This article is from the Australian Property Journal archive
A NATIONAL hardware products company has pounced at the opportunity to buy an institutional-grade freestanding office and warehouse facility in Dandenong South, spending $31.5 million to get into the tightly-held precinct.
Colliers’ Gordon Code, who sold the property with colleagues James Stott and Daniel Telling, said 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 local manufacturing footprint instead of in the neighbouring state.
Colliers sold the 23,476 sqm property at 25 Glassocks Road, which has a total building area of 13,154 sqm, on behalf of Glasscocks 25. 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 a number of well-known brands already located in the tightly held precinct.
Recent data from Colliers shows the average south eastern prime grade net face rent was $100 per sqm in the March quarter of 2021, and had jumped to $130 per sqm by the middle of 2023.
Stott said 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.
“Adherence to organisational ESG propositions, such as energy efficiency and carbon footprint, have shifted occupational demands, and companies are seeking newer and updated assets,” he said.
In June, Colliers sold an 2,984 sqm A-grade industrial warehouse and office in Dandenong South to an owner occupier for $9.1 million.
