Amazon chooses Dandenong South for first Australian fulfilment centre

Amazon appears to have chosen Melbourne’s Dandenong South as the location for its Australian fulfilment centre.

The electronic commerce and cloud computing giant is advertising several warehouse related jobs for a 400-metre long facility in the suburb.

Speculation has existed since April, when Amazon confirmed it was coming to Australia, as to where it would establish its first major factory.

It is understood the online retail giant is circling a Dandenong South site, owned by Pellicano and formerly occupied by Bunnings.

That property would be 29 National Drive, Dandenong South (pictured, top), which has been for lease this year promoted as “the best distribution centre in Melbourne’s south-east”.

With 77 car spaces, the 24,387 sqm factory is asking $75 per sqm, per annum.

This property has expansion potential being beside a large vacant tract also owned by Pellicano (story continues below).

It has been speculated Amazon will longer term open a second – perhaps larger Melbourne warehouse – in the west.

Globally, the online retail giant has a solid relationship with Goodman (last May the groups signed a major lease deal for nearly 100,000 square metres in southern California’s Eastvale).

The landlord controls much land in the Dandenong area – an established industrial hub with several high profile occupants – including the Power Park Industrial Estate at 197-219 Discovery Road, occupied by BJ Ball, UPM Raflatac and ITW.

Melbourne is renowned in commercial property circles as “Australia’s industrial capital” – having amongst the lowest average industrial rents in the country.

The Port of Melbourne is also the country’s busiest for general cargo.

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Marc Pallisco

A freelance property writer and experienced analyst, Marc is the co-founder of