Momentum builds in inner Melbourne warehouse leasing market

Commercial warehousing spaces in the Melbourne city fringe is a competitive market, according to Melbourne commercial agency Gray Johnson.

Leasing agent Rory White has just leased three older style warehouse spaces in Abbotsford, Richmond and adjacent Cremorne. 

At 18 Clarke Street in Richmond (pictured above) the ground floor of 200 square metres has been leased by UK-based Hawkeye Innovations, the sports replay and line call system company that was recently purchased by Sony for in excess of $200 million.

The lease at a commencing annual rental of $39,000.

"The proximity to Melbourne’s major sporting facilities was an important factor in the choice of this location," Rory White said. 

At 31 Cremorne Street, Cremorne some 410 square metres of warehouse space has been leased by European product retailer House of Orange Pty Ltd at a commencing annual rental of $42,000.

The warehouse space will support the tenant’s high quality retail furniture, design and giftware outlets in Armadale and Prahran.

At 1 Grosvenor Street in Abbotsford a sole building occupancy over 515 sqm has been leased by ArtCubed Pty Ltd. 

The new tenant will pay an annual rental of $57,000 on a four year plus four year option lease with 4% annual rental increases. 

The company is a leader in art curating and hanging systems.

"A city fringe location is of critical attraction to many small businesses including those seeking stockholding or warehousing space in support of inner suburban retail outlets," he noted.

Gray Johnson currently holds listings for similar city fringe space at 138 Stawell Street in Richmond with an indicative rental of $28,000 for 121 sqm, at 35 Dover Street Cremorne for 255 sqm at a rental of $52,000 which will be available in January and at 121 Dover Street Cremorne with 265 sqm currently vacant at a $66,500 annual rental.