New light industrial precinct to open in Essendon Fields

Essendon Fields has earmarked 30 hectares of land to develop new light industrial properties, taking advantage of the strong demand for manufacturing and logistics facilities in close proximity to the CBD, Melbourne Airport, and connected to the rest of Melbourne by the adjacent freeway network.

The first stage of the new industrial precinct was released to market by CBRE and Colliers in early December, but there has already been significant interest from prospective tenants.

The plan is for a series of 3,500-10,000 sqm industrial facilities to be developed, with construction to commence in 2023 in line with market uptake. The end value of the precinct, which will be delivered in stages over the coming years, is expected to exceed $500 million.

“The plan for stage one of this new light industrial precinct unlocks one of the last major land releases at Essendon Fields, and represents the only large-scale industrial greenfield site within 15 minutes of the CBD and the Port. It’s the best location in Melbourne,’’ said Brendan Pihan, CEO of Essendon Fields.

“Demand for industrial land is insatiable. The planning regime at Essendon Fields means we can deliver new facilities for customers faster than anyone else. And the location is superior because it’s the closest to the end customer and a talent pool of 1.1 million people within 15 minutes of the site,” he said.

Essendon Fields’ strategic location benefits from direct access to the Tullamarine Freeway, Calder Freeway, CityLink and the Western Ring Road. Via these connections 80% of Melbourne’s population can be reached within 45 minutes.

“Prospective occupiers will be drawn to Essendon Fields’s unique interface and abundance of mixed-use amenity, as well as the ability to capitalise on proximity to Melbourne’s CBD, sea and airports,” said Daniel Eramo, Director at CBRE Advisory & Transactions Services, Industrial & Logistics.

Nick O’Brien, Associate Director Industrial at Colliers also cited strong market demand for the strategic location. “We have already received significant interest from occupiers who recognise Essendon Fields as one of the most strategic and well-located land estates across Melbourne’s industrial market,” he said.

Essendon Fields is already home to several light industrial tenants including Elenium Automation and Suncorp, and recently opened a new 4,700sqm maintenance facility for Bombardier Business Jets and new training centres for Porsche and Volkswagen.

Source: Colliers