A developer with the foresight to speculatively build an office-warehouse estate in Melbourne’s west is reaping rewards.
Two occupiers – industrial production giant CSR and cable producer EzyStrut – have signed leases covering 8620 square metres of space within a complex under construction at 2 Key West Place, Derrimut.
They will join Atlas Steels Australia, which was the first on board the new industrial estate.
The leases have been struck on an initial term of five years.
About 18 kilometres from the CBD, the property is within the suburb’s Calarco Drive precinct near the Robinsons Road intersection with the Western Freeway.
Campari Australia, Keuhne & Nagle, Mitre 10, Online Toys Australia, Silk Logistics and Westar Trucks are other occupiers in this pocket.
Colliers International’s Nick Saunders is marketing 2 Key West Place.
Mr Saunders said that following the two recent lease deals, just 5600 sqm is remaining in the approximate 20,000 sqm estate which also includes a large car park.
“The project has been highly successful with 75 per cent committed prior to practical completion by multinational tenants on five year leases,” the broker said. “The timing on when this development was injected into the market couldn’t have been timed better”.
Mr Saunders added that the unique design elements including 10 metre springing height, super awnings and B-double truck drive through access, is also contributing to the project’s appeal.
CBRE broker Harry Kalaitzis added that there has been strong rental growth for properties in the area measuring between 4000 sqm and 8000 sqm – to about $80 – $85 per sqm.