Colliers’ agents Gordon Code, James Stott and Daniel Telling negotiated a $31.5 million deal for a Melbourne outer east site with a national private owner-occupier who specialises in hardware products.
The agents cooperated with Cameron’s James Roux and Angus Clark on behalf of Glasscocks 25 to negotiate the sale of a rare institutional-grade freestanding office and warehouse facility in Dandenong South, which was met with significant interest.
“The purchaser was interested in the site due to the growing occupancy costs in New South Wales, which incentivised the group to focus on expanding their Victorian footprint instead of in the neighbouring state,” says Gordon Code, Colliers’ Joint Head of the Victorian Industrial Business.
“Instead of growing in New South Wales, they decided to double their base in metro Melbourne, expanding their local manufacturing, purchasing the 23,476 sqm property with a total building area of 13,154 sqm.”
The modern high clearance warehouse and corporate office facility incorporates a mix of docks and on-grade doors, a 12-metre canopy for all-weather loading, and sits among various well-known brands already located in the tightly held precinct within Dandenong South’s core Industrial and Logistics hub at 25 Glasscocks Road.
“Prime grade assets, such as 25 Glasscocks Road, are the most sought-after by tenants as the building is up to a greater environmental performance,” adds James Stott, Colliers National Director.
“Adherence to organisational ESG propositions, such as energy efficiency carbon footprint, have shifted occupational demands, and companies are seeking newer and updated assets.”
Recent data from Colliers reported the average south eastern prime grade net face rent was $100 per sqm in Q1 2021. In Q2 2023, this average has moved to $130 per sqm, representing a 30 per cent increase in just 18 months.
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