A boutique concrete hardstand facility in Melbourne’s western industrial market has been leased at a record rental rate, highlighting the continued strength of occupier demand for well-located industrial outdoor storage assets.
The property at 2 West Court in Derrimut has been leased to national tyre collection company on a long-term 10-year lease with options, with the tenant securing the site to support its tyre storage and recycling operations.
Comprising a 3,866sq m site with just a small 65sq m office and amenities building, the property includes a substantial concrete hardstand area and permits for waste recycling operations.
It was leased at a record rate of $80 per square metre net, plus GST and outgoings, setting a new benchmark for comparable hardstand assets in the precinct.
The leasing transaction was negotiated by Steve Jones and Andrew Gallucci of Knight Frank on behalf of the landlord.
The new tenant will relocate to the property from its current premises in Melbourne’s inner west in an expansion move, set to significantly increase their processing and export capacity.
The facility has features including security systems and cameras, an automatic gate, a lunchroom with amenities and good lighting for night operations.
Mr Jones said the transaction reflected the intense demand currently being seen across Melbourne’s industrial outdoor storage market.
“Hardstand sites continue to be one of the most sought-after asset types in Melbourne’s industrial sector, with occupier demand significantly outstripping supply,” he said.
“Achieving a record rate of $80 per square metre for a boutique hardstand facility demonstrates the strength of the market and the premium occupiers are willing to pay for quality sites with functional improvements and strategic locations.
“Industrial outdoor storage has become a major focus for a broad range of users, from transport and logistics operators through to recycling businesses and infrastructure-related occupiers, all competing for a limited pool of available sites.”
Mr Gallucci said the property’s permit profile and location within Melbourne’s western industrial corridor were key factors underpinning the strong outcome.
“2 West Court provided a rare opportunity to secure a fully improved hardstand facility with existing operational infrastructure and permitted use in one of Melbourne’s most tightly held industrial precincts,” he said.
“The site’s accessibility to major arterial road networks and proximity to Melbourne’s western freight and logistics hubs made it particularly attractive to occupiers seeking immediate functionality.
“Quality hardstand opportunities remain extremely limited, and we continue to see strong competition for sites that offer scale, security, existing improvements and development-ready infrastructure.”
Related Articles
