Colliers secures final tenants to Nexus Dandenong South Industrial Estate spec-warehouse

30 January 2023

Colliers’ Fraser Pearce, Gordon Code and James Stott have successfully leased the final two spaces at Salta Properties’ latest speculative warehouse development at Nexus Industrial Estate, Dandenong South.

National bathroom, kitchen and laundry product retailer Highgrove Bathrooms has committed to a 6,555 sqm tenancy at 129 Portlink Drive on a 7-year term, while national sustainable packaging supplier PAC Trading will take up 9,627sqm at 10 Cargo Court on a 5-year term.

Through the commitments from Highgrove Bathrooms and PAC Trading, the 32,000 sqm warehouse was fully leased prior to practical completion in December 2022, with Kings Transport having committed to the remaining space within the warehouse earlier in the year.

Colliers’ Gordon Code said leasing opportunities are being snapped up quickly in one of Melbourne’s most tightly held industrial precincts, where vacancy continues to remain at historic lows.

“There are not many opportunities like these available on the market, and when warehouses become available, they don’t stay on the market for long. Rents are continuing to rise, and speculatively-built supply is insufficient to cater for leasing demand,” said Mr Code.

Colliers’ Fraser Pearse added, “Nexus Industrial Estate, Dandenong South, has appealed to a diverse mix of tenants due to its excellent connections to the CBD, the Port of Melbourne, and major commercial, retail and residential areas.”

The fully-leased warehouse is part of the Nexus Dandenong South’s 180 hectares industrial estate, which will play a significant role in improving freight efficiency across the Victorian state with access to the Western Port Highway, and the rail corridor that will connect to the Port of Melbourne, providing benefits from future container terminal access.

Located just 35 km from the CBD, Nexus Dandenong South already houses several major distribution centres for leading businesses, including Woolworths, Bunnings, Visa Global Logistics and Silk Contract Logistics.