Colliers expert Nick O'Brien, a specialist in industrial sales & leasing across Melbourne’s North, has successfully closed a significant deal in the North Melbourne Industrial & Logistics Market. This latest transaction involves the lease of Building G, located at 34-44 Raglan Street, Preston, spanning an impressive 6,236m². 

The deal marks the second time Colliers has facilitated a lease on this asset within a three year period. This  underscores the resilience of the market, with a remarkable 75% effective rental growth observed compared to the previous transaction within the respective three year time span.

The scarcity of available space in the inner-north industrial & logistics market is becoming increasingly apparent, with a vacancy rate of 0% for assets exceeding 5,000m². This trend reflects the heightened demand for industrial & logistics properties in the precinct driven largely by groups engaged in e-commerce, trade retail, and food logistics.

Owned by Growthpoint, a prominent player in the real estate investment sector, the leased asset exemplifies the appeal of properties in the North Melbourne Industrial & Logistics Market. The combination of limited vacancy and substantial rental growth in this precinct has attracted the attention of developers, prompting a surge in interest in infill acquisitions aimed at addressing the demand-supply gap.

"The constrained nature of the inner-North industrial & logistics market, coupled with sharp rental growth, underscores the need for strategic responses to meet the evolving needs of the occupier sector," commented Nick O'Brien on the significance of the deal. "Developers are increasingly focused on creating supply that aligns with the demands of key sectors such as e-commerce, trade retail, and food logistics."

The prevailing undersupply within the inner-north presents both challenges and opportunities for stakeholders in the industrial real estate sector. The heightened leasing absorption observed over the past 24 months is expected to persist, driven by factors such as lease expiries and the evolving development landscape across the inner-north.

As Melbourne's industrial & logistics landscape continues to evolve, Colliers North industrial team remain at the forefront of facilitating transformative deals that shape the region's industrial market. This latest success in securing the lease for Building G further solidifies their reputation as a trusted advisor in the North West Melbourne Industrial & Logistics Market.

Nick O'Brien is an emerging professional specialising in commercial and industrial & logistics brokerage deals in Melbourne’s North. With a track record of market leading transactions and a deep understanding of market dynamics, Nick is recognised for his strategic insights and commitment to delivering exceptional results for his clients.

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