The second property, also in Horsley Park, is a fit out of an existing building. The 33,400 square metre site, which will have the capacity to hold up to 600,000 larger items is set to open later this year.

Amazon Australia operations manager Sandra McNeil said the company’s investment in two new facilities in western Sydney “will expand our operational footprint in this area which will provide customers with wider selection and faster delivery”.

Goodman Australia chief executive Jason Little said the group has invested significantly in the area, and that this development extended “Goodman’s infrastructure spend in the western Sydney employment area to more than $500 million”.

“Most importantly, we’re providing our customer Amazon, with the essential infrastructure it needs to expand and help meet growing consumer needs in western Sydney and beyond,” Little said.

Both of the new fulfilment centres will be equipped with advanced technology to assist Amazon’s team as they pick and pack items, serving Australian shoppers on Amazon.com.au – contributing to the company’s efforts to deliver a smarter, faster and more consistent experience for customers in Sydney around Australia.

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Since opening its first Sydney fulfilment centre in Moorebank in 2018, Amazon has invested more than $1.5 billion in western Sydney, additionally opening a robotics fulfilment centre in Kemps Creek in 2022 and a logistics site in Regents Park.

In nearby Lidcombe, the first dual-level logistics industrial development in Sydney’s central west is targeted for completion by the first quarter of next year.

Central by LaSalle and Hale Capital Partners at 42 Boorea Street in Lidcombe provides 40,000 square metres of warehousing and office accommodation across flexible tenancy sizes starting at 6000 square metres.

The development has been designed to meet the diverse needs of occupiers, accommodating both B-Doubles and semi-trailer access. The Colliers team of Trent Gallagher, Michael Crombie and Tony Durante, in-conjunction with Michael O’Neill, Shaun Timbrell and Rajal Chaudhary of CBRE are marketing the leasing campaign.

It comes as 14 of 22 key industrial precincts are in supply deficit nationally, with four broadly balanced and only a few showing signs of oversupply, according to JLL’s Australian Logistics & Industrial Investment Review and Outlook 2024 Report.

JLL’s head of strategic research Australia, Annabel McFarlane, said key industrial precincts, including Melbourne’s south-east, Sydney’s outer south-west and inner west, and Brisbane’s south are in a supply deficit – the latter despite a record amount of space being delivered across Brisbane in 2023.

She said that while there was some risk of oversupply in south Sydney and Melbourne’s north precincts, demand in those areas had accelerated with sites under construction carrying healthy levels of pre-commitment, which would keep the risk of vacancy in check.

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