Colliers Melbourne South East Industrial & Logistics team has successfully secured sub-leases for two independent prime-grade offices/warehouses on behalf of  Freedom Furniture and a private corporate client.  

The sub-leases, secured by Colliers agents Sam Hibbins, Luke Lowden, and Gordon Code, are located in Keysborough and Dandenong South, offering a combined total warehouse area of  6,585sqm. These properties feature over 10-metre internal warehouse clearance, excellent loading  faces, and clear separation of allocated lettable areas. 

Colliers Industrial Associate Director Luke Lowden highlighted one of the excellent features of these sub-lease spaces. "The clear separation of the lettable area, hardstand access, and loading faces  ensure that the existing and incoming occupiers can operate their businesses with minimal  disruptions." 

With limited stock available on the market, Colliers approached relevant local occupiers regarding  these overflow warehouse opportunities and secured tenants for each warehouse on 18-month and  3-year terms, respectively. 

In the current industrial market, businesses are increasingly turning to sub-leasing as a strategic  solution to manage rising costs.

Colliers Industrial Associate Director, Sam Hibbins, commented that with net face rents increasing by 10.70% year-to-date in 2024 for warehouses sized between  3,000sqm and 5,000sqm in Melbourne's south east, and outgoings rising by approximately 30% due  to land tax hikes, sub-leasing presents a cost-effective way for businesses to occupy high-quality  industrial facilities. Sub-leasing excess space allows companies to avoid paying for unused space,  such as surplus office areas, and provides flexibility in their operational footprint. 

"Sub-leasing can offer several benefits in the current market. Businesses can occupy premium  industrial spaces without the financial burden of unused areas. Companies can adjust their  operational footprint based on current needs, making it easier to scale up or down. Sub-lessors can  offset their existing rent by generating income from unutilised warehouse space," added Colliers  Industrial National Director Gordon Code. 

17 Pacific Drive, Keysborough, is located within Keysborough's Key Industrial Estate, and 48 Goodall Close, Dandenong South, is located within the newly built Frasers' Rubix Connect Estate. 

Related Readings 

5.3ha Industrial site sold Melbourne’s West transacts for $32 Million - Colliers  | The Industrialist

Australia’s First Multi-Storey Logistics facility sold $137.6 M – Colliers | The Industrialist