Demand for industrial-zoned land in Northern Melbourne’s logistical hotspot is continuing to intensify, with developers and owner occupiers competing for opportunities in highly sought- after industrial pocket.
A local developer has paid $4.427 million for a 3,850sqm block, permitted for a 2,444sqm office and warehouse facility.
Fitzroys’ Brent Glassford and Marco Sandrin sold 25 Longford Road, Epping in conjunction with John Georgiou of NAI Harcourts on behalf of a private family.
The agents achieved a land rate of $1,150 per sqm on the transaction.
Recent comparable industrial land development sales in the suburbs suggest that demand for industrial-zoned land is only intensifying,” Glassford said.
“Opportunities to secure a sizeable block of industrial land within a supply-constrained area are incredibly rare. Melbourne industrial land supply is at a historic low.”
Sandrin said the buyer of 25 Longford Road has developed similar industrial projects to the permitted plans for the site and will build accordingly.
“They have other holdings in the area and they’ve seen and experienced the huge demand from tenants in Epping for themselves,” he said.
The facility will comprise a 2,062sqm warehouse with roller shutter doors, a 382sqm corporate office over two levels, large canopy, dual crossovers and on-site staff parking.
“Construction costs, labour shortages and barriers to funding have made developing some projects more difficult, but the huge demand for quality industrial facilities, rental prospects and ongoing growth of Epping make this an attractive project to take on,” Sandrin said.
Sandrin said the site offers strong rental prospects and growth potential in the coming years. Fitzroys is forecasting further rental growth in Melbourne’s northern industrial market amid overwhelming demand for high-quality in well-connected locations to cater to higher inventory and storage space demands and last-mile efficiencies.
“This site presented an opportunity to develop a corporate facility close to Oherns Road, Cooper Street and the Hume Freeway, and offers excellent access to the M80 Ring Road, opening up access to a large proportion of Melbourne’s population and Melbourne Airport,” Glassford said.
Nearby are the Pacific Epping regional shopping centre, the Melbourne Wholesale Fruit Vegetable & Flower Market, the Northern Hospital, Epping Private, Melbourne Polytechnic, the Mantra Hotel, Costco Supermarket and a number of major brands and showrooms, as well as a number of new major industrial estates. The suburb pipeline includes Riverlee’s $2 billion mixed-use development at the former Epping Quarry, and Sandhurst Retail and Logistics’ $500 million, 140-hectare industrial estate.