A standalone office/warehouse in Melbourne’s southeast has been leased by an existing neighbour following a leasing campaign that attracted strong tenant interest.

The property at 64-68 Geddes Street in Mulgrave will now be occupied by marketing agency Neo after the company decided to take on the extra space in an expansion move. The business currently occupies the site next door on Dunlop Road.

The leasing deal, which will see the tenant pay $285,000 per year plus GST and outgoings – equating to around $170 per square metre on the building size - was negotiated by Stuart Gill and Steve Salopek of Knight Frank.

64-68 Geddes Street consists a 1,688sq m warehouse/office on a 2,921sq m site.

The property has a single level office with a combination of open plan and partitioned offices, with the warehouse having excellent clearance of up to 8.3 metres, dual street facing roller doors to Geddes Street and multiple sets of amenities, with a refurbished kitchen and lunchroom.

It has 28 onsite carparks, with the ability to load and unload 40 foot containers, and is securely fenced with gates.

Mr Gill said the leasing campaign generated strong interest from a variety of occupiers, with multiple offers being received from tenants.

“The owner had no vacancy in the property, with the neighbouring tenant leasing the space as soon as the previous tenant, Camfil, moved out,” he said.

“In addition, the property saw a rental uplift of approximately 30 per cent with the new lease.

“This demonstrates the strong ongoing demand for quality industrial space in sought-after locations.”

Mr Salopek said the property was located in Melbourne’s southeast, just a few minutes away from an entry to the M1, which was a drawcard for industrial users.

“The property is located 950 metres from the Monash Freeway – the M1 - which provides the ultimate accessibility to Melbourne’s road network,” he said.

Knight Frank research shows space availability in Melbourne’s South East industrial market remains more limited than in the West. Whilst more space is coming on in 2024, the 83,665sq m expected for the year is just 11.3% of the total space dropping in Melbourne, meaning new supply will remain more limited in the South East.

The location remains popular, with take-up at 75,670sq m in Q1 2024 alone, the highest of any precinct.

Knight Frank Head of Research and Consulting Victoria Dr Tony McGough said Melbourne’s South East was expected to remain popular with industrial tenants.

“Take-up has continued to be robust, and the new supply coming on in 2024 is expected to be absorbed quickly,” he said.

“Rental growth in the precinct was 10.7% year-on-year as of Q1 2024. Further growth is expected, though this may well moderate in the slowing economy.”