- Multiple food related leases within the past month
- Cold storage vacancy rates less than 1%
- Some Melbourne industrial real estate vacancy rates at 0.27%
Industrial real estate remains a hot sector, Centuria Industrial REIT (ASX: CIP) recently released its latest portfolio valuation, up by almost $300 million again to $2.9 billion.
Earlier in the year, the market even recorded vacancy rates as low as 0.27% in parts of Melbourne.
The Property Tribune reported that industrial remains one of the most attractive classes of investment, and in recent times that continues to be the case.
Food
Expectedly, distribution centres have seen an upswing in activity, with the supermarket players all remaining some of the biggest players in the online space.
In March, Woolworths announced it will create new distribution centres in Queensland, and Centuria signed Woolworths on for another five years at a New South Wales distribution centre in May.
The news
Savills recently announced a Morningside property was leased out for five years.
7/109 Riverside Place is a cold storage location that was in high demand, vacancy rates for quality frozen and chilled premises, according to Savills, was almost as cold as the facility – less than 1%.
“MRC Ventures, who distribute coconut based food products, has secured the space as it allowed their strong forecasted growth and to set up their new wholesale and retail ventures,”
Shaw Harrison, Director, Industrial and Logistics at Savills Australia
The property is capable of -21 degrees storage, and is being leased at $300 per square metre, amounting to $84,000 gross per year.
CBRE today announced Pinnacle Packaging, a food packaging company, signed a lease also in Melbourne, but located in the suburb of Altona.
14 Marshall Court is expecting to generate $320,000 in annual rent, the property is 6,340 square metres, and includes a 3,959 square metre warehouse.
