An owner-occupier has snapped up a prime industrial site in Perth via an off-market deal.

The property at 15 Hodgson Way in Kewdale, in Perth’s east, was purchased by a state-wide transport and logistics business for $5.7 million plus GST from a private investor in a deal negotiated by Tom Iredell of Knight Frank.

The business is planning to move from its current location at Welshpool, which it currently rents, to the Kewdale property.

The Hodgson Way site is currently underdeveloped with a site coverage of eight per cent, occupied by a 725sq m building on a significant 9051sq m land holding.

Mr Iredell said over the second half of 2022 and into 2023 more tenants are transitioning from leasing to owner occupation due to limited leasing options and sharp rental increases.

“The WA industrial market is experiencing sustained levels of historically high tenant demand coupled with limited leasing opportunities leading to growing rents, which is in turn pushing tenants to owner occupation and placing upward pressure on land values,” he said.

“The sale price for this transaction equated to a strong rate of $629 per square metre on land value.

“This property had the added bonus of being underdeveloped, giving the buyer the opportunity to further develop the site and add value.”

Mr Iredell said the Kewdale property was situated in a prime location with main road exposure and excellent main road connectivity.

“The property benefits from frontage and exposure to Abernethy Road and is within close proximity to Leach and Tonkin Highways, allowing easy access to neighbouring industrial precincts and key infrastructure” he said.

“Perth’s eastern logistics corridor remains the most tightly-held industrial precinct in Western Australia due to its unrivalled major transport route connectivity and proximity to the Perth Airport, Kewdale Freight Terminal and Perth CBD.”

The property was listed for sale by Burgess Rawson who acted on behalf of the vendor. 

To request a sales analysis please contact the selling agent Tom Iredell of Knight Frank via the below contact details.