Goodman seals deal with Amazon at Oakdale park
Industrial property giant Goodman Group has expanded its exposure with the online retail behemoth Amazon after signing a lease at the $1.5 billion Oakdale West industrial park in Sydney’s west, jointly owned with Brickworks.
Amazon will take out close to 200,000 square metres of space over a 20-year lease in what will be a high-tech robotic distribution centre. It will be the first multi-level warehouse constructed in the country.
The site, around the same land size as Taronga Zoo or 22 rugby fields, will be home to about 11 million items. CBRE industrial & logistics occupier and leasing teams advised Amazon and Goodman.
Oakdale West is part of the wider Oakdale Industrial Estate, which is close to Sydney’s second airport in the west and adds to the lease by Amazon at the Goodman site at Moorebank in South Sydney and a new warehouse in Brisbane.
Amazon will be the second customer to commit to Oakdale West following Coles Group.
Goodman’s general manager Jason Little said the group’s strategy is to provide “our customers with high-quality properties in strategic locations and this new Amazon robotics fulfilment centre is a perfect example of this”.
Macquarie Equities analyst Darren Leung said the deal shows that industrial markets are the most resilient property asset class.
“Within industrial, demand for prime assets remains the strongest which is where Goodman is exposed,” Mr Leung said.
“A second distribution centre in NSW is a further signal of Amazon’s intent to increase market penetration which may accelerate e-commerce take up; ultimately impacting tenant sales within retail malls.”
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