Abode Storage unveils exciting development at 1-19 Graingers Road, West Footscray

Adobe Storage is thrilled to announce the development of an innovative retail destination at 1-19 Graingers Road, West Footscray. Situated on the corner of Graingers Road & Sunshine Road, with direct exposure to a bustling intersection, this project promises to redefine the retail landscape in the area.

The development comprises two buildings, including a large format retail showroom spanning 1,440sqm, which will house leading brands such as Supercheap Auto and Snap Fitness. Additionally, a three-level self-storage facility of 2,450sqm will provide convenient storage solutions for the community.

“We are excited to introduce this dynamic retail and storage complex to West Footscray,” said Matthew Taylor, Director at Adobe Storage. “With its prime location and diverse offerings, this development will meet the evolving needs of residents and businesses in the area, while contributing to the vibrancy of the local economy.”

Designed by Melbourne-based retail architect TRG and managed by retail project leasing specialist Leedwell, the project has been meticulously planned to maximise functionality, accessibility, and visual appeal. The development was hotly contested, reflecting the high demand for large format retail space in the market.

“The demand for large format retail space in Victoria has never been higher,” commented Tom Perkins, Director at Leedwell. “With record low vacancy rates and aggressive rental growth, this project addresses a critical need in the market and reinforces our commitment to delivering innovative solutions that drive economic growth and enhance community well-being.”

The large format retail market has enjoyed aggressive rental growth for the past four years and rental growth rates are forecast to stabilise toward our 10-year long run average of 2.9% by 2025. Future rents and capital growth are likely to stay positive beyond this point due to the limited supply pipeline (711,845 sqm between 2023 and 2026) and the fact that Australia has one 2nd highest population growth rates of the developed world, with 1,459,900 people to be added over the same four-year period.

This reveals a chronic LFR supply shortage in comparison to population forecasts (0.49 sqm per person added) if the current supply pipeline holds. Furthermore, LFR assets are fleeting within in-fill suburbs of major cities, especially the Eastern Seaboard, due to their likeness to industrial assets and strategic placement near growth centres. With record low residential vacancy (sub 1.5%) in inner-city areas, population growth (2% over FY23) will be channelled to growth centres on the outskirts of major cities.

Construction is due to commence shortly, with completion expected in Q4-2024. As the project progresses, Adobe Storage remains dedicated to delivering this exciting large format retail and self storage hybrid developments that offer a new and exciting investment grade asset.