- Six new deals now takes the developer's industrial holdings to over 600,000 sqm
- Vacancy rate is the lowest in 15 years
- E-commence demand is fuelling growth, says Pellicano managing director
A diversified Melbourne-based property developer has announced six new deals across its industrial portfolio taking its holdings over 600,000sqm.
Despite the increased holdings, Pellicano’s vacancy rate is now 0.07% – its lowest since 2006 – which it says is a reflection of the demand for industrial land thanks to the e-commerce boom.
The latest deal encompassed close to 60,000sqm of leased space at Innovation Park in Dandenong South, relocation at Parkview Estate in Morrabbin and Baby Bunting’s facility in Dandenong South, along with three other leases across the area.
The developer said the surge in activity of the portfolio is thanks to pent-up demand for high quality industrial land, driven by the current e-commerce boom, which witnessed five years worth of growth over the past year alone, according to a report from CBRE.
The same report revealed that the vacancy rate for industrial and logistics in Melbourne’s south-east is just 1%.
The six new deals include rents totalling between $212,550 to $1.56 million per annum.
Managing Director Renato Pellicano believes that the current demand for storage, distribution, logistics and freight will see vacancy rates tighten even further.
“The diversity of clientele that has recently signed on across our industrial portfolio shows the current strength of the market,” he said.
“Victorians continue to spend big online, demand for freight and logistics is growing, and companies that were able to navigate COVID’s economic headwinds successfully are now looking for upgrades to their facilities.”
“Construction of further speculative facilities and continued investment in our industrial projects reflects the confidence we continue to have in this sector, which has always been an integral part of our business.
Renato Pellicano, Managing Director
“Victoria’s recovery from the economic impact of COVID-19 has given companies the confidence to move on their growth strategies, and as we continue to progress on the vaccine rollout we are expecting to see more of this – so demand for land will remain high, if not grow, from here,” he concluded.