Frasers signs largest existing lease YTD in Melbourneโ€™s South East

A prime industrial office and warehouse facility in a sought- after industrial pocket of Melbourneโ€™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 Melbourneโ€™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.

Colliersโ€™ 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.

โ€œLocated 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,โ€ Mr Code said.

Melbourneโ€™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.

โ€œVacancy 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,โ€ 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 companyโ€™s headquarters in Dandenong South.

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