Off-market industrial sales picking up in Perth: Savills

Industrial property transactions are rising in Perth, going by a number of off-market deals in warehouse properties in the city’s industrial locations, according to Savills.

A recent transaction involved the off-market sale of a warehouse/office property in Kewdale for $8.5 million, brokered by James Condon and Matthew Hopkins of Savills.

The property at 172 Kewdale Rd comprises a 4,000sq m warehouse plus 660sqm of office on a 12,148sqm site.

It was purchased by an owner-occupier, with existing tenant Tytec Pty Ltd vacating mid-2017.

“After a decade of Perth’s core industrial properties being tightly held, the market is now seeing prime core properties being unlocked with owner-occupiers and investors back in the market looking for opportunities,” Condon said.

“Savills has seen recent examples of this totalling over $40 million worth of industrial properties being sold in the first quarter of 2016. The low interest rate environment being well below investment yields has seen the owner-occupiers actively looking for opportunities in Perth core industrial market.”

Savills' latest Perth Industrial research briefing for Q1 shows a total of $715 million worth of industrial property transactions in Perth in the 12 months to March 2016, up from $437 million in the previous year. The reported volume and value of Perth industrial property transactions, above $20 million, is the highest in a decade, according to Savills research.