Record levels of demand have driven vacancy rates down to 0.018%

For the first time in 2022, an A-grade industrial office and warehouse in Melbourne south east has been brought to market and offered as vacant possession.

The exclusive selling agents from Colliers Gordon Code, James Stott, Fraser Pearce and Daniel Telling have listed the 7,093sqm facility on 32-44 Rodeo Drive, Dandenong South, on behalf of Ampaset Australia.

Situated within one of Australia’s most established industrial precincts, with unparalleled access and connectivity to surrounding infrastructure and amenities, the asset is set to attract interest in excess of $19 million.

Colliers Industrial National Director Gordon Code said the facility is positioned in one of the country’s most sought-after and tightly held industrial locations where the chance to acquire a facility of this magnitude is scarce.

β€œIt’s the first time this year that we’ve seen an opportunity like this being brought to market in the south east. The area is experiencing a systemic undersupply of buildings with access to significant power capacity and functionality, making 32-44 Rodeo Drive attractive to multiple industry types.

β€œThe facility sits within an established destination precinct where a-grade vacancy is at a low 0.018 per cent with many well-known domestic and global brands, including Coca-Cola, Reece, Visy and Downer Group, hold their operations,” Mr Code said.

Dandenong South is one of Australia’s most established precincts with an extensive history in manufacturing and logistics due to its proximity to Melbourne’s south east growth corridor, major arterial roads with immediate access to Eastlink (M3) via the Dandenong Bypass, just 30 kilometres from Melbourne’s CBD.

Colliers Industrial Director James Stott said, β€œWhat makes the south east market stand out from other industrial markets around Melbourne is the lack of future supply with available land. It’s been one of the most active industrial markets for leasing activity over the last three years, with record levels of demand, which have led vacancy rates to decline sharply.”

β€œAs a consequence, developers are now picking and choosing the deals they would like to chase with distribution/logistics users strongly preferred given the requirement for β€˜generic’ facilities as opposed to specialised requirements that might have a production/manufacturing element that are more complicated and time consuming to work through,” said Mr Stott.

β€œThis is creating systemic issues for a large section of the market including manufacturing and production users with an undersupply of buildings with access to services (Power & Gas) with Rodeo Drive well positioned to service these occupier types,” Mr Stott concluded.

32-44 Rodeo Drive, Dandenong South, is currently for sale by expressions of interest, closing at 4 pm, Monday, 12th December 2022.

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