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Commercial & Industrial Update

Business Parks, Commercial

Commercial & Industrial Update

After several tough years, Melbourne’s industrial market is on the way back, with good infrastructure playing a key role. Land sales are rising as developers and owner occupiers move back into the market. Banks are lending to developers again, and the smaller end of the market, inactive for 18 months, is buying before a price upswing.

Rising activity in leasing and sales of land or buildings already completed by private developers has freed capital for new rounds of construction. In September, MAB sold the final block of its $300 million Translink Business Park in Keilor Park to a private developer. The 23 blocks in Stage 5, all Business 3 zoned, sold 75% to developers and 25% to owner-occupiers, at $250sqm(6,250sqm) to $285sqm (1,400sqm).

MAB is currently marketing two industrial-based business parks – Orbis in Ravenhall and Meridian in Thomastown. Independent Tube Mills’ new corporate offices and manufacturing facility at Orbis were sold in early September, and a further three blocks have since been sold, leaving four blocks of about 1,500sqm remaining in Stage 1. Stage 2 will be releasednext year.

MAB and Pellicano Group are co-branding the park, with MAB controlling 34 hectares and Pellicano with 30 hectares. The 20 hectare Meridian Business Park at Thomastown is now 50% sold with 15 blocks sold this quarter.

This financial year over $5m of land ranging from 1,000 to 1,500sqm,has been sold at the park, equating to 95% of the small blocks available.

Jones Lang LaSalle, along with CB Richard Ellis, are marketing agents for Meridian.

To register your interest call the Commercial & Industrial team on 8681 2222.