The Industrial property sector of the Melbourne market performed strongly in 2017 but what about the coming year? Herron Todd White (HTW) are Australia’s leading property experts and their Month in Review Report published this week is quite revealing:
- New industrial stock will come onto the market this year in Clyde, Packenham, Carrum Downs, Truganina, Derrimut and Epping
- Demand for small scale industrial units continues to grow, especially for tradies and retirees
- Increased demand for large scale warehousing and distribution facilities is expected
- Woolworths new Distribution Centre in Dandenong South, the Merrifield Business Park in Mickleham and the Bund Business Park in Port Melbourne are all due for completion later this year
- Rentals are expected to remain stable with prime stock earning $70-$90 per sqm and secondary rates $50-$70 per sqm
- HTW remain cautious about oversupply and tenant demand in the South, South-East and Western suburbs of Melbourne
- Areas of continued demand include the Melbourne Airport precinct, larger warehouse/distribution centres in the South-East and greenfield sites in Keysborough, Dandenong South, Lynbrook and Cranbourne West.