First lease secured at Reservoir Business Hub

ARZ Smallgoods has secured the first lease, a 4,038sqm warehouse, at ESR’s new industrial estate Reservoir Business Hub.

The 7.7ha industrial estate was purchased off-market in 2022 by developer ESR. It is the first institutional industrial development in Reservoir offering 43,465sqm of super prime, speculatively developed warehouses across eight tenancies.

CBRE’s Corey LeFavi and Joe Brzezek brokered the landmark deal.

“This lease signifies a major milestone for the Reservoir Business Hub. ARZ Smallgoods Pty Ltd will benefit from the hub’s cutting-edge facilities and strategic location, which are designed to support the growth and efficiency of their operations,” Mr LeFavi said.

The estate was designed with a variety of occupier types in mind with facilities that cater to diverse needs. Key features include 13.7m warehouse ridge heights, 10-15m cantilevered canopies, a mix of on-grade and recessed docks, and fully B-double compliant loading areas. The hub also embraces Ecologically Sustainable Development (ESD) initiatives, targeting a 5 Star Green Star design and As-Built rating.

“Reservoir Business Hub is reflective of the growing trend in Melbourne’s north of secondary industrial sites being repurposed for institutional development. Whilst speculative development is slowing down, developers are still seeing continuing rental growth with this strategy,” Mr Brzezek noted.