Logistics occupants are continuing to drive Melbourne’s industrial leasing market – with three major deals agreed in recent months.
West of Melbourne, Allied Seafreight has committed to a 6130 sqm property known as Warehouse B, 96-98 William Angliss Drive, Laverton North (pictured, top). Controlled by 151 Property, the facility became available at short notice and was leased within four weeks of agents Harry Kalaitzis, Todd Grima and Tom Hayes, of CBRE, being appointed.
Allied Seafreight is a specialist wharf cartage and 3PL (third party logistics) business. Its new site is 12 kilometres from the Port of Melbourne and 16 kilometres from Melbourne Airport.
In Tullamarine, Royal Express Group has doubled its footprint in the city – committing to Kathmandu’s former distribution centre, a 10,049 square metre office warehouse at 55-65 Sky Road.
The logistics company will now vacate a 4000 sqm building in the neighbouring suburb of Westmeadows.
REG will pay a net rent in the order of about $85 per square metre for the new premises.
Mr Eramo said industrial vacancy rates in Melbourne’s northern suburbs remained tight and that demand for larger scale properties was strong.
“Vacancy of buildings in excess of 4000 sqm remain at below 1 per cent of total built form,” Mr Eramo added.
Again negotiated by CBRE (Mr Eramo with colleague James Jorgensen), the 2.5 year lease has been agreed at a net rent circling $85 per sqm.
Mr Eramo said there is lack of genuine A-grade facilities available to service demand at the moment.
“Developers should be very confident in pressing the button on their permitted spec projects in the Dandenong South precinct.”
According to a recent research report by commercial agency Savills, the Transport and Logistics sector has been responsible for 45 per cent of industrial rent deals around Melbourne in the last year.
Elsewhere in Melbourne recently, Silk Contract Logistics signed for a 20,377 sqm warehouse at the West End Industrial Estate in Derrimut. CS Logistics has set up near to Silk – signing for a 20,213 sqm complex at the West Industry Park, Truganina.