Options to buy or lease industrial property in the sub 1500 square metre size range and located in the Sunshine/Laverton North precinct have all but dried up, which in turn has pumped up prices.
Knight Frank agent, Joel Davy, said just six months ago anyone looking for lease space in the 800 to 1500 square metre range would have a choice of as many as eight to 10 options but there are now just three left.
Deals done in Sunshine West over the last 6 months include Workers World which leased 930 square metres at 62 Endeavour Way at $68,000 per annum; Konecranes leased 1029 square metres at 284 Proximity Drive for $85,000 a year while Newmans Valve has leased 1,240 square metres at 32 Industrial Drive and Elite Glass has taken 930 square metres at 114 Endeavour Way.
Rents ranged from $72 per square metre to $82 per square metre.
Mr Davy said that with new construction at record lows occupiers have virtually no options.
He added that in line with increased demand, the prices for land in the Proximity Estate at Sunshine increased by almost 30% since 2009 with the last lots fetching more than $200 per square metre, up from $155 three years ago.
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Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank and its New York-based global partner, Newmark Knight Frank, operate from 245 offices, in 47 countries, across six continents. More than 7,067 professionals handle in excess of US$816 billion worth of commercial, agricultural and residential real estate annually, advising clients ranging from individual owners and buyers to major developers, investors and corporate tenants. For further information about the Company, please visit www.knightfrank.com