Login
iscover
After 11 months, the Dandenong South property became the first of its kind to be listed this year.
Soaring demand for industrial space throughout the year has resulted in vacancy rates plummeting to 0.02 per cent, marking this 7,093-square metre A-grade industrial and warehouse in Melbourne’s south-east as a rare find.
Colliers Industrial national director Gordon Code commented that “it’s the first time this year that we’ve seen an opportunity like this being brought to market in the south-east”.
He explained: “The area is experiencing a systemic undersupply of buildings with access to significant power capacity and functionality, making 32-44 Rodeo Drive attractive to multiple industry types.”
Mr Code, along with the other selling agents for the property — James Stott, Fraser Pearce, and Daniel Telling, who listed the property on behalf of Ampacet Australia — are confident the property will attract interest in excess of $19 million.
Playing into the property’s favour is its location. Dandenong South is one of the country’s most established industrial precincts in close proximity to Melbourne’s south-east corridor, major roads, all while being 30 kilometres from the city’s central business district.
Mr Code explained the precinct features “many well-known and global brands, including Coca-Cola, Reece, Visy, and Downer Group”.
Melbourne’s south-east market “stand[s] out from other industrial markets around Melbourne [due to] the lack of future supply with available land”, explained Colliers’ industrial director, Mr Stott.
“It’s been one of the most active industrial markets for leasing activity over the last three years, with record levels of demand, which have led vacancy rates to decline sharply,” he said.
Mr Stott described a consequence of this being “developers are now picking and choosing the deals they would like to chase with distribution/logistics users strongly preferred”.
He said this comes down to “the requirement for ‘generic’ facilities as opposed to specialised requirements that might have a production/manufacturing element that are more complicated and time-consuming to work through”.
Mr Stott concluded: “This is creating systemic issues for a large section of the market, including manufacturing and production users with an undersupply of buildings with access to services (power and gas) with Rodeo Drive well positioned to service these occupier types.”
Never miss a beat with 
Stay across what’s happening in the Australian commercial property market by signing up to receive industry-specific news and policy alerts, agency updates, and insights from reb.
Subscribe to reb Commercial:
Newsletter
