The City of Brimbank located in Melbourne’s West includes suburbs such as Brooklyn, Derrimut, Sunshine and Keilor Park. The municipality has approximately 2,200 hectares of industrially zoned land making it one of Melbourne’s largest. Some 231 hectares or 10.5% of the industrial land is presently vacant. Many of the remaining parcels are larger lots, not all of which are fully serviced.
Considerable development has occurred in this area following the original construction of the Western Ring Road from 1992 until 1999 which linked the Port of Melbourne to the Western, Northern and South Eastern suburbs. The road was further extended and renamed the M80 upon completion in 2013. Whilst these areas have long been known for transport and logistics centres, other smaller end users are seeking land and buildings in this location.
Land values in early 2018 for areas of 1,500 - 2,500sqm used to command $180 - $230/sqm. Now they command $300 - $320/sqm.
There is now a real shortage of standalone buildings in the 300 – 500sqm range and smaller blocks of land suitable to build on.
Smaller office / warehouses that ranged in price from $1,100 - $1,200/sqm 12 months ago are now realizing $1,400 - $1,600/sqm, which reflects the shortage of supply.
With Melbourne expected to take the lead for industrial speculative development by volume in 2019, there will be more upward pressure on land values in the western corridor where greatest capacity for expansion exists.
If you are looking to develop, lease or sell in the Western suburbs please contact our Derrimut office directly and speak to either Francis Sbaglia or Sal Scavo.
Written by Francis Sbaglia
"Francis is particularly proficient in leasing and selling industrial premises as well as offices, showrooms and smaller retail in Melbourne’s western and northern suburbs."