Real estate services firm JLL has announced that ACFS Port Logistics has leased a brand new speculatively developed state-of-the-art distribution facility in Derrimut.
ACFS Port Logistics is Australia’s largest privately owned container logistics operator. The company is currently increasing its warehouse space, adding 24,010 sqm to house the groups’ rapidly expanding footprint, amid unmet demand for prime industrial and logistics assets.
JLL’s Greg Pike, Matt Crofts and Peter Blade together with CBRE’s Todd Grima brokered the deal for 97 Australis Drive, Derrimut on behalf of JK International.
“Vacancy in Melbourne’s West for assets 10,000sqm and above is currently less than 0.5 per cent, and is a significant problem for many of the growing logistics and 3PL operators,” said Todd Grima, Director – Industrial & Logistics, Australia at CBRE.
“The Derrimut property was leased upon practical completion with zero down time to ACFS Port Logistics, who are expanding their national footprint due to growth in demand from their 3PL and transport customers,” Grima said.
According to Greg Pike, National Head of Industrial Brokerage at JLL, the circumstances are similar in Sydney, with vacancy at record low levels.
“Frustration among national transport and 3PL occupiers is forcing them to come up with creative solutions and diversified east coast footprints to continue to house the significant growth of their customers,” Pike said.
“We don’t anticipate this continued imbalance of supply and demand to plateau or ease until late 2023, potentially into 2024,” he said.
Limited opportunities for occupiers to secure modern warehouse space continues to translate into face rental growth.
“Rents in Melbourne’s west are now exceeding $100/sqm (net) for quality speculatively developed assets, with limited supply for the rest of 2022. Moving into first half of 2023, this trend will likely see rents push to $110/sqm,” said Matt Crofts, Senior Director at JLL.
“Rental growth will likely remain on an upwards trajectory over the short-term until sufficient speculative supply delivery satisfies unmet demand,” Crofts said.
Source: JLL media release. Content has been edited for style and length.