This article is from the Australian Property Journal archive
E-COMMERCE giant Amazon has recommitted to its first Australian distribution centre, renewing its lease with Pellicano.
Amazon signing on to another five-years at its 24,387sqm site at National Drive, M2 Industry Park comes as diversified developer Pellicano secured six further industrial clients across south-east Victoria.
The deals span a total of 66,025sqm and total year one rental of circa $6.5 million, bringing the group’s total industrial holdings to circa 650,000sqm.
This is anticipated to grow to 690,00sqm upon the completion of four speculative projects under construction, representing 55$ of Pellicano’s portfolio.
“ Across the industry we’re seeing vacancy rates continue to fall – backed by CBRE’s recent figures and I think we’ll see the importance of strong relationships grow even further, as companies seek out new facilities from developers they know they can trust,” said Renato Pellicano, managing director at Pellicano.
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With terms ranging from 30 months to 10 years, the company’s low industrial vacancy rate currently sits at 0.51%.
“With growing importance on transport and logistics, e-commerce and storage, and lower vacancy, we also expect to see longer lease terms throughout the industry,” said Pellicano.
Beyond Amazon, the deals include Bulk Group signing on to a 10-year lease for a 12,190sqm speculative facility 147 Bayliss Road at M2 Industry Park; Storefast Pty Ltd on a seven-year lease for a 8,624sqm speculative facility at 59 Vision Street; Etex Australia on a five-year pre-lease for a 4,311sqm facility due for completion in Q4 2022; Johnson Health Tech Australia to a ten-year pre-lease for a 4,407sqm facility at Vision Street, Innovation Park due for completion in Q2 2023; Woodhouse Timber to a five-year lease for a 5,769sqm facility at 165 Bayliss Road at M2 Industry Park; and Banter Toys to a two year and six month lease at 2 – 10 Nina Link at M2 Industry Park.
“We have a strong network of operators, clients and agents, and it’s allowed us to work closely with each individual company to ensure a collaborative outcome that benefits all parties, whether it’s customisations, additions, flexible terms, or anything else they might need – this has underpinned our lease retention rate; 95 percent of our clients re-sign or extend in our facilities,” added Pellicano.
“We work hard to foster long-term relationships, which has allowed us to maintain a strong renewal rate –this also speaks to our ability to tailor-make facilities, build to occupier’s exact requirements, and build our assets with the future in mind.
Pellicano recently commenced delivery of four further speculative facilities including a 16,500sqm facility at Innovation Park, a 3,938sqm facility at M1 Industry Park and two facilities totalling 19,133sqm at M2 Industry Park.
These four new speculative facilities are due for a mid-2023 completion.
