Colliers industrial agents Charlie Woodley and Hugh Gilbert have successfully leased Warehouse B, 1-7 Key West Place, Derrimut, on behalf of MultiGate Medical Products.

The 7,201 sqm was secured by Budget Pet Products, a family-owned online pet retailer that was drawn to the brand-new office and warehouse facility as they are expanding their operations into Melbourne.

Charlie Woodley, Associate Director at Colliers, explained, "The deal was secured just as the speculative development reached practical completion, with the lease date commencing in the coming weeks."

"Despite rising interest rates and market uncertainty, Melbourne's west continues to perform exceptionally well. Melbourne’s west vacancy currently sitting at 0.74%, combined with strong demand from tenants requiring speculative development, will ensure that the rental growth story continues."

Located in Derrimut's tightly held Park West industrial estate, just 17km from Melbourne CBD, the asset benefits from direct exposure to the Western Highway and immediate access to the Deer Park Bypass, allowing connectivity to Melbourne's wider arterial network.

“For 2024, the speculative pipeline currently sits at around 295,000 sqm of supply. However, healthy commitment levels have already been recorded, providing a window of opportunity for landowners in Melbourne to capitalise on a period of high occupier demand and limited speculative supply over the next 18 months,” added Hugh Gilbert, Colliers' Joint Head of the Victorian Industrial Business.