An industrial leasing deal struck in Melbourne during COVID-19 demonstrates the ongoing tenant demand, particularly in warehousing and distribution, within Victoria's capital, Knight Frank says.

Online fulfilment and distribution business, Black Bear Fulfillment, has signed up to occupy a 2,380 square metre facility at 8 Parraweena Drive in Truganina. 

The deal, which will see the tenant pay circa $80/square metre for the space, was negotiated by Michael Satterley of Knight Frank. 

At a glance: 

• A 2380 square metres industrial facility at 8 Parraweena Drive in Truganina has been leased by Black Bear Fulfilment 
• The deal, which will see the tenant pay circa $80/sq m, was negotiated by Michael Satterley of Knight Frank 
• The transaction was negotiated in recent weeks, while the market was still feeling the effects of COVID-19. 

The Truganina property has 2100 square metres of warehouse space and 280 square metres of office space.

Features include three-phase power, NBN internet connection, dual container height roller shutter doors, huge yard, security gates and a 9.5m-plus internal clearance. 

Mr Satterley told WILLIAMS MEDIA the property received a reasonable amount of enquiry during the time it was on market, despite the challenging conditions from March to June.

"Other interested parties included a transport business, dried food goods business and other logistics and warehousing operators," he said.
 
"Ultimately, the high-clearance of the warehouse proved to be a crucial element of the property for Black Bear Fulfilment, who’s cubic capacity (and hence pallet storage capacity) was drastically increased due the 9.5m internal clearance, as opposed to many other buildings with clearances  of circa 6m.
 
"The business is settling in well and has engaged Able Storage for their racking needs, who attended the initial property inspection.

"This helped speed up the decision-making process by having them there to advise on racking plans, pallet movements and product flow."

He added that the size and features of the property were a drawcard for Black Bear Fulfilment.

“It’s situated off Palmers Road in Truganina, offering excellent connectivity to Boundary and Dohertys Road, two of Melbourne West’s main thoroughfares," he said.

“The property has very good access to freeways, including the Western Freeway via Robinsons Road and the M80 Ring Road via Boundary Road.” 

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