Private investor capitalises on industrial rental growth in Melbourne’s north

New Zealand based transport business EIF International has expanded its operations in Australia with the lease of a 4,550sqm prime grade warehouse in Campbellfield.

A private investor purchased the site at 53-63 National Boulevard in 2022 which was leased at a passing rental of $370,000 pa net. The new lease with EIF International reflects a substantial 72% increase and underscores the significant rental growth over the past 24 months.

CBRE’s Joe Brzezek, Daniel Eramo, and Jake George negotiated the lease on behalf of the property owner. The property was also marketed by Rutherford Real Estate’s Bryce Williams.

“Despite anticipated future supply, there remains a shortage of industrial warehouses in specific size categories, particularly between 4,000 and 7,500sqm GLA,” said Mr. Brzezek.

The warehouse was one of the only industrial facilities available immediately for lease in Melbourne’s north where the current vacancy rate is approximately 2%.

Mr Eramo added, “Prospective occupiers are increasingly being drawn to Melbourne’s northern industrial precinct due to the significant infrastructure projects under construction such as the Somerton Intermodal Terminal and North-East Link. Both of these will increase operational efficiency in servicing wider Victoria as well as Australia’s Eastern Seaboard from Melbourne’s north.”