Three speculative warehouses in Pakenham leased before completion

The relative affordability of the Pakenham industrial market has seen three major deals signed on McGregor Rd in the past month totalling 12,380 sqm of total building area.

JLL Victoria Director, Industrial Al Armstrong said the private investor-owned buildings were all leased for an average of $107 sqm on long term leases prior to practical completion.

“The occupiers were running briefs across South East Melbourne and chose Pakenham over Dandenong and other core markets due to the lower cost base and the rapidly expanding population base,” he said.

All three buildings occupied prominent locations in Southeast Business Park.

Southeast Business Park is one the largest industrial business parks in Pakenham and has seen significant growth in the past five years.

JLL Associate Director Industrial Leasing Ivo Redmond said the deals were done with minimal incentives, and at rental levels far over initial expectations.

“There’s been strong absorption in Pakenham for speculative buildings and more engagement from occupiers prepared to move out there to take advantage of the improving infrastructure,” he said.

JLL negotiated the leases alongside Cameron Industrial’s James Roux and Max Weinzeral.