Sydney’s rising industrial market created the “best time in history” for owner-occupiers to sell their long-held assets and lease instead, according to Jack Moroney, director of property at TM Insight.

The supply shortage in the capital city’s industrial market pushed land prices up by 36.2% in the year to June, according to data from m3property.

“The current booming industrial property market is creating the best time in history for owner-occupiers to sell their assets, reinvest into their business and rationalise their footprint,” Moroney said.

Private owner-occupiers are selling their long-held assets, with publicly-listed companies and corporations also selling their manufacturing sites, according to Moroney.

"Institutional and major private investors are willing to pay a premium for sites in inner and middle-ring locations, as demand for last-mile logistics increases in the era of online shopping," he said.

Vacant sites or those on short-term leases are also in demand, especially if the property has the potential for redevelopment or rezoning, according to Moroney.

"Western Sydney has been a hot area for such investments. For instance, ISPT bought a 13-hectare property in Greystanes for around $60m in 2018. In the same year, Leda Group purchases an eight-hectare industrial site in Milperra for $52m," Moroney said.

Many owner-occupiers are also using their funds from sales to upgrade their logistics and operations, as retail and logistics businesses are pushed to stay competitive.

“By unlocking the value of their real estate holdings, owner-occupiers are able to invest in systems such as automation that can make their operating costs significantly cheaper and reduce their real estate footprint,” he said.