Industrial warehouses drives strong competition despite rent increases30 June 2023
Colliers Stephen Ryan and Nick Saunders have successfully leased a 4,000 sqm transport facility located at 19-29 Link Court in Melbourne’s Brooklyn to ArcStructural on behalf of GM Property Group.
The warehouse is within the highly sought-after inner West Industrial Precinct, located in Melbourne’s Western growth corridor, Australia’s largest industrial market on a substantial industrial land of 18,220 sqm.
Stephen Ryan, Associate Director at Colliers, explained, “We ran an Expression of Interest leasing campaign for this property due to the unique low site coverage and container-rated hardstand opportunity.”
“We received eight offers with the rent increasing by $150,000 on the previous lease, which was signed in 2021, providing the owners the opportunity to pick the most suited tenant for their building and a new annual net income of $900,000.”
ArcStructural has committed to a five-year lease with the option of an additional five years. The new tenant was particularly attracted to the property due to its inner-west location. ArcStructual saw major logistics savings in leasing this asset, which will be used as a staging facility to deliver structural steel to the CBD for the dozens of residential construction projects underway.
The property is located approximately 12.6km from the CBD, 21.8km to the Tullamarine Airport and under 11km to the Port of Melbourne, in the tightly held Inner West Industrial Precinct, seeing significant development growth.
Colliers’ National Director, Nick Saunders, said, “The inner west is gentrifying with multiple large- scale upcoming industrial developments that are usually found and sort after in the outer west in locations like Truganina and Tarneit. Aliro, HBB and Stockland will collectively be injecting 150,000 sqm in the next 18 months of new industrial facilities.”
“The property will benefit significantly from the West Gate Tunnel Project, drastically improving traffic flow and travel times to and from this property. The facility is truly located for success as it also benefits from other major long-term western infrastructure projects, including the M80 Ring Road upgrade, Inland Rail, and Port Rail Shuttle,” Mr Saunders concluded.