Recreation operator House of Pickle has secured its first South Sydney location, committing to a long-term lease over a 2,000 sqm industrial building in Botany.
The operator has leased 21 Underwood Avenue for 10 years, representing, representing one of the longer lease commitments seen from a recreation occupier in the South Sydney market.
House of Pickle, which currently operates six locations across NSW, will use the converted industrial facility to establish its first presence in Sydney's south. The Botany site will become the group's seventh facility.
The lease was negotiated by Cushman & Wakefield's Nick Mallett and Greer McLeod on behalf of the private landlord. The transaction achieved a strong rental outcome, highlighting the growing role that recreation and other non-traditional occupiers can play in absorbing older industrial stock where a building's size, configuration and location align with their requirements.
Cushman & Wakefield's Nick Mallett said the length of the commitment demonstrated the depth of demand from recreation and alternative-use occupiers seeking larger premises in established metropolitan locations.
"Securing a 10-year commitment from a recreation operator is a significant result and one of the longer lease terms we've seen for this type of use in the market.
"House of Pickle already has a strong presence across NSW, and Botany provided an opportunity to establish its first location in Sydney's south, within a large metropolitan catchment.
"It also shows that older industrial buildings can attract quality long-term occupiers where the fundamentals of the property suit their operational needs."
Cushman & Wakefield's Greer McLeod said the deal reflected growing demand from recreation businesses for industrial-style accommodation.
"We're seeing a broader range of occupiers competing for suitable industrial buildings, with recreation operators particularly attracted to the larger floorplates and flexibility these properties can provide.
"For House of Pickle, the 2,000 sqm building offered the scale needed to establish a meaningful South Sydney location, while Botany provides access to a significant surrounding residential and employment population.
"Botany continues to evolve, and so does the tenant profile. We're seeing demand from a much broader range of occupiers, with recreation, fitness and alternative-use businesses increasingly considering industrial assets. For landlords, that's creating new opportunities to reposition older buildings and secure strong long-term occupancy".