Industrial property in Sydney is available across all categories, including prime grade properties, high technology parks and distribution centres, with most located to take full advantage of transport infrastructure.

Capital values for prime industrial property in Sydney are among the most competitive in the Asia Pacific. Prospective owner-occupiers can purchase prime floor space at significantly lower prices in Sydney's industrial market than in major business centres such as Tokyo, Singapore and Hong Kong.

The softening of the global economic climate since late 2008 has curbed rental growth for industrial property. Annual gross face rent has become more attractive and affordable in Sydney with rates for 2008 at $150 per square metre compared with $161 per square metre in 2007. By contrast it has risen in Tokyo, Singapore and Hong Kong over the same period.

According to Jones Lang LaSalle, the uncertain economic outlook and inability of businesses to raise capital is likely to weaken tenant demand and scale back plans for new supply of construction. While supply in Australian industrial markets has come down compared to previous years, according to Jones Lang LaSalle, Sydney is better positioned and continues to lead Australia in new supply. CB Richard Ellis report that in 2008, industrial property completions in Sydney reached record levels during 2008, with more positive levels of industrial production expected to pick up during 2010 – 2012.