that seamlessly integrates warehousing, modern offices and storage,” said Hannas CEO, Danny Hanna.
The appeal of the development
The complex is built in Lane Cove West Business Park to capitalise on the growing demand for industrial and self-storage units in the area. The development will help to slightly improve the low vacancy rate in Sydney’s industrial sector, as Sydney’s northern corridor has a vacancy rate below 1%.
Approximately 70% of the purchasing activity has come from owner-occupiers, who wish to run small construction and trade businesses from their unit.
“Much of the interest has been from business owners looking to locate their head offices close to where they live,” said CBRe’s Caris Kinsella.
Keen interest from locals has been seen for the self-storage units, as some locals “have downsized on the residential front and don’t have the space they need to store boats, caravans and cars,” added Kinsella.
Due to the complex being developed within a landlocked market that is close to the CBD, investors have seized the opportunity to acquire the premium industrial units, which are forecasted to experience strong rental growth.
“Industrial rents in the Lane Cove area [are] 35% above … Sydney’s average, while annual capital growth has averaged 11% since 2011.”
Brad Sutton, Sutton Anderson Director
The development’s proximity to nearby road networks also helped garner interest; the complex is a 15-minute drive from the CBD and within minutes of Epping Road and the M2. Other developments nearby, such as NorthConnex and the Western Harbour Tunnel, will also see improved access to the complex as time goes on.
