Seaway Logistics has secured a 10-year lease on a 47,000 sqm site the industrial hub of Altona.
Located at 11-25 Toll Drive, the property comprises a building area of 16,144sqm, 14,000sqm warehouse and office and amenities totalling 2,144sqm.
CBRE’s Todd Grima and Tom Hayes, who negotiated the lease on behalf of Stockland, said the property’s position in Melbourne’s inner west industrial precinct, in close proximity to the Port of Melbourne, was a key factor underpinning the deal.
“This property benefits from an enviable location offering direct access to transport hubs and sea and air ports, which connect the greater Melbourne area – without the higher cost associated with outer suburbs,” Mr Grima said.
Mr Hayes added: “With a corner location offering two street frontages, extensive hardstand and full drive around access, this facility will be able to offer Seaway Logistics total flexibility in its new space.”
Rentals in the vicinity range from $70 - $80 per sqm.
The news comes after Knight Frank's May announcement that East Coast industrial vacancies rose for the first time in a year, as Melbourne drove the vacancy higher with a 6.2 per cent increase recorded in Melbourne.
Knight Frank’s Senior Director, Head of Industrial Victoria Mr Gab Pascuzzi said the impact of the upcoming closure of the automotive manufacturing and supply industry will start to come into fruition at the end of 2016.
“To date this has had minimal impact on the industrial market, however we anticipate this will put increased pressure on vacancy rates across traditional industrial locations in 2017; predominantly across lower-grade secondary stock.
“Over the past 12 months, we have seen an increase in pre-commitment activity across Melbourne. Given the shortage of prime existing options in the market combined with increased tenant demand, we anticipate prime backfill space from the likes of Target and The Reject shop coming to the market later this year will be will be absorbed quickly," Mr Pascuzzi explained.
“The south-east region recorded the highest level of leasing activity since Q1 2010, totalling 70,995 square metres. However, we are seeing pressure in the market with a lack of large existing options notably in the West, with just two vacant stock options above 20,000 square metres," he said.