Melbourne, 18 December 2013- The Dandenong Industrial market has seen a flurry of sales and leasing activity, with several properties transacting in November.
The area is experiencing high levels of demand within the mid-tier industrial market, with properties that fall within the 2,000sqm to 6,000sqm range being snapped up quickly, in many cases before completion.
James Jorgensen, CBRE’s Manager of Industrial & Logistics Services said confidence started to return to the market in the second half of 2013, particularly following the election.
“Properties for both sale and lease in the Dandenong precinct are moving well at the moment. We are finding quality, well-priced buildings are being snapped up quickly by tenants and owner occupiers,” said Mr Jorgensen.
Recent deals in the Dandenong precinct include;
1 Conquest Way, Hallam leased to Regency Fireplaces from owners Gud Financial Services Pty Ltd for an annual rent of $175,172. The 2,112sqm warehouse and 200sqm office were leased for an initial term of seven years. James Jorgensen and Daniel Sands were the agents and Fireplace Products committed to the lease 50% of the way through construction.
Building 1, Lot 17 Darby Way leased to Leisure & Hospitality Services Pty Ltd (LHS) from owners MG Lettieri Investments Pty Ltd for an annual rent of $228,310 on a ten year term. LHS has pre-committed to the 2,686sqm building after taking Building 2 (3,885sqm) in July 2013, giving them a total building area of 6,571sqm in the Logis Industrial Estate. James Jorgensen and Hayden Bryant were the agents.
12-20 Arkwright Drive has been sold off-the-plan to SRS Electric Pty Ltd by private developer and is to be constructed by P&M Spina & Co. Pty Ltd. The brand new, state of the art office/warehouse will be the corporate headquarters for the new owners and has a total building area of 6,600sqm, including a two-level 1,072sqm office. Set on a land area of 10,052sqm, the purchase price was $6.66 million. David Aiello and James Jorgensen were the selling agents.
170-176 Williams Road, Dandenong South was also sold “off-the-plan” to a local owner occupier by Endeavour Ceilings Australia Pty Ltd.Approved plans are for an office/warehouse with total building area of 2,462sqm including 190sqm of office space.James Jorgensen and Daniel Sands negotiated the sale.
"There is no better gauge of market trends than actual deal flow which has been evident in November,” Mr Jorgensen concluded.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2012 revenue). The Company has approximately 37,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website atwww.cbre.com.au.