Sydney’s airport land has been the focus of several investment and leasing deals as businesses leap on rare large-scale opportunities to locate close to major population hubs.

Waste management company Veolia signed a five-year lease with Sydney Airport in November for a 6,000 square metre paved hardstand, in the south-east sector of the Sydney Airport precinct at Mascot, which it will use for assembling and organising residential council bins. 

Veolia will pay a monthly rent of $140 per square metre, reflecting a premium of roughly 30% compared to similar sites on Sydney’s outskirts. This is despite restricted usage for the hardstand since it has not yet been concrete reinforced.

He adds: “The challenge for the new owner will be grappling with high building costs to ensure development feasibility. They will need to achieve a premium rent, but JLL has proven on a nearby location this is doable.”

As an indication of the site’s potential rental income, a 9,603 sqm industrial building and adjoining office at nearby 125 Nancy Ellis Leebold Drive, was leased in October 2024 to campervan hire outfit THL for $271 net per sqm. The deal was brokered by JLL’s Adam Scimone and Tom Gibbeson. 

The warehouse was only recently purchased by Aeria from Australian investment manager ESR in July 2024 for $60 million

While neither the Sydney hardstand, nor the Bankstown land are expected to be used for airport-related operations, both provide tenants an opportunity to be located close to major residential areas and transport routes, which are key considerations for businesses. 

The 300 ha Bankstown Airport precinct is in the local government area of Canterbury-Bankstown, the largest LGA in south-western Sydney, which has a population growth forecast of 19% between 2021-2036.