Keysborough’s major industrial estate, The Key, continues to be the location of choice for tenants in the south east Melbourne market – as recently highlighted by the completion of three leasing transactions by CBRE.
A 7,357sqm facility (Warehouse B) at Naxos Way, Keysborough, has leased for $90 per sqm to G&H Cabinets. The company has taken a five-year term over the site, with CBRE’s James Jorgensen and David Aiello negotiating the deal on behalf of Frasers Property.
The second Keysborough transaction handled by CBRE, in conjunction with Colliers International, was the lease of an 8,745sqm, state of the art warehouse to IHS Global Alliance. IHS Global Alliance has secured a five-year lease term at 93-103 Pacific Drive property for a net face rent of $90 per sqm.
“The tenant had outgrown its previous facility and was seeking a larger site to take on new work. While there were several suitable options, the tenant was drawn to the property for its quality features, corporate appeal and its access to the EastLink road network,” Mr Jorgensen said.
Nearby, Wacker Neuson also secured a 3,933sqm warehouse at 142-148 Atlantic Drive after selling its former Australian headquarters in Dandenong South. CBRE’s James Jorgensen and Ned Murphy negotiated the six-year lease term on behalf of a private landlord for a net face rent of $90 per sqm.
Mr Jorgensen noted the emerging ‘last mile delivery’ phenomenon - whereby speed of delivery to consumers is becoming more critical - means well positioned facilities with great freeway access, in precincts such as Keysborough, are becoming so important to tenants that rental rates are a secondary consideration in many instances.
“Interest in each property was underpinned by the major road networks, including the Peninsula Link, East Link, Dandenong Bypass (Westall Rd extension), Dingley Bypass and the M1, that converge on the business park. These networks make the location highly desirable when considering access to both blue and white-collar employment zones, as well as easy freeway access to service their customers.”
“Supply in Keysborough is fast diminishing, which is driving interest in the area to unprecedented levels and leaving few chances left for tenants to gain a foothold in this area. Frasers Property is therefore well positioned to launch its final speculative development at The Key Estate - comprising two sites of 11,624sqm and 9,178sqm.”
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CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.