This article is from the Australian Property Journal archive
THE Port of Melbourne has launched an international leasing campaign, offering eight rare opportunities totalling 165,000 sqm of hardstand and warehouse space.
CBRE has been exclusively appointed to steer the campaign, which involves eight assets ranging in size from 5,500 sqm to 68,600 sqm, including office/warehouse space, hardstand areas and wharves.
The available port properties are situated on Coode Rd, Enterprize Rd and South Wharf (Lorimer St), within 4km of the CBD.
CBRE associate director Guy Naselli said the campaign was expected to generate significant enquiry, providing a rare opportunity to be located at the country’s largest container port.
“We expect to field interest from local, national and international companies, who can capitalise on the infrastructure, services and proximity of the port to significantly reduce business operating costs by locating at a significant point in the supply chain.
“The opportunity to secure long term leases of up to 48 years will be a key draw card. This tenure assists occupiers who require a degree of specialisation or a new building and provides the option to consider a purpose-built facility,” Naselli said.
Port of Melbourne CEO Brendan Bourke, said that the Port’s 50-year lease created certainty in terms of future planning and investment for prospective tenants.
“As private manager of the port, Port of Melbourne is aligned with the commercial interests of our tenants and customers to grow the port and deliver least cost infrastructure to ensure a sustainable competitive supply chain
“Port of Melbourne is committed to grow volumes with a focus on value creation through continued investment for future capacity,” he added.
CBRE director Christine Miller said the Port of Melbourne’s continued growth would be another driver of interest, with total trade 8.5% up for the 2017/18 financial year.
“This was being propelled by Melbourne’s strong population growth, driving broad construction activity especially in residential and firm employment – driving port activity and enhancing the requirement for occupiers to leverage fast and efficient supply chains,” Miller said.
The offering comes as rents and industrial property values continues to soar.
A recent Knight Frank report found a shortage development-ready sites and strong tenant demand has spurred a 61% jump in industrial land values over the past year.
In the 12 months to July, Knight Frank’s research shows values rose 61% to $391 per sqm (<5,000 sqm) and by 49% to $261 per sqm for medium-sized lots (1-5 ha).
Over the same period, incentives plummeted from 25% to 16.1%.
A report by LJ Hooker Commercial predicts industrial rents in Melbourne will rise by 10% over the next three years.
Meanwhile Naselli said demand for warehousing and hardstand in the inner west is particularly strong and the supply of appropriately located and available properties has reduced considerably.
“This supply and demand differential is driving considerable change in Melbourne’s western industrial sector, with a separation emerging in rent and land prices for inner western suburbs such as Altona North and Brooklyn due to the proximity to the Port of Melbourne,” he concluded.
Australian Property Journal
