Australia, Companies, Logistics, News

$1.3m warehouse leasing in Melbourne’s west

Laverton North

Colliers’ Nick Saunders managed the off-market deal of warehouses in Melbourne’s west on behalf of ESR Australia, achieving a strong annual rental of more than $1.3 million.

Australian event company Harry the Hirer has committed to a total of 10,113 sqm of warehouse space on a five-year lease in Laverton North.

Colliers notes the deal comprises two individual properties of 3974 sqm and 6139 sqm, respectively, leased in one line, sitting on a low coverage site with a total land area of 26,000 sqm.

“The warehouses’ features, including drive-around access, a mix of on-grade and recessed loading docks and a 12.4-metre-high internal warehouse clearance, were particularly attractive to a business in the transport and logistics sector,” says Colliers’ National Director Nick Saunders.

“The transport and logistics sector in Melbourne’s west continue to drive up rents on buildings that suit this industry type, as limited properties offer low site coverage.”

The ESR-owned warehouses – previously occupied by Allied Sea Freight – are located within the tightly held Angliss Estate in Laverton North, with excellent access to the Western Ring Road and Princes Freeway, approximately 15 km west of Melbourne’s CBD.

“Melbourne’s west continues to perform exceptionally well, despite current economic conditions and rising interest rates, driven by the low vacancy rate, currently sitting at 0.74 per cent, combined with strong demand from tenants seeking larger spaces for business growth,” explains Nick.

“We’ve seen multiple examples of escalating rents within the space due to the scarcity of industrial assets offering suitable transport attributes, and with few opportunities available to the market, we’re the high competition to remain.”

For more information on Colliers, click here.

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