Large-scale industrial sites in Melbourne’s southern and outer-eastern suburbs are fetching record prices, according to Colliers International.
Colliers said they have experienced unprecedented demand from developers, land-bankers and owner-occupiers wanting to remain in or move to the Monash precinct.
Industrial agents Justin Fried and Jonathan Mercuri have welcomed more than $60 million in assets to market in recent months, saying enquiry was “through the roof”.
“Developers are looking to landbank sites for higher or better use, while occupiers are trying to enter or stay in the market, with the view to own, rather than lease, their factory assets,” Fried said.
Fried and Mercuri have just transacted a food-manufacturing facility at 4-8 Ricketts Road, Mount Waverley, receiving 10 offers from a pool of local and interstate developers, land-bankers and owner- occupiers.
40-48 Howleys Road Notting Hill.
The deal follows Colliers International’s sales of 1513 Centre Road, Clayton, and 17-21 Hardener Road, Mount Waverley, for a total of more than $30 million.
Meanwhile, a major distribution centre at 40-48 Howleys Road, Notting Hill, is on the market via expressions of interest and expected to garner more than $12 million, and expressions of interest have closed for a high-clearance office/warehouse at 80-84 Peters Avenue, with a sale expected within the next few weeks.
80-84 Peters Avenue Mulgrave.
Fried said the Monash precinct had experienced “a real lack of industrial stock historically”, due to its popularity and long-term private ownership creating tightly held estates.
“For those seeking sites more than 5,000 square metres, there were simply no options in recent years,” he said.
“With such strong demand at present and an increasing buyer demographic wanting to take advantage of the business opportunities within the Monash Employment Cluster, we’re encouraging owner-occupiers to offload their assets and capitalise on the premium prices being achieved.”