Colliers International sees spike in demand for quality industrial sites in prime location
Local developers are driving a landslide of sales at Frasers Property’s The Key industrial estate in Melbourne’s south-east.
Colliers International’s Justin Fried and Gordon Code have sold 49 lots in Stages 4 and 5 at Frasers Property’s The Key industrial estate in Keysborough in the last nine months, with 95% sold prior to the delivery of titles.
The sales totalled in excess of $30 million and represented more than 100,000sqm in combined floorspace. Individual lots sold ranged in size from around 1000sqm to 2.3ha.
“This is not your average land release,” Mr Fried said. “The Key Industrial Park is an evolution of the south-eastern industrial market and is one of the first releases of smaller lots for the area, with land from 1,000sqm.
“This is one of Melbourne’s best-positioned industrial estates, delivered by one of Australia’s most reputable developers, Frasers Property. Frasers Property has a reputation of providing and delivering outstanding industrial estates and business parks throughout Australia.
“Stages 1 to 3 have already been successfully sold out and currently have a range of development completed and under construction by local developers and Frasers Property. Businesses are flocking to establish themselves alongside a collection of quality occupiers, including Rinnai, Symbion, Early Settler Furniture, BIC, Tyres 4 U, Trimas, Victoria Station and Romak Hardware."
Mr Code said of the 49 lots sold in Stages 4 and 5 over the last nine months, 48 had been sold to developers.
While rates for lots within Stage 3 sat around at $305/sqm, Stages 4 and 5 had nudged upwards to around $320/sqm. Mr Code said the increase in values had been driven by strong demand and a lack of supply in the area.
“Buyers have been predominantly local developers, attracted to the prime location next to Eastlink,” he said “Demand for access has been a key to these successful sales.
The desirability and demand for industrial land close to the Greens Road-EastLink exchange has been unprecedented over the last couple of years, and both agencies expect the trend to continue.
“As Eastlink and Peninsula Link reduce travel times and open up workforce options, a real alternative has been created for businesses currently located across the Clayton, Mulgrave, Scoresby and Bayswater band,” Mr Code said.
“Supported by a premium layout and amenity, The Key represents an outstanding opportunity for business and investors to profit from this growing demand."
The Key Industrial Estate is serviced by well-located retail amenity, with Parkmore Shopping Centre a short drive away, and offers wide roadways and a range of small lot sizes not seen in the south-east market for some time.
Pre-lease activity has included 21,500sqm to Astral Pools in the development’s largest leasing deal to date, along with 10,000sqm to Dana.