Increasing tenant demand for industrial property in Melbourne's east: Chart of the week
Demand for industrial space is rising in Melbourne' east, according to property advisors Herron Todd White.
Melbourne's east comprises the industrial markets of Mount Waverley, Clayton, Croydon, Bayswater, Scoresby and Rowville.
Yields in the east range from 7.75% to 8.5% for prime industrial space and from 9% to 10% for secondary space.
Demand for space is static in other markets.
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Recent industrial sales in Melbourne's East include a factory and office building known as Unit 9 at 28 Ricketts Road, Mount Waverley sold privately by Crabtrees Real Estate for $1,005,000.
Sold with vacant possession the total building area measured 1006 square metres inclusive of 372 square metres of offices and a 688 square metres of factory space.
Overall, Herron Todd White reports that Melbourne is in a strong position to compete for occupiers of industrial property,
This is due to Melbourne's "long-term supply of developable industrial land available in an affordable price bracket."