Diversified property developer Pellicano has announced four new leases, three of which are in its industrial portfolio, signalling the sustained strength of this asset class, underpinned by increased consumer demand, growth in e-commerce activity and pent-up demand for suburban fulfilment centres.
The deals span a range of locations in the developer’s portfolio, being M1/M2 Industry Park in Dandenong South, Parkview Estate in Moorabbin, and 76 Carroll Road in Oakleigh South.
Techtronic Industries, Opal Packaging and KG Electronic – the three industrial leases – have come from sectors bolstered by consumer demand for sustainable products, as well as the surge in e-commerce driven by COVID-19.
The fourth new deal, from Pellicano’s commercial portfolio, will see Como Homes move into the final office space at M1 Industry Park’s M1 Hub, buoyed by a surge of activity during 2020 driven by government incentives in residential property: the Homebuilder grant, stamp duty discounts and tax cuts.
Pellicano managing director Renato Pellicano believes industrial property will continue to be a sought-after asset, as the rise of e-commerce underpins demand for quality spaces in accessible locations.
“ We have seen confidence continue to rise in the industrial sector so far in 2021, driven largely by the intense rise of e-commerce in 2020, as well as the flow-on effect of renewed consumer confidence in retail and hospitality.
“ We expect this to continue in the longer term, as people’s preference for online shopping solidifies, and they continue to adapt to more efficient but less personal ways of living.
“ As the appetite to be more sustainable continues to rise as a community, we expect to see more occupants in this sector seeking out larger industrial properties, which we hope to satisfy in order to facilitate growth in this globally important sector,” Renato said.
M2 Industry Park, Dandenong South | 26 – 40 Nina Link
Techtronic Industries Pty Ltd (TTI) will be moving in to a 10,930sqm office/warehouse space, signing for a seven-year term at $1.1m per annum, starting in February.
The company develops, manufactures and markets cutting-edge, emission-free cordless power tools and equipment through a variety of distribution channels globally. Brands include Milwaukee, Ryobi and Hoover.
The deal, managed by Richard Wilkinson and Gordon Code of Colliers International, secured a quality covenant in a tightly held area.
Parkview Estate, Moorabbin | 49 – 51 Sunmore Close
KG Electronic Pty Ltd, one of the country’s largest home electronics stores, will be moving into an 8,680sqm office/warehouse space, signing for a three-year term at $80/sqm, which will commence in January. Leased with zero downtime, KG Electronic identified Parkview Estate as the perfect bayside location to grow its rapidly growing e-commerce platform.
The company sells electronics, accessories and appliances direct to consumers from its online store. KG Electronic has benefited from the seismic shift towards e-commerce and online shopping, which was driven by 2020’s extended lockdowns.
The deal was managed by Gordon Code and James Stott of Colliers International, and Joel Wald of MMJ Real Estate.
76 Carroll Road, Oakleigh South
Opal Packaging Australia Pty Ltd, a renewable packaging company that is part of the Nippon Paper Group, will be moving in to a 4,679sqm facility that includes storage. The lease commenced in January.
The deal was managed by Jonathan Mercuri of Colliers International.
M1 Industry Park, Dandenong South | M1 Hub, 182 Monash Drive
Como Homes Pty Ltd is moving in to the final commercial office space at M1 Hub in February. The tenancy is 421sqm, including a ground-floor showroom. The company has signed for a five-year term for $96,000p.a.
The company, which specialises in new residential builds, joins the likes of Commonwealth Bank Business Banking Centre, Hoban Recruitment, Manpower Services, and The Global Local café, and M1 Industry Park’s M1 Hub.
The deal was managed by Gavin Dumas of Crabtrees Real Estate.
Article appeared in the Age – https://www.couriermail.com.au/subscribe/news/1/?sourceCode=CMWEB_WRE170_a&dest=https%3A%2F%2Fwww.couriermail.com.au%2Fquestnews%2Fsoutheast%2Fmore-than-2bn-worth-of-projects-from-major-developers-revitalises-woolloongabba%2Fnews-story%2Fe895af9a814d8a3c14d59fe7a959678d&memtype=anonymous&mode=premium