THE PROPERTY DEVELOPMENT REVIEW
undersupply of Industrial zoned land will cause problems for lessees and occupiers moving forward unless something Is done to address this at the government level. What have been the fundamental drivers of demand amongst buyers and lessees? Predominantly supply constraints have been the key driver behind demand, However, the massive growth in online retail since the beginning of Covid has resulted in a huge take-up of warehousing in Melbourne and across the country. What are your expectations for the Industrial property market over the next twelve months? Looking ahead for the next 12 months, we expect Melbourne’s Industrial property market to continue to outperform all other segments of the property market. Whilst there has been much negativity reported in the media, all the fundamentals in the industrial market remain strong. At GO Commercial Industrial we expect rents and land values in the industrial market to plateau, potentially even rise over the next 12 months given the real lack of supply, “albeit the likely
buyer profile will change from what has been a hot institutional market into now more privately driven.” Tell us about some of the most significant properties you have transacted in the past few years or are currently working on. Our involvement in the sale of 690 Western Port Hwy and 635S Hall Road in Cranbourne west was a select off-market EOI. The property was a 123-hectare industrial 1 zoned parcel of land in a location where the land of this nature was in very short supply. Having an intimate knowledge of the buyer market it was easy to identify who were the most likely participants. We believe it remains the largest industrial land sale in Melbourne’s southeast for both size and price. Having negotiated the majority of large englobo land parcels out in Melbourne’s West in recent years, from 125ha to Goodman, 88ha to LOGOS, and 69ha to Charter Hall to name a few, all within the Truganina and Tarneit areas, says there really aren’t many large, zoned opportunities left unfortunately to secure. A real push by the state government needs to take place to
unlock all the unzoned land sooner rather than later given the amount of current and future occupier demand. This has led us to look to other markets like the North where we still see great value and opportunity, recently selling a 12.7ha parcel of land at 105 Brookvale drive Craigieburn for $250 per sqm on a quick settlement. In our opinion land constraints in the West are going to see a lot of occupiers move North over the coming years. GO Commercial Industrial is currently selling via expressions of interest 410-440 Greens Road, Keysborough this is a 7.9-hectare corner site that is industrially zoned What advice would you give property investors today? With rents and land values continuing to rise there is still plenty of opportunity to secure industrial assets that still have significant upside. Look for infill sites with a short-term wale to take advantage of the rental uplift we are currently seeing, or buy land, they aren’t releasing enough to keep up with demand!
October / November 2022 – 61
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