Companies sign industrial leasing deals in Melbourne’s west: CBRE

CBRE Australia has announced that a private development syndicate has leased three adjoining Truganina office/warehouses prior to practical completion.

Companies Rothfield Printing, Veneziano Coffee and FST Express have leased a combined 12,519sqm of space at the 35-47 Pauljospeh Way project in deals negotiated by CBRE’s Ricardo Cappelletti, Tom Murphy and Fergus Pragnell.

According to CBRE, the move capitalises on the low industrial vacancy rates in Melbourne’s west.

“Each tenant was previously operating in Melbourne’s city fringe market but saw the opportunity to secure brand new, highly functional warehousing at competitive rentals within a 25-minute drive of the CBD,” Cappelletti said.

The leases were negotiated at net rentals of $90/sqm-$95/sqm, delivering each occupier a 4,054sqm high clearance, clear span warehouse with corporate office space and amenities, a large handstand area and 52 car spaces.

The terms range from three to five years.

“All three properties were leased several months prior to project completion, which is testament to the extremely low vacancy rates in Melbourne’s western industrial market, which currently sit below 1%,” Murphy said

“Each property offered occupiers an expansive concrete hardstand, covering approximately 50% of the site. The warehouses are also located within the sought-after Axiom Estate, which is situated just two traffic lights from the CBD given its freeway proximity,” he said.

CBRE said that Melbourne’s western industrial market has continued to benefit from the surrounding freeway network, in addition to its proximity to the Port of Melbourne, competitive leasing rates and fast-growing residential population.

Back in December 2021, CBRE revealed in its Australia Industrial & Logistics Vacancy 2H21 report that the total industrial and logistics vacancy rate across Australia’s five major cities has dropped to a historic low of 1.3 per cent.

Since the second half of 2019 (pre-pandemic), the national vacancy rate has been trending down, from 6.3% in 2H19 to 1.3% in 2H21, demonstrating the relatively strong occupier growth and activity within this sector.

Source: CBRE

Related: Australia’s industrial and logistics vacancy rate hits historic low