Melbourne’s Keysborough industrial market continues to attract strong occupier demand and rental growth

11 June 2024

Colliers’ Industrial and Logistics team have successfully leased a office/warehouse asset prior to practical completion for $654,385 net rent per annum on behalf of a valued private client. Associate Directors Sam Hibbins and Luke Lowden, managed the leasing campaign.

Located on 29 Bass Court, Keysborough, the brand new office/warehouse has a building area of 4,513 sqm and features high clearance warehousing, corporate office space over two levels and a 16.5m hardstand with canopy cover for all weather loading. The asset is nearing construction completion and presents as a corporate industrial HQ for incoming national occupier. The site is within proximity to EastLink (M3) via the Greens Road diamond interchange. 29 Bass Court is located within the south east’s premier Keysborough Key Estate, which is benefiting from significant capital and rental growth.

Colliers Industrial & Logistics Associate Director, Sam Hibbins, commented: “Office/warehouse leasing transactions in Melbourne’s South East between 3,000 sqm to 5,000 sqm have increased year-to-date 6% from 2023. Which follows on from a 11% YoY rise in 2023 and 18% rise in 2022. An approximate 35% rise in rental values in under three years has been a welcomed change by landlords who are dealing with high land rates and constructions costs.”

29 Bass Court was leased to a national occupier before practical completion for the full asking rent of $145/sqm, with minimal incentive. Associate Director Luke Lowden added that the national occupier is a leader in the automotive industry and is expanding their Melbourne South East headquarters.