CBRE has announced that a private investor and a transport group have snapped up the last two lots at Frasers Property Industrial’s 42.3ha estate in Tarneit.
A land banker and freight expert Sandhu Pannu Transport purchased the final two lots, spanning 2,040sqm blocks, each for over $2 million.
Frasers’ Canvas West Estate sits at 917 Boundary Road, which offers access to the Western Ring Road and is just off Derrimut Road, which runs between the Western and Princes Freeways.
CBRE’s Ricardo Cappelletti, Fergus Pragnell, Lachlan May and Blake Grewar managed the Canvas West Estate sales campaign on behalf of Frasers Property Industrial.
Since November 2020, deals have totalled 29 including resales.
“These last two sales reflect land rates just shy of $1,000/sqm, underlining the demand for space within the Canvas West Estate,” Cappelletti said.
He said that demand has been driven by the quality of the business park, lot sizes and the booming local residential catchment area.
“We’ve fielded significant interest throughout the campaign, with hundreds of enquiries for each stage, and more than 50 parties bidding for lots,” he revealed.
Frasers purchased Canvas West Estate in late-2019 and is developing a new precinct within the rapidly growing industrial area 25km west of the Melbourne CBD.
Since its acquisition, a mix of owner occupiers and developers have bought lots spanning 1,744sqm-4,848sqm within the landholding.
Other buyers include Netherlands-based online retailer VidaXL, Incore Developments, Four Properties Group and WM Homes.
CBRE said Melbourne’s industrial vacancy rate sits at an all-time low of 1.1 per cent, with the current vacancy for ~4,000sqm spaces in Melbourne’s west 0.62 per cent.
Related: Australia’s industrial and logistics vacancy rate hits historic low
“Given the shortage of land supply in the region many seasoned developers are viewing Tarneit as a great opportunity to bolster their pipeline in a growth corridor a bit further west of the traditional core industrial suburbs such as Truganina, Derrimut, Laverton North, Sunshine West and Brooklyn,” Cappelletti said.
Australia is also facing major challenges in new supply of industrial and logistics space.
According to CBRE’s latest research, the nation’s pipeline outlook for the year is set to drop by 600,000 sqm due to construction delays caused by wet weather and rising costs stemming from material shortages and supply-chain disruptions.
Related: Supply of industrial and logistics space slide due to ongoing delays
Source. CBRE