Businessman walking in airport

Western Sydney Airport: Implications on Property and Business Owners in the region

Luke Mitchell ||

The new Western Sydney Airport at Badgerys Creek is set to have a profound impact on both residential and commercial property within the Western Sydney Growth Corridor.  Thanks to new developments surrounding the new Aerotropolis, as well as a range of other investment commitments, the Federal Government is expecting significant economic and employment growth within the region in the years to come.

Back in in 1986, the Federal Government purchased 1700 hectares of land at Badgerys Creek – with the proposed Western Sydney Airport having been the centre of significant and ongoing political debate ever since.  Two groups of clear winners that have emerged thanks to this development are property and business owners located within the Greater Western Sydney region.

It has been said that the Greater Western Sydney region surrounding the new airport is currently Australia’s third largest economy, with the associated population set to grow by up to 50% by the early 2030s.  In addition to this expected growth, the government’s commitment to investment in infrastructure is maintaining the connectivity of local businesses to consumers.  The 2017-18 budget committed $3.6 billion to upgrade road and transport linkages to the region, providing businesses located within the region with further opportunities to thrive.

A win for property owners in nearby suburbs

The recent downturn in Sydney’s housing market, most notable over the past 6 months, has been a talking point for analysts, buyers and sellers alike.  However, property owners in the outer-west and south-west suburbs are still, at least in the medium to longer term, able to field premium offers from investors.  This is largely thanks to a notable shortage in available industrial and commercial real estate space, particularly in and around the new airport precinct.

How this impacts your lease 

An increase in demand coupled with a shortage in the supply of commercial and industrial spaces within the region is set to provide landlords with heightened negotiating powers over their tenants.
As such, prospective tenants looking to negotiate lease terms for properties within the region surrounding the Western Sydney Aerotropolis can expect to face a wide range of potential issues, including:

  • An upside influence on rental amounts for the region;
  • A lowered ability to secure generous incentives;
  • Higher than normal increases in rent;
  • A lower likelihood of landlords entertaining requested amendments to standard lease terms;
  • An unwillingness by landlords to vary terms for unforeseen circumstances (e.g. power upgrades); and
  • An increase in pressures to sign leases based on the growing competition between potential tenants.

For commercial and retail tenants, the key to negotiating in this environment is to ensure that you undertake your due diligence prior to proceeding with negotiations, and similarly ensuring that you include as much detail in your letter of offer as possible – as this will require the landlord to include such details in the lease.

The forecasted economic growth associated with the Western Sydney Airport is an enticing opportunity for businesses seeking to expand their retail or commercial operations.

As Western Sydney’s leading law firm, Coleman Greig can assist clients with both residential and commercial property matters within the Greater Western Sydney Region and beyond.  If you have a query relating to any of the information in this piece, or if you require assistance with regard to the negotiation of either a retail or commercial lease, please don’t hesitate to get in touch with our Commercial Property team today:


Send an enquiry

Any personal information you provide is collected pursuant to our Privacy Policy.


More posts

SafeWork NSW
SafeWork NSW releases new strategy to address psychosocial hazards

On 22 May 2024 SafeWork NSW introduced a new strategy to address psychological and psychosocial hazards. The SafeWork NSW Psychological Health and Safety Strategy 2024-2026 establishes new supports for employers regarding their duties in preventing psychosocial harm in the workplace.

roles in the strata scheme
Understanding roles in the strata scheme

A strata scheme is a building or group of buildings that have been divided into lots which can be apartments, villas, offices, units or townhouses. This will be articulated in the strata plan.

Airbnb home
Can I put my home on Airbnb?

Airbnb is a form of short-term rental accommodation. To add your property to Airbnb in NSW, you are required to meet several laws and regulations governing short-term rentals.

liquidators required to seek approval
When are liquidators required to seek approval to retain legal counsel?

When does a liquidator (or the company he or she is appointed to) need court, creditor, or committee approval to validly retain a solicitor to act in a liquidation matter which is likely to extend for longer than three months?  The answer to this question has only recently been settled.

Proposed changes to building
Proposed changes to building and construction law in NSW

The Building Bill 2022 (the Bill) is the key avenue through which the NSW Government has proposed to reshape the culture of the building and construction industry by eliminating poor performance and improving the quality of building statewide.

Dismiss an employee
Can you dismiss an employee who fails to return to the office?

Slowly but surely, most employers are requiring employees to return to the office for at least a portion of their working week. Some employers continue to struggle with employees resistant to returning to the office or those who have an expectation that they can continue to work from home whenever it suits them.

Phoenixing in Construction
New powers to combat phoenixing in construction

The rise of phoenixing in the building and construction industry in Australia in recent years has proved a significant challenge to regulators. Mismanagement of time or cashflow can quickly propel businesses into insolvency.

© 2024 Coleman Greig Lawyers  |  Sitemap  |  Liability limited by a scheme approved under Professional Standards Legislation. ABN 73 125 176 230