Rents soar: Manufacturer Central Steel finds a new home in low vacancy market
Manufacturer Central Steel has signed a lease for a 10,301 square metre industrial warehouse at a new speculative development in Somerton, in Melbourne’s north.
CBRE’s Joe Brzezek and Daniel Eramo negotiated the deal for 50-80 Stanley Drive on behalf of industrial developer and manager ESR Australia.
Central Steel is moving to a new Somerton warehouse.
Central Steel is relocating from its existing site at 149 Somerton Road as that site is being redeveloped by private equity real estate investment firm Cabot.
“The vacancy rate in the northern industrial market is about 1.1 per cent, which has been a key factor for the trend of speculative industrial development success,” Mr Brzezek said.
Rents in the area have increased 8.7 per cent since the first quarter of 2023, and 35.1 per cent in the past 12 months, he said.
Good move
A local company operating in Burns Road, Altona – and wanting to own its own property – has snapped up an opportunity to purchase in the same street.
The $5.95 million sale of 47 Burns Road was negotiated by Fitzroys’ Brent Glassford and Marco Sandrin, who generated more than 105 enquiries and multiple offers during the sales campaign.
The 2200 square metre warehouse on a 4666 sq m site has a dual-level corporate office with staff amenities, on-site parking at the front and rear, and an automated security gate. It is located near the Kororoit Creek Road and Princes Freeway interchange, and is 3 kilometres from a major freeway connector providing a gateway to Melbourne’s CBD, north and east.
Sandrin said Melbourne’s western industrial market “continues to see historically high rental growth amid a shortage of supply and elevated demand”.
Richmond auctions
Gorman Allard Shelton’s Tom Maule and Dean Alexander have auctioned 234 and 236-238 Bridge Road, Richmond, in back-to-back auctions.
234 Bridge Road sold for $1.48 million on a 2.95 per cent yield and 236-238 Bridge Road fetched $2.48 million on a yield of 3.74 per cent. Both properties are tenanted.
“Investors are coming back to Bridge Road due to the recently completed Coles traders shopping centre, as well as a number of other developments,” Maule said.
Expansion plans
A 1270 sq m office-warehouse at 1 England Street, Dandenong South, has changed hands in an off-market deal for $4.6 million.
The buyer is a south-east owner-occupier looking to expand on the 3648 sq m site. The deal was brokered by Colliers agents Sam Hibbins and Luke Lowden.
“While the depth of prospective buyers has slightly reduced in 2023, the undersupply of quality industrial facilities has ensured sales results remain strong,” Hibbins said.
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