Dingley Bypass a boon for local industrial property

Industrial tenants are seeking suburbs around the newly opened Dingley Bypass confirming predictions that the new $156 million link road would drive local economic growth.

Savills Director Industrial, Gareth Jackson, said in the 12 months to September 160,000 square metres of leases (1000sqm +) have been recorded while sales have been more than $42 million across the Dingley, Moorabbin, Cheltenham, and Braeside industrial precincts.

"The market’s reaction to the new road both before and after its opening has been phenomenal to say the least. Enquiry since the road opened has especially been strong.

In the last six months alone nearly 100,000 square metres of industrial space has been leased and sold and much of that can be attributed to the primary business rationale that had formerly lured tenants to other areas – improved road infrastructure,’’ Mr Jackson said.

In the latest deals, brokered by Mr Jackson and Director Lynton Williams, an undisclosed tenant has leased a 12,660 square metre distribution centre at 41-51 Mills Road, Braeside while Global Trading solutions has leased 2951 square metres at 31-33 Lakewood Boulevard, Braeside.   

Other recent deals include:

• 355 Warrigal Rd Cheltenham – 1765 square metres;
• 354 Boundary Rd  Dingley– 2200 square metres; and,
• 13 Lennox Street Moorabbin – 1000 square metres.

The 6.4 kilometre, six lane, Dingley Bypass which links Warrigal Road at Moorabbin and Westall Road at Dingley Village was opened five months ahead of schedule in March, by Minister for Roads and Road Safety, Luke Donnellan, with the promise of reduced traffic delays and congestion and improved traffic flow on the road network with more direct road connections.

Mr Jackson said the Dingley corridor industrial precinct had been historically, a tightly held precinct, based on its relatively close proximity to the CBD, via the Nepean Highway, the Moorabbin Airport and affluent ‘sand belt’ suburbs.

However, over the years, tight vacancy levels and road infrastructure improvements in other locations had gradually attracted tenants away from the region, Mr Jackson said.

"I guess you could say the region temporarily fell out of favour as new industrial developments opened up farther from Melbourne along new transport routes, including EastLink, but more recently the tables have turned and the Dingley Bypass has been the catalyst,’’ Mr Jackson said.