Upcoming infrastructure projects in Melbourne's west have spurred a series of industrial leasing transactions in the area across the past month, CBRE reports.

In the largest deal, World Wide Logistics signed a new lease on a 5,800sqm property at 371-383 Francis Street, Yarraville. 

The rental was $510,000 per annum. 

Another transaction involved the leasing of a 2,241sqm property at 106 Boundary Road in Sunshine West to Vortex Group, which will occupy the property for a term of five years at a rental of $180,000 per annum. 

82 Drake Boulevard, Altona. Source: CBRE  

CBRE Industrial and Logistics Senior Negotiator Fergus Pragnell said the deals highlighted strong demand for facilities that offered truck traffic and container loading areas, with all properties offering low site coverage. 

“While Australia’s strengthening e-commerce sector is stimulating industrial development, there has been a large focus on providing sophisticated facilities that ignore the importance of truck traffic and container loading areas,” he said.

Source: CBRE

“With more industries becoming reliant on road freight, there could be a potential over-supply of buildings that offer fantastic warehousing capabilities, but lack support for truck and container movements.

"This is subsequently driving increasing demand for ‘low site coverage’ industrial properties, which offer a favourable ratio of yard and hardstand.”

CBRE’s Ricardo Cappelletti said the recent leasing activity reflected opportunistic activity in the market. 

“There has been a significant increase in leasing enquiry in recent months. Many occupiers see the current market as an opportunity to upsize their warehouse while there is so much caution in the economy,” he said. 

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