Melbourne, 25 September 2014- Strong demand for real estate in the western Melbourne industrial market has seen CBRE finalise seven new deals in six weeks.
The recently leased spaces are located across the west of the city, in suburbs such as Sunshine North, West Footscray and Laverton North. The seven deals represent approximately 17,500sqm of space leased in six weeks, with rates varying from $35psqm - $60psqm.
Rocole Engineering has committed to a five-year lease on a 1,800sqm workshop at Tenancy 1, 2 Tube St Sunshine North, for $100,000 net rent per year - more than double the size of its previous Port Melbourne site.
Arkit, a manufacturer of modular homes, has also made the move to 2 Tube St, Sunshine North, at Tenancy 6, to double its facilities. Arkit has signed a three-year lease on the 2,321sqm workshop/warehouse, for $140,000 net annual rent.
Other moves include Supercheap Storage and Tipper Tarps Australia, who both have premises in east Melbourne and decided to expand their businesses to the west with new leases. The companies have retained their head offices in the east, and used the move to increase their storage and operation facilities.
Supercheap Storage has leased 47a/400 Somerville Rd, West Footscray, a 2,000sqm site for two years, with an annual net rent of $70,000. Tipper Tarps has taken out a four- year lease on 1,000sqm at 22-24 Fitzgerald Rd, Laverton North, for $70,000.
CBRE’s Todd Grima, Senior Manager, said; “We are seeing good absorption of secondary stock which had previously been sitting on the market for long periods of time. The enquiry levels for the industrial market have also increased recently. These leases indicate positive future prospects for landlords in the months leading up to Christmas.”
He added: “The substantial interest in industrial property demonstrates the strong demand for functional sites at budget rentals, and west Melbourne offers this for tenants.”
Other recent industrial leases include:
1. Multiple Industry Solutions signed a two-year lease at 44a, 400 Sommerville Road, West Footscray, a 2,000sqm building, for $70,000 net annual rent
2. WW Logistics signed a five-year lease for Tenancy 2, 2 Tube Street, Sunshine North, a 5,000sqm site, for $247,500 net annual rent
3. Universal Logistics Solutions signed a two-year lease on a warehouse in Pipe Road, Laverton North, a 3,500sqm site, for $166,250 net annual rent
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2013 revenue). The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 350 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website atwww.cbre.com.au.