Jonathan Mercuri and Andrew Chrapot from Colliers International tells MHD readers how the Bayswater Business Precinct is helping Victoria to unlock opportunities.
Industrial property has been in the spotlight this year, as e-commerce orders boom like it’s Christmas every week, and the general public takes a much closer interest in supply chain and logistics management. A greater understanding as to how these facilities help underpin employment and economic growth in Australia has put the warehouse to the front and centre, and the opportunities are getting ready to further ignite.
This month in MHD’s Property Focus, we’re looking at the Bayswater Business Precinct (BBP), a thriving business and employment community, located 30km east of Melbourne’s CBD. Home to over 5,000 businesses and supporting more than 30,000 local jobs, this precinct is well known across Australia and internationally for its skills in heavy vehicle, fibreglass, metals, pharmaceuticals, medical technology, defence and construction. The BBP contributes over $14 billion to the local and Victorian economies.
At Colliers, we have reviewed the opportunities for this precinct and are excited for its future. With limited industrial land left to develop, a strong and diversified workforce and record infrastructure spend in play, we continue to see businesses seeking to relocate to this hub.
“The Bayswater Business Precinct is a great area: it’s got the established industrial product, ready and qualified local workforce and interest from investors both local and national. Our market data has only limited industrial facilities available, and we use this information to ensure our clients can find the right warehouse for their business,” Jonathan Mercuri, Director of Industrial at Colliers says.
A hub of innovation and excellence
The Bayswater Business Precinct has long been recognised for its tradition, technology and expertise in advanced and specialist manufacturing and local supply chains. It is well connected, with the precinct having access to the metropolitan rail network and is also serviced directly by the Victorian Principal Freight Network.
The area is home to a diversity of businesses, comprising small to medium size family businesses, to global multinationals including Siemens, GSK, Henkel and Kenworth PACCAR.
With a greater strain on global supply chains, there has been an opportunity for local manufacturing to experience fresh growth. Established precincts like the BBP have been long known for their excellence in manufacturing. Kevin Ward, a local businessman commented, “Bayswater is known for having lots of different companies and businesses. If you ever want to look up anything to get made, you can just put it into Google and add the word ‘Bayswater’ at the end and 99 times out of 100, there’s someone in Bayswater making it. If you can’t get it made in Bayswater, you can’t get it made!”
The BBP is the second largest employment precinct east of the CBD, catering to over 30,000 jobs. It is an economic generator of huge significance, particularly as the road to recovery begins in Victoria. Having precincts like the BBP firing will be imperative to capturing future economic growth, especially considering that the BBP is responsible for 35 per cent of Melbourne East’s total exports.
Tightly held, with little vacancy
The industrial component of the BBP is approximately 790 hectares. The precinct represents about 30 per cent of Melbourne East’s industrially zoned land, the BBP is a mature industrial market which sees a total of 4 per cent of the total industrial zoned land left to be developed.
Vacancy rates have continued to decline to sub 3 per cent levels for secondary buildings above 2,000sqm and sub 1.5 per cent for prime vacancies. During the midst of COVID-19, the Colliers team have continued to field a wide range of enquiries for industrial users seeking industrial space.
“We’ve been working with businesses to ensure their industrial space continues to be fit for purpose, and field enquiries from a wide range of local and national investors who seek to invest into the region. We’ve continued to complete transactions during lockdown, and have creative marketing solutions for our clients unable to travel to inspect,” Andrew Chrapot, Manager, Industrial of Colliers says.
A business community that grows together
The feel-good factor of helping other local businesses is something that the BBP is well-known for. With some businesses having been in the precinct for decades, there is a community vibe that attracts economic activity and local employment. Scott Staples, the founder of Clock’It, a manufacturer of quality cabinetry commented, “My one business may engage with 10-15 other businesses in this immediate area. It gives the client the warm and fuzzy feeling to say, your one purchase with me has fed 20 families and that’s pretty super”.
Expert advice on how to maximise the potential of your industrial property
Colliers International are proud to showcase this precinct’s rich history in business and enterprise, strong community values, economic prowess and its ability to move with the times. As trusted experts in this area, Colliers is delighted to provide our experience, knowledge and expertise to ensure the BBP and all of its stakeholders continue to thrive and create a better pathway through providing the right framework, structure and information.