Corner Stone Quarter 1, 2022

THE CORNER STONE QUARTER 1, 2022 Oakleigh

03 9567 8888 Dandenong

03 8795 4888

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WELCOME TO THE NEXT EDITION OF THE CORNER STONE! WHERE YOU WILL FIND INFORMATION ON OUR CURRENT DEVELOPMENTS, FEATURE PROPERTIES AND LATEST NEWS FROM THE CRABTREES TEAM. Crabtrees Real Estate Director Gavin Dumas recently shared his thoughts on the Victorian Commercial & Industrial Real Estate markets with Development Ready including key market trends, the impact Covid had on the local market, the most in demand assets and what we can expect to see over the next 12 months.

You can read the full article on the following pages as well as our most recent highlighted sales and leasing transactions and featured available office space within popular Parkview Estate, Moorabbin.

To discuss further results with the Crabtrees Real Estate team contact us on 9567 8888.

Market Overview - VIC

Gavin Dumas Crabtrees

Q. What are the key market trends occurring throughout 2021 in your region?

Q. How would you evaluate the impact of the past eighteen months in your local market?

A. We have seen very strong competition for industrial property and logistics assets, driven in particular by Owner Occupiers. When combined with an extremely low vacancy rates, price growth has been excellent and choice for buyers limted.

A. We have seen very strong asset value growth and increasing rental rates as demand outstrips supply; the volume of buyer inquiry has been extraordinary, in many cases 3-5 fold increases of inquiry over pre-COVID conditions. Owner Occupiers have also regularly been forced to lease premises due to the lack of sale opportunities to maintain the growth of their businesses when their original desire was to purchase and the leasing market is also enjoying strong rental growth as limited supply meets strong demand.

Q. What have been the fundamental drivers of demand amongst buyers?

A. Super low interest rates have dramatically reduced servicing costs for buyers and coupled with commentary from the RBA that these conditions will be in play for an extended period has provided buyers with confidence and has been the main driver of demand for commercial property assets and in particular industrial facilities. Added to this has been the impact of COVID which has accelerated the growth of on-line retail businesses and demand for warehousing and logistics facilities resulting in historically low vacancy rates.

Q. Reflecting on recent transactions, what has been the profile of buyers and has this shifted from previous years?

A. Whilst Private Investors have always been active participants in Melbourne’s suburban industrial market, they have been comprehensively out bid in many instances by Owner Occupiers who have been prepared to pay substantial premiums to secure premises.

Clearly there is pressure on businesses constrained by a lack of space and lack of opportunity which has resulted in Owner Occupiers being the dominant buyer for most industrial assets under $10mill. Additionally, Institutional buyers have now entered the sub $20mill market providing additional competition for high net worth private, family groups & SME’s driving yields into further contraction and unprecedented territory.

Q. What types of assets are most in-demand given the current environment?

A. Industrial Industrial Industrial – both investors and Owner Occupiers are providing demand; investors understand the industrial sector provides the security of investing in a tangible asset, being the land and bricks & mortar with a decent yield, whilst Owner Occupiers are competing for space to run and grow their enterprises. Modern facilities close to major road networks are most desirable but the lack of supply and low vacancy rates has necessitated occupiers compromise their desire for a preferred location and accept re-locating to outer suburban locations they would not have originally entertained or to take up older facilities with compromised facilities simply to allow growth for their businesses.

Q. What are your expectations for the commercial property market over the next twelve months?

A. We expect strong demand to continue from buyers but also tenants resulting in continued low vacancy rates, this in turn should underpin and limit any impact on both rental growth and price growth from any interest rate increases or other macro economic factors. With immigration/migration expected to increase throughout 2022 and into 2023, demand within the domestic economy will again be underpinned and strengthened further which again will directly impact industrial property in a positive way; a bigger population requires more dwellings, consumer goods, food and etc which all originate in one form or another via the industrial property sector.

Q. Talk us through the most significant deals you have transacted thus far in 2021.

A. Some highlight deals have been the negotiation of a purpose built office& warehouse facility for a private Owner Occupier at 70-72 National Drive Pakenham on a substantial site of 24,766 sqm with the premises totalling 14,153 sqm which would be one of the largest, if not the largest pre-commitment secured in the past 12 months in the outer suburban industrial market.

Other highlights and a note worthy sale was 1 & 2 Steele Court Mentone which was an industrial 1 zoned parcel of land of 9,084 sqm that was sold for $9,090,000 in August 2021 having been previously sold only 9 months earlier in December 2019 for $5,050,000 showing the extraordinary price growth for industrial land in the past 12-18 months.

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HIGHLIGHT SALES RESULTS MULGRAVE

49-53 ROBERTS AVENUE

CHELTENHAM 22 TAUNTON DRIVE

• High clearspan warehouse of 1,234 sqm*

• Freehold allotment of 974 sqm*

• Quality two-level office area of 200 sqm*

• Total building area of 757 sqm*

• Substantial land holding of 2,456 sqm*

• Clearspan warehouse of 607 sqm*

• Brand new sky lights installed

• Office/reception/showroom of 150 sqm*

SOLD FOR $5.05 MILLION - $3,731 per sqm*

SOLD FOR $2.005 MILLION

HEATHMONT

25-27 WATERS GROVE

MORDIALLOC 34 PERCY STREET

• Residential land holding of 3,099 sqm*

• Land area of 697 sqm*

• Opposite Heathmont Secondary College

• Building Area of 730 sqm*

• Neighborhood Residential Zone

• Ground floor office of 490 sqm*

• Over 70 enquiries

• Office/care takers residence of 240 sqm*

SOLD TO NATIONAL DEVELOPER

SOLD FOR $1.125 MILLION - $3,329 per sqm*

CLAYTON SOUTH

137, 137a & 139 WESTALL ROAD

SPRINGVALE 3 CLIVE STREET

137 Westall Road - Total area of 215 sqm*

• High clearance warehouse of 660 sqm*

SOLD FOR $760,000 - $3,535 per sqm*

• Leased to Chemwell Pty Ltd since 1998

137a Westall Road - Total area of 175 sqm*

• New 3 x 3 year lease from March 2021

SOLD FOR $670,000 - 3.25% yield

• Currently returning $55,020 pa + Outgoings

139a Westall Road - Total area of 193 sqm*

SOLD FOR $1.71 MILLION

SOLD FOR $720,000 - $3,731 per sqm*

Built on knowledge.

HIGHLIGHT LEASING RESULTS CLAYTON

57-59 NANTILLA ROAD

KILSYTH

3/124 CANTERBURY ROAD

• Ground floor office of 650 sqm*

• 1,004 sqm* high clearance warehouse

• First floor office of 650 sqm*

• Showroom space loaded with natural light

• Warehouse area of 3,786 sqm*

• 230 sqm* of mezzanine area

LEASED ON A 5-YEAR LEASE TO NATIONAL COMPANY

LEASED TO NATIONAL COMPANY FOR $148,000 PA

CLAYTON

61-63 NANTILLA ROAD

DANDENONG

1/444-446 SOUTH GIPPSLAND HWY

• Ground floor office of 650 sqm*

• 2,775 sqm* total building area

• Warehouse area of 3,304 sqm*

• 450 sqm* office/showroom

• 7 roller doors including loading dock

• 10 tonne crane capacity

LEASED ON A 5-YEAR LEASE TO FUJIAN FOOTWEAR

LEASED TO MULTI-NATIONAL COMPANY FOR $300,000 PA

MULGRAVE

17 PICKERING ROAD

OAKLEIGH

73-75 ATHERTON ROAD

• Fully partitioned offices of 200 sqm*

• Building area of 980 sqm*

• Functional warehouse of 1,400 sqm*

• Boardroom, meeting/training rooms

• Substantial side yard with secure gates

• Full break out kitchen

LEASED ON A 5-YEAR LEASE FOR $176,000 PA

• Excellent natural light LEASED TO MONASH HEALTH

crabtrees.com.au

FOR SALE

FEATURE PROPERTIES ION

D SOL

T AUC O RT

O

PRI

3/52 Smith Road, SPRINGVALE

2 Taunton Drive, CHELTENHAM

VACANT POSSESSION • Total building area of 436 sqm* • Total land area of 485 sqm* • 3 on-site car parks • 5.5 metre internal clearance • Permit for ‘Indoor recreation facility’ AUCTION Thursday 14th April at 1pm

VERSATILE WAREHOUSE • Freehold allotment of 960 sqm* • High clearance warehouse of 706 sqm* • Motorised roller door • Ample street parking • Suits a variety of uses AUCTION Wednesday 27th April at 1pm

Pana Kritikos 0418 358 700

Saul Akoka 0427 632 030

429 Burwood Highway, VERMONT SOUTH

4-8 Carey Street & 3a Griffiths Ave, BENTLEIGH EAST

ALLIED HEALTH WITH UPSIDE • Existing building of 120 sqm* • Corner allotment with upside potential • Total site of 650 sqm* • Permit for small allied health service • Executive suites/therapy rooms

MAKE A SMART INVESTMENT! • Available separately or together • 7 + 7 year leases to Capital Smart Repairs Australia Pty Ltd • Total return $432,342 pa net • Within East Village Comprehensive Development Zone

Joe Monea 0448 486 665

Chris McKenzie 0418 321 065

FOR SALE

FEATURE PROPERTIES

10 Venture Way, PAKENHAM

Shop 6/522-528 Mount Dandenong Road, KILSYTH

BEST IN CLASS! • Total Building area of 1,274 sqm* • Office 412 sqm* • Warehouse 862 sqm* • Amazing custom office fit out • 3 container height roller doors ALSO AVAILABLE FOR LEASE

OCCUPY OR INVEST • Open plan shop of 78 sqm* • Rear access • Front roller door • Plenty on-site parking • Vacant Possession DPS closing Wednesday 4th May at 4pm

Luke Pitcher 0417 055 578

Saul Akoka 0427 632 030

OR DF

$2

N

LIO

IL .5 M

SOL

1032 & 1032a North Road, BENTLEIGH EAST

9/3-5 Gilda Court, MULGRAVE

FULLY PERMITTED CORNER SITE • Substantial site of 628 sqm* • Total building area of 277 sqm* • Permit for 4 level mixed use development • Zoned Commercial 1 • Strategic development opportunity EOI closing Wednesday 13th April at 4pm

PRIME CORPORATE HQ WITH WAREHOUSE • Total building area of 534 sqm* • Two level corporate style office of 415 sqm* • High clearance warehouse of 119 sqm • Excellent natural light • Amenities on both floors; 16 car spaces Also available for Lease

Pana Kritikos 0418 358 700

Elise Betts 0407 864 319

*Approx

FOR LEASE

WorkS p a ce FE ATU R E P R O P E RTY

Crabtrees Real Estate are excited to present our feature property for this edition of the Corner Stone “Parkview Estate – Moorabbin” Owned and developed by the Pellicano Group, Parkview Estate is a premium business park located within Melbourne’s South East.

There are a terrific range of office spaces available for lease offering a wide array of amenities – gym, café, restaurant, swim centre, childcare and Moorabbin Super Centre.

If you have a particular requirement, please contact Elise Betts on 0407 864 319 for a confidential discussion.

FOR LEASE

13 CORPORATE DRIVE HEATHERTON

AREAS: 220 sqm* & 270 sqm* • • • •

Standalone office within a corporate business park Combination of partitioned offices/ meeting rooms and open plan work areas Ideally suited for organisations that are looking for high quality office accommodation Ample car parking

13 CORPORATE DRIVE HEATHERTON

AREAS: 134 sqm* & 178 sqm* • • •

Ground Level - 134 sqm* Existing fit-out - Partitioned offices / meeting rooms, kitchenette, desks and chairs First level - 178 sqm*

424 WARRIGAL ROAD MOORABBIN

AREAS: 360 sqm*, 582 sqm & 835 sqm* • • • •

Ground Level, Suite 2 - 360 sqm* First Floor, Tenancy 105 - 582 sqm* Second Floor, Tenancy 201 - 835 sqm* Ample car parking

*Approx

OUR TEAM IS SALES & LEASING CHRIS MCKENZIE

GAVIN DUMAS

Director

Director

0418 321 065

0411 878 423

0417 552 919

KERRI BEINKE

LUKE PITCHER

SAUL SAUL AKOKA AKOKA

General Manager

Manager Project Marketing

GRANT TISHLER Director

Senior Senior Executive Executive

0407 308 835

0417 055 578

0427 0427 632 632 030 030

ELISE BETTS

JOE MONEA

Senior Executive

Senior Executive

PANA KRITIKOS

0407 864 319

0448 486 665

0418 358 700

LACHLAN QUAYLE

MICHELLE GRACE

ASHLEIGH DI GREGORIO

Assistant Sales & Leasing Executive

Marketing Manager

0411 650 185

0405 150 548

Executive

Marketing Executive

Oakleigh

CHRISTINE GREY Sales Administration

CAROLINA GUTIERREZ Accounts Administration

03 9567 8888 Dandenong

03 8795 4888

YOUR TEAM PROPERTY MANAGEMENT

AMANDA HART

THOMAS WETTON

MAGGIE TARANTO

Director - Head of Property Management

Senior Property Manager

Senior Property Manager

0438 084 862

0435 876 185

0418 551 761

ANDREW WATT

NICHOLAS TODD

Senior Property Manager

Senior Property Manager

0418 159 953

0448 054 587

SERGIO SJAHLIM

EMILY MCLEAN

Property Manager

Property Manager

0429 152 557

0439 599 865

IRENA JOKSIMOVIC Assistant Property Manager

BRAIDEN CRINIS Assistant Property Manager

YITIAN CAI

MIKI MA

Trust Accounting

Trust Accounting

SHARON GOULDEN Facilities Manager

GARY CHOI Assistant Property Manager

LINH HUYNH Trust Accounting

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AT CRABTREES.COM.AU

PROJECT MARKETING Looking back at our last publication, our opening sentence was ‘Hold on for the ride!’ and how accurate that was!

Late 2021 saw the soft launch of WORKSHOP, an exciting new development in Oakleigh South comprising of 30 architecturally designed Office Warehouses featuring exposed brick facades!

There was a frenzy of reservations in the week leading up to Christmas which saw 50% of buildings reserved prior to Christmas. The project was subsequently launched to the public at the start of February with now only 5 units available for sale. Sizes now start at 155 sqm with prices starting at $875,000 + GST. Construction will be completed at the end of 2022.

The end of 2021 also saw us sell the last remaining warehouses at FAIRBANK HUB. We have also leased the final warehouse of 145 sqm at a rate of $207 per sqm which represents strong growth in the modern strata unit market.

We are excited to now offer to the market an exciting new concept in Cranbourne West called HOMEBASE. These buildings are a hybrid unit comprising of ground floor warehousing with high quality 2-bedroom apartments above. There are 11 of the buildings with prices starting from $720,000.

At the time of writing, one of these buildings has already been reserved.

Stay tuned for further updates!

Luke Pitcher Manager - Project Marketing

CONTENTS FAIRBANK HUB

4

140 Fairbank Road, Clayton South Architecturally designed warehouses plus a cafe in the heart of Clayton’s industrial precinct.

WORKSHOP

8

8-12 Natalia Avenue, Oakleigh South An exclusive boutique development comprising of only 30 office warehouses.

HOMEBASE - HOME WAREHOUSES 1 Maughan Way, Cranbourne West

10

Rare opportunity to secure fully permitted residences with high clearance warehouses.

Built on knowledge.

LOCATION MAP These business parks are strategically located throughout Melbourne’s south eastern corridor and positioned with convenient access to major arterials providing excellent access for owners, tenants and their customers.

EASTERN FREEWA Y

MELBOURNE CBD

Nunawading

M1 F REE WA Y

EASTLINK

St Kilda

Knoxfield

Oakleigh

Brighton

FAIRBANK HUB

Notting Hill

Clayton

S CE IN PR

Moorabbin

AY W EE FR

Highett

Cheltenham

M 1F RE EW AY

Mentone Dandenong

Keysborough

AN PE NE

Dandenong South

AY HW HIG Cranbourne

FORSALE LEASE FOR OR LEASE

MELBOURNES BEST SELECTION OFOF BUSINESS PARKS MELBOURNES BEST SELECTION BUSINESS PARKS

OFFICES / WAREHOUSE / RETAIL OFFICES / WAREHOUSE / RETAIL

INDUSTRIA NUNAWADING GREENLINK BUSINESS PARK FAIRBANK THOMPSONS HUB BASE CRANBOURNE WEST 23 ARCHITECTURALLY DESIGNED WAREHOUSES PLUS A CAFE IN THE HEART OF THE CLAYTON’S INDUSTRIAL PRECINCT. Sizes range from 130 sqm - 231 sqm Prices start at $499,500 + GST Key features include: • • • • • • • • •

T U DO

Roller door access Unisex disabled toilets Allocated car parking Securely fenced and gated Build your own office to your specifications Flexible Industrial 1 zoning Ideal for business, storage or investment Tax depreciation benefits Due for completion August 2021

Oakleigh 03 9567 8888

L O S

Dandenong 03 8795 4888

Luke Pitcher 0417 055 578 Chris McKenzie 0418 321 065 Joe Monea 0448 486 665

5

140 Fairbank Road, CLAYTON SOUTH Lot Number

Total (m²)

Rent (excl GST)

Sale Price (excl GST)

Lot Number

Total (m²)

Rent (excl GST)

Sale Price (excl GST)

1

176

Contact Agent

Contact Agent

13

106

SOLD

SOLD

2

217

$35,805

SOLD

14

107

SOLD

SOLD

3

159

$27,030

SOLD

15

129

SOLD

SOLD

4

159

$27,030

SOLD

5

159

$27,030

SOLD

6

159

SOLD

7

159

$27,030

8

145

SOLD

9

145

10

T U O 16

130

$22,100

SOLD

17

130

$22,100

SOLD

18

143

$24,310

SOLD

SOLD

19

143

$24,310

SOLD

SOLD

20

143

$24,310

SOLD

SOLD

SOLD

21

143

SOLD

SOLD

145

$24,650

SOLD

22

143

SOLD

SOLD

11

145

$24,650

SOLD

23

145

SOLD

SOLD

12

145

SOLD

SOLD

24

231

$41,000

SOLD

S

D L O SOLD

Note: All building and land areas quoted are approximate; prospective purchasers and tenants must make their own enquiries. All sale prices and asking rentals DO NOT include GST.

FOR SALE OR LEASE

MELBOURNES BEST SELECTION OF BUSINESS PARKS

OFFICES / WAREHOUSE

WORKSHOP AN EXCLUSIVE BOUTIQUE DEVELOPMENT COMPRISING OF ONLY 30 OFFICE WAREHOUSES Available areas: 155 sqm - 387 sqm Prices from $775,000 + GST Key features include: • • • • • •

Architect designed exposed brick facades High internal clearance First floor offices Drive through access Securely fenced & gated with CCTV Close to public transport & amenities

•

Energy efficient lighting

•

Full-height painted internal warehouse walls

Oakleigh 03 9567 8888

Dandenong 03 8795 4888

Luke Pitcher 0417 055 578 Chris McKenzie 0418 321 065

7

8-12 Natalia Avenue, OAKLEIGH SOUTH Unit

Ground (m²)

Mezzanine (m²)

Total (m²)

Sale price

Unit

Ground (m²)

Mezzanine (m²)

Total (m²)

Sale price

1

223

95

318

SOLD

16

134

41

175

SOLD

2

275

95

370

SOLD

17

124

31

155

SOLD

3

135

41

176

SOLD

18

169

41

210

SOLD

4

148

39

187

SOLD

19

124

31

155

SOLD

5

124

31

155

$775,000

20

169

41

210

SOLD

6

124

31

155

SOLD

21

169

41

210

SOLD

7

124

31

155

SOLD

22

169

41

210

SOLD

8

124

31

155

SOLD

23

124

31

155

$775,000

9

134

41

175

SOLD

24

208

41

249

SOLD

10

135

36

171

SOLD

25

124

31

55

SOLD

11

124

31

155

SOLD

26

100

100

SOLD

12

124

31

155

SOLD

27

150

44

194

SOLD

13

124

31

155

SOLD

28

139

40

179

SOLD

14

135

36

171

SOLD

29

278

95

373

SOLD

15

124

31

155

$775,000

30

294

93

387

SOLD

Note: All building and land areas quoted are approximate; prospective purchasers and tenants must make their own enquiries. All sale prices and asking rentals DO NOT include GST.

FOR SALE

MELBOURNES BEST SELECTION OF BUSINESS PARKS

HOME WAREHOUSES

HOMEBASE - HOME WAREHOUSES RARE FULLY PERMITTED RESIDENCES WITH HIGH CLEARANCE WAREHOUSES IN CRANBOURNE WEST’S MOST EXCITING NEW DEVELOPMENT

Grant Tishler 0417 552 919

Available areas: 181 sqm - 383 sqm Prices from $720,000

Pana Kritikos 0418 358 700

Key features include: • High quality residences with 7.5 metre high warehouse space • Fully fitted bathrooms and kitchens • Full precast construction with high end finishes • Container height roller door access to each space • Fully secure gated access with security • Ideal to work from home • Perfect to store your collection for stay and play get away

Oakleigh 03 9567 8888

Dandenong 03 8795 4888

Luke Pitcher 0417 055 578

7

1 Maughan Way, CRANBOURNE WEST Unit

Ground Floor Area (m²)

Warehouse Area (m²)

First Floor Residential Area (m²)

Total Area (m²)

Cars

Sale Price

1

73

83

73

229

2

$815,000

2

82

87

82

251

2

$880,000

3

84

76

84

244

3

$865,000

4

87

73

87

247

2

$865,000

5

59

63

59

181

2

$720,000

6

61

63

61

185

2

$740,000

7

61

63

61

185

2

$740,000

8

59

63

59

181

2

$720,000

9

87

73

87

247

2

$865,000

10

86

74

86

246

2

$865,000

11

127

129

127

383

3

RESERVED

Note: All building and land areas quoted are approximate; prospective purchasers and tenants must make their own enquiries. All sale prices and asking rentals DO NOT include GST.

PREVIOUS PROJECTS SNAPSHOT M-INC 105-115 Cochranes Road, Moorabbin 36 OFFICE WAREHOUSES, WAREHOUSES & CAFE’ • Sizes from 236sqm - 717sqm • SOLD OUT 2020

INDUSTRIA NUNAWADING 31-39 Norcal Road, Nunawading 71 STRATA OFFICES & OFFICE WAREHOUSES • Sizes: 91sqm – 400sqm • SOLD OUT AND FULLY LEASED 2020

AERO BUSINESS PARK 26-30 Kembla Street, Cheltenham 9 OFFICE WAREHOUSES • Sizes: 191sqm – 202sqm • FULLY LEASED 2020

THE QUADRANT 1-9/38-42 Wannan Street, Highett 9 OFFICE WAREHOUSES • Sizes from 144sqm • SOLD OUT 2020

KEYLINK 138 Indian Drive, Keysborough 8 OFFICE WAREHOUSES • Sizes: 232sqm – 407sqm • SOLD OUT 2019

For further details contact Luke Pitcher on 0417 055 578

PREVIOUS PROJECTS SNAPSHOT THOMPSONS BASE 7-11 Whitfield Boulevard, Cranbourne 12 SHOWROOM WAREHOUSES + STORAGE • Sizes: 117sqm - 325sqm • SOLD OUT 2019

PARK LANE 55-57 Whiteside Road, Clayton South 7 WAREHOUSES • Sizes from 197sqm - 226sqm • SOLD OUT 2018

INDUSTRIA KNOXFIELD 1470 Ferntree Gully Road, Knoxfield 88 OFFICE WAREHOUSES • Sizes: 132sqm – 230sqm • SOLD OUT 2018

PRECISION BUSINESS PARK 1-8 Precision Lane, Notting Hill 8 OFFICE WAREHOUSES • Sizes: 323sqm – 326sqm • SOLD OUT 2018

61 WESTMINISTER STREET, OAKLEIGH 7 FREEHOLD OFFICE WAREHOUSES • Sizes 266sqm - 665 sqm • SOLD OUT 2017

For further details contact Luke Pitcher on 0417 055 578

All areas, prices and information contained in this publication are subject to change and the information provided herein is a guide only and doesn’t represent a contract in any form.

Oakleigh

03 9567 8888 Dandenong

03 8795 4888

crabtrees.com.au