This article is from the Australian Property Journal archive
IMPACT Designer Homes has sold its brand new speculative industrial warehouse in Melbourne’s northern suburb of Epping for $12 million, amidst ongoing strong competition in the market.
The 4,172sqm state-of-the-art facility was completed in May this year on a 6,266sqm land parcel at 8 Northpoint Drive, in Melbourne’s highly in demand northern industrial pocket.
The site was initially leased to Premcar, a leading car engineering design specialist on a three-year lease, which will provide the new owner with an annual rental income of $688,320, equivalent to $165 per sqm.
Corey Vraca, Mitch Purcell and Nick O’Brien from Colliers, alongside Jake George and Joe Brzezek from CBRE, managed the deals, with the sale to a private investor reflecting an initial yield of 5.73% and a building rate of $2,876/sqm.
“Despite some headwinds in the macro environment, the overall outlook for industrial asset class remains positive. We continue to see strong leasing uptake and steady rental growth, particularly for functional, prime-positioned assets with strong connections to major road arterials,” said Vraca.
Melbourne’s northern industrial market’s vacancy rate is under 2%, generating strong competition, with the strategic position offering immediate access to several transport linkages.
This in addition to close proximity to Epping Plaza Shopping Centre, Northern Hospital, Mantra Hotel and rapidly growing residential catchments.
“The limited amount of available land in Melbourne’s northern industrial market is also driving the strong interest we are currently experiencing,” said George.
“With limited new industrial assets becoming available to market in Melbourne’s northern suburbs, the current vacancy for sub 5,000 sqm buildings remains at under 2%.”
Over the second quarter, Melbourne’s prime industrial average rental growth was up 29.9%, shielding the market from a decline in values of 2.8% over the quarter, with prime yields moving to 4.75% – 5.00%.
