Melbourne southeast industrial facility attracts strong tenant demand

The property at 345-357 Frankston-Dandenong Road will be occupied by Tangram Group Pty Ltd, a truck/transport group growing their presence in Melbourne’s southeast, with the site to be used for truck parking and concrete crushing operations.

The leasing deal, which was struck at a rental of $740,000 per year gross, was negotiated by Adam Athorne and Josh Burne of Knight Frank on behalf of the landlord.

The property was previously occupied by Ventia, which Knight Frank assisted in their relocation to 6-8 Waterview Close in Dandenong South.

The Dandenong South property consists of a circa 1.9-hectare site with a hardstand area of 12,550sq m – a mix of concrete and crushed rock - and a 1,774sq m warehouse that includes a 6-tonne overhead crane.

Mr Athorne said the industrial facility attracted strong tenant interest during leasing campaign, with more than 100 enquiries.

“A large variety of occupiers were interested in the property, including those looking at truck storage, heavy machinery sales and leasing, soil and gardening materials groups, building materials groups and infrastructure groups.

“The low site coverage was a key attraction – in this sought-after south east location there is a lack of options with low site coverage to meet strong demand, so when opportunities become available they are highly sought after and we see strong tenant competition.

“The south east Melbourne industrial corridor, particularly around Dandenong, has seen sustained development activity over recent years, with most new builds designed to maximise building footprint, with the result that genuinely low site coverage options are becoming increasingly scarce.

“However, a significant portion of industrial occupiers in this area still have genuine operational requirements for hardstand, including transport, logistics, materials storage, vehicle and equipment parking, and container handling

“These users cannot simply substitute a high-coverage warehouse, no matter how well specified the building is.”

Mr Burne said: “This facility also appealed to tenants due to its strategic location in Melbourne’s southeast.

“The facility has around 160 metres of street frontage to Frankston Dandenong Road, providing great exposure.

“It is also conveniently located just a stone’s throw away from the area’s main arterial including Eastlink, the Dandenong Bypass, South Gippsland Highway/Freeway and the Monash Freeway.”