Sub 1% Vacancy Rate Drives Industrial Leasing Deals in Melbourne’s West

A private development syndicate has capitalised on the low industrial vacancy rates in Melbourne’s west by leasing three adjoining Truganina office/warehouses prior to practical completion. 

Rothfield Printing, Veneziano Coffee and FST Express have leased a combined 12,519sqm of space at the 35-47 Pauljospeh Way project in deals negotiated by CBRE’s Ricardo Cappelletti, Tom Murphy and Fergus Pragnell. 

“Each tenant was previously operating in Melbourne’s city fringe market but saw the opportunity to secure brand new, highly functional warehousing at competitive rentals within a 25-minute drive of the CBD,” Mr Cappelletti said. 

The leases were negotiated at net rentals of $90/sqm-$95/sqm, delivering each occupier a 4,054sqm high clearance, clear span warehouse with corporate office space and amenities, a large handstand area and 52 car spaces. The terms range from three to five years. 

“All three properties were leased several months prior to project completion, which is testament to the extremely low vacancy rates in Melbourne’s western industrial market, which currently sit below 1%,” Mr Murphy said  

“Each property offered occupiers an expansive concrete hardstand, covering approximately 50% of the site. The warehouses are also located within the sought-after Axiom Estate, which is situated just two traffic lights from the CBD given its freeway proximity.”  

Melbourne’s western industrial market has continued to benefit from the surrounding freeway network, in addition to its proximity to the Port of Melbourne, competitive leasing rates and fast-growing residential population.

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