Key sales in Port Melbourne and North Melbourne and an above-market-average lease in Richmond highlight strong end to Q1 for Colliers International’s Melbourne CBD Industrial team
A recent surge in sales and leases of metro industrial assets has highlighted the strength of the market, with Colliers International racing to conclude a series of deals prior to the end of Q1.
Industrial executive Lachlan Dornauf recently closed the sales of 101 Salmon Street, Port Melbourne, 56-92 Langford Street, North Melbourne, and 3/473 Williamstown Road, Port Melbourne, as well as the lease of 8-10 River Street, Richmond.
An owner-occupier purchased the 3,362sqm development site at 101 Salmon Street, which currently has a 12-level residential redevelopment permit in place, soon to be amended into a 12-level commercial development.
“Fishermans Bend in Port Melbourne is currently undergoing Australia’s largest urban renewal process, with an emphasis on commercial and residential development at the forefront of the discussion,” Mr Dornauf said.
“The development at 101 Salmon Street offers the buyer an opportunity to occupy a proportion of the property and reap the benefits of capital growth into the future.”
Colliers International sold 56-92 Langford Street, North Melbourne, for $8.25million after the 3,358sqm property spent eight months listed with a competitor agency.
“The property sold to a private buyer, one of our clients, for a land record rate,” Mr Dornauf said. “They intend to occupy the site and expect to benefit from significant capital growth in the mid-term future.”
Mr Dornauf successfully ran an off-market tender process for 3/473 Williamstown Road, Port Melbourne, on behalf of APG Global Pty Ltd, which achieved an undisclosed record result for strata assets in the area.
“APG Global has now relocated its business to unit 3 at 344 Lorimer Street, also in Port Melbourne, via a Colliers International leasing campaign,” Mr Dornauf said.
In another market-leading lease transaction, Mr Dornauf negotiated an annual net rental rate of $300,000 with Roy Morgan Research for 8-10 River Street, Richmond. This was a 15 per cent increase on the original asking rate of $260,000 per annum.
“Richmond’s industrial precinct has begun the transformation from light industrial to commercial use,” Mr Dornauf said.
“This is exemplified by 8-10 River Street, a beautifully presented red brick building that offers the tenant a ‘funky’ office space to reposition their business. Properties of this elk are in high demand, as demonstrated by the tenant’s five-year term with options, plus five per cent annual increases.”