Owner occupiers snap up brand-new industrial warehouses prior to completion

Colliers and CBRE have secured the sale of three brand-new industrial assets, totalling over $12.5 million, in one of Melbourneโ€™s fastest-evolving industrial precincts, Cranbourne West.

Colliers Luke Lowden and Sam Hibbins sold the 6,272sqm parcel to Poplar Constructions in 2021 for $440/sqm. They were later exclusively appointed to sell the three industrial facilities at 14, 16 and 18 Furlong Street in conjunction with CBRE.

โ€œWe worked with Poplar Constructions to create warehouses that would fill a gap in the market, as the stock for assets of between 1,000 to 2,000sqm sizes are scarce,โ€ said Colliers Associate Director Luke Lowden.

โ€œWe received a high volume of interest for the brand-new warehouses, particularly from owner- occupiers. We managed to secure all three sales two months prior to completion at an average square metre rate of $2,622/sqm across all three properties.โ€

All three assets were purchased by owner-occupiers, who are expanding and relocating from other industrial warehouses in various Melbourne and interstate locations.

Strategically located within one of Melbourneโ€™s fastest evolving industrial precincts, Cranbourne West benefits from easy access to some of the south eastโ€™s major road networks, including

Thompson Road, Frankston Dandenong Road and the South Gippsland Highway, 40 km south east of Melbourneโ€™s CBD.

Colliers Associate Director, Sam Hibbins, said, โ€œCranbourne West is no longer a peripheral South Eastern industrial location. It is attracting strong demand from occupiers and investors due to its proximity to EastLink (M3) and being surrounded by some of Victoriaโ€™s fastest growing residential suburbs.โ€

โ€œThe Cranbourne West industrial precinct is set to quadruple in size within the next 3-5 years largely due to ESRโ€™s upcoming 79 hectare Green Link estate and Saltaโ€™s 123 hectare 690 Westernport Highway Industrial Estate. With most of these industrial developments offered for leasehold only, we expect owner-occupier demand to continue exceeding sale supply and prices to remain strong,โ€ Mr Hibbins concluded.

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