An investment and land banking opportunity with a new 5-year lease has been snapped up by a local investor. The large warehouse on a 4046 sq m site at 99-101 Fairbank Road sold for $2.99 million on 5.52 per cent passing yield. Cushman & Wakefield’s Robert Colaneri and Andrew O’Connell said the shed had a new 5-year lease to a tenant returning $165,000 per annum and 3 per cent fixed annual increases.
A large 1299 sq m land parcel at Lot 90 Indian Drive has transacted for $993,735. Cameron’s Al Armstrong handled the sale which fetched a benchmark price of $765 per sq m in an off-market deal to an investor.
Despite the April lockdown, Clarice Road in Melbourne’s leafy eastern suburbs has been a hive of leasing activity. Three deals, at 10, 11 and 22-24 Clarice Road, for varying sized industrial buildings have transacted. Rents ranged from $120 sq m for an older style warehouse up to $170 sqm for a newer high clearance warehouse adjacent to the Bunnings. Gorman Commercial’s Dean Alexander negotiated the deals. “This is an encouraging sign with these businesses looking to plan for expansion once restrictions are lifted,” he said.
A big jump in online sales since the COVID-19 outbreak has seen GYM Plus expand from its current 350 sq m premises in Ferntree Gully to a building more than triple the size at unit 2, 22 Furlong Street. CVA Property Consultants’ Ian Angelico, who negotiated the lease, said the new 1114 sq m industrial facility is one of two buildings and was leased for $92,000 a year on a 3+3 year term.
A 200 sq m ground floor office has been leased to a local IT company in a new mixed-use development at 123 – 127 Martin Street. The property was leased for four years at net rental of $76,000 a year in a deal negotiated by James Glen from Nichols Crowder. The per sq m rate was struck at $380.
Concrete surface equipment supplier Floorex has leased a 181 sq m warehouse and 239 sq m office/showroom at A1/2A Westall Road three months after the leasing campaign was launched. Colliers International’s Andrew Chrapot and Harry Larwill said the property was leased at $142 per sq m net for three years. Floorex has a big online business and office/showrooms across Australia and in New Zealand.
Waste and cleaning services business Citywide has leased a 1500 sq m warehouse/office on a 7-year lease. The 9 -11 Kilpa Road property, on a large 3400 sq m landholding, was leased at an annual rent of $160,000 plus outgoings in a deal negotiated by James Glen and David Garfield from Nichols Crowder.
JCC Joinery has leased a 554 sq m warehouse at 2/37-39 Rushdale Street for three years at gross face rent of $97 per sq m through Colliers International’s Harry Larwill and Andrew Chrapot. In another deal in Noble Park, a business Calardu Noble Park Pty Ltd has leased a 1658 sq m industrial site at 1/28-36 Summit Road for 13 months with options at net rent of $77 per sq m. That deal was negotiated by Mr Larwill and Sam Hibbins.
Sydney based retailer Rugs Galaxy has leased a 317 sq m showroom in the Cambridge Centre despite the COVID-19 pandemic disruption. Leedwell Property’s Tom Perkins, who brokered the deal, said bigger brands looking to expand into the Hobart are opting to locate outside of the traditional CBD. Rugs Galaxy took at 5-year lease at 66 Kennedy Drive in Cambridge. Recent transactions for similar-sized showrooms range between $150 to $200 per sq m.
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