This article is from the Australian Property Journal archive
THE 28,000sqm former Cadbury factory is up for lease in one of Melbourne’s key industrial spots, Dandenong South.
Located at 14-28 Ordish Road, 31km south-east of the Melbourne CBD, the building is owned by CapitaLand Ascendas REIT, who acquired the building in 2015.
Stephen Adgemis, Ned Murphy and Lachlan Ferguson from JLL are managing the leasing campaign.
The former chocolate and Easter egg storage state-of-the-art facility has an asking rent of $205/sqm net or $5.78 million per annum.
The previous tenant, Mondelez who owns Cadbury, Pascall, and Oreo, has relocated to a new 43,000sqm fully automated facility in ESR Australia & New Zealand’s Palmers Logistics Estate.
The building includes temperatures of 14-17 degrees, 9.6-metre ridge height and 12.3-metre-high peak height, with complete drive around functionality.
This in addition to a heavy vehicle weighbridge; two dispatch offices north and south; super awnings on northern and southern hardstand area; 34 roller shutter doors; car park with separate entry and exit and 100 car spaces; sunken loading docks 12 on the north and ten on the south; two elevated docks with rapid doors on the south; substation on the southern boundary; dedicated truck parking on the northern side; guardhouse with boom gates, and double lane entry, plus separate exit.
Recent JLL Research revealed the South-East Melbourne industrial markets saw the strongest quarterly prime net face rental growth in 2Q24 of all tracked markets nationally. With rents up 8.8% for the quarter for a 27.6% annual lift.
“Currently, the vacancy rate stands at 1.57% across the Eastern and South-Eastern markets, however, a substantial portion, 0.83% of the total vacancy, can be attributed to non-functional, secondary grade facilities,” said Ferguson, director of logistics and industrial at JLL, Victoria.
“With supply chains normalising and consumer spending dropping, occupiers are now reassessing their future inventory levels and industrial footprints. With most reverting to a ‘just in time’ model, occupier demand has shifted from existing vacancies to future speculative or prelease facilities that will allow them to reduce their footprints and take advantage of the operational efficiencies a new build offers.”
Australia’s industrial market is set to remains severely undersupplied, even with around 2.3 million sqm of warehouses currently under construction across the country and a normalisation in demand following the pandemic boom.
With five submarkets accounting for 72% of the 2.3 million sqm of industrial facilities currently under-construction in Australia, led by Melbourne’s west, Sydney’s outer west, and Melbourne’s north.
This week Nufarm sold a shovel-ready 5.3-hectare western Melbourne industrial site for $32 million to a local developer. In Melbourne, Frasers Property Industrial also secured four leasing deals amounting to nearly 64,000 sqm in gross lettable area.