A private owner occupier has purchased a 2,984sqm A Grade industrial office/warehouse, transacting for $9,100,000 in an off-market deal managed by Colliers National Director James Stott.

Colliers were engaged to act as buyers' agents by a local occupier to administer and uncover opportunities for purchase in the highly sought-after Dandenong South area.

"We have been engaged several times to identify opportunities in the marketplace for occupiers in Dandenong, and this particular result represents a great outcome for both purchaser and vendor who have significantly benefitted from the result," said Mr Stott.

The asset, located on 456-458 Hammond Road, Dandenong South, is nestled in one of the most tightly held and most established industrial precincts close to Melbourne's south-east corridor and major roads, just 30 kilometres from the city's CBD.

"Melbourne's south-east market stands out from other industrial markets around Melbourne given the lack of opportunity for buyers and the supply constraints that have existed over the past 24 months with a current vacancy rate extremely tight at 0.94%," said Mr Stott.

"It is creating systemic issues for a large section of the market, and a number of businesses are now exploring different strategies to try and unlock opportunities in the marketplace or maximise the output of their existing buildings.”

Brett Cater, Victorian Sales Manager at Stow Australia, added, "Over the past 18 months, we have seen dramatic rental and sales price increases in industrial property across Australia's two largest capital cities. There has been an increase in businesses seeking solutions for more efficient footprint capacities and better understanding cubic/vertical capacity to minimise tenants' committing to unnecessary additional square meterage costs."

"The Stow Robotics division has noted a significant rise in inquiry to more automated solutions, which not only look to maximise footprint density but also considerably improve stock throughput and efficiency whilst reducing additional costs to their businesses," Mr Cater concluded.