A warehouse in Jamisontown has been snapped up for $2.37 million, demonstrating demand for functional and multi-use assets.

Savills Industrial's Leigh Burges and Peter Steinhour brokered the deal for 25-27 Abel Street and said the auction had a solid turnout which saw multiple bidders vying for the property.

“The six-week auction campaign saw a high level of interest from both investors and owner occupiers,” Mr Burges said.

The 2,596sq m site is approved for an automotive workshop and the large rear yard has a DA approval to construct another 496sq m warehouse.

“This transaction highlights sturdy competition between investors and owner-occupiers seeking assets that present significant future development upside potential,” Mr Burges said.

Located in the City of Penrith, Mr Burges said the close proximity to both industrial and residential areas was a key drawcard for the local buyer.

“Jamisontown is a desirable industrial precinct due to its distance to infrastructure, with connections to the M4 and M7 motorway, allowing easy access to metropolitan Sydney and interstate highways,” he said.