Colliers and CBRE have transacted a brand new speculative office warehouse in Melbourne’s northern suburb of Epping for $12,000,000 million on behalf of Impact Designer Homes.

The 4,172sqm state-of-the-art facility, completed on May 2023, was initially leased to leading car engineering design specialist, Premcar on a 3-year lease and subsequently sold to a private investor at an initial yield of 5.73%, representing a building rate of $2,876/sqm.

Colliers Corey Vraca, Mitch Purcell and Nick O’Brien with CBRE agents Jake George and Joe Brzezek managed the deals, providing the new owner an annual rental income of $688,320, equivalent to $165 per sqm.

Colliers’ Corey Vraca said, “Despite some headwinds in the macro environment, the overall outlook for industrial asset class remains positive. We continue to see strong leasing uptake and steady rental growth, particularly for functional, prime-positioned assets with strong connections to majorroad arterials.”

8 Northpoint Drive, Epping, sits on a 6,266 sqm land parcel and is nestled in Melbourne’s highly demanded northern industrial pocket, presenting a strategic position for a wide range of businesses due to the immediate access to several transport linkages and proximity to Epping Plaza Shopping Centre, Northern Hospital, Mantra Hotel and rapidly growing residential catchments.

CBRE’s Jake George added, “The limited amount of available land in Melbourne’s northern industrial market is also driving the strong interest we are currently experiencing. With limited new industrial assets becoming available to market in Melbourne’s northern suburbs, the current vacancy for sub 5,000 sqm buildings remains at under 2%.”