Frasers signs largest existing lease YTD in Melbourne’s South East22 November 2022
A prime industrial office and warehouse facility in a sought- after industrial pocket of Melbourne’s South East has been leased prior to the on-market campaign, driven by high demand and low vacancy in the region.
The 27,272sqm site comes with an office and warehouse facility with a total GLA of 16,065sqm, representing the largest existing vacancy leased in Melbourne’s South East in 2022 to date, leased nine months before the current lease expiry.
The leasing agents from Colliers, Gordon Code and James Stott, secured the lease of 150-168 Atlantic Drive, Keysborough, on behalf of Frasers at a rate of $97.5/sqm net, generating a total annual net income in excess of $1.5 million.
Colliers’ National Director for Industrial, Gordon Code, said interest was high even before the lease was brought to market by various businesses drawn to the ideal location and its surrounding infrastructure.
“Located on the diamond interchange of Greens Road and Eastlink, 150-168 Atlantic Drive is a strategic spot for a high clearance distribution centre with quick access to various parts of Melbourne,” Mr Code said.
Melbourne’s low vacancy rate has continued to place upward pressure on rents, with prime rental growth of 6.7% recorded in Q3 2022. On an annual basis, prime rents have grown by 19.4%, the largest growth level on record.
“Vacancy remains compressed post COVID and is currently sitting at 0.048% in the South East for warehouses above 3,000sqm, which is having a significant impact on market rents,” Mr Stott added.
A global provider of commercial print paper products will be moving into the facility in March 2023, consolidating its overflow warehousing footprint to be closer to the company’s headquarters in Dandenong South.