Strengthening tenant demand for industrial property in Melbourne’s west has sparked more than 100,000sqm of leasing activity in a 30-day period.
Mr Grima commented on the upturn in leasing activity: “The recent spate of transactions has been driven by several factors; including rapid growth in the ecommerce sector; occupiers being pushed out of the fringe by redevelopment and increased rents and population growth driving increased demand for goods.
“Industrial vacancy in the west is now the lowest it’s ever been, with current vacancy levels hovering at 1.7% – reflecting just 232,000sqm of stock in the market.”
Among the recent transactions, Hitachi has inked a long-term lease on an 11,790sqm distribution centre at 34-36 Banfield Court, Truganina. The property, which provides excellent access to Princess Freeway, features modern office amenities and high clearance warehouse. It was leased for $80 per square metre (net).
In a second transaction, HB Commerce has leased a 30,885sqm office/warehouse facility at Maker Place in Truganina from lessor, Frasers Property, for three years. Similar rentals in the area range from between $75-$80/sqm (net).
In Laverton North, Austpac Transport & Logistics has signed a lease on a 24,662sqm property at 32-58 William Angliss Drive. The property, owned by Charter Hall, will accommodate Austpac Transport & logistics relocation from Port Melbourne. Rentals in the area range from between $75 – $80 per square metre (net).
CBRE’s Tom Hayes said the uptick in tenant demand was placing upward pressure on industrial rents in the area.
“Industrial rents have increased by between $3 – $5 per square metre over the past 18 months – further amplifying competition for the limited stock available,” Mr Hayes explained.
“This pressure is sparking development activity, with institutions and large privates continuing to speculatively develop, with 212,633sqm due for completion in the next six months. Of this, around 74,748sqm is already committed and an additional 54,870sqm is under heads of agreement.”