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MELBOURNE'S west is emerging as one of the most in-demand regions for industrial businesses nationally, according to CBRE.
Research from the group shows a range of businesses and organisations have committed to more than 400,000sqm of existing or newly developed industrial space in the area over the past 18 months.
It suggests Melbourne's western industrial market is experiencing strong building absorption year on year, with an average 10-12 per cent growth per annum since 2013.
"Growth has been driven by the area's positive underlying fundamentals," says Todd Grima of CBRE's Industrial and Logistics.
"(This includes) close proximity to major arterial roads which provide excellent access to the Port of Melbourne and Melbourne CBD, with substantial development projects currently underway to meet business demand."
A number of large developers have moved into the area recently including DEXUS, EMKC, Frasers, Vaughan's, Goodman and Charterhall.
In addition, the majority of committed industrial space has been by way of lease to occupiers including Target, Reject Shop, Kathmandu, Country Road, Fisher & Paykel and Global Freight.
"We are also seeing continued speculative development led by Frasers and Goodman with a combined approximately 45,000sqm currently under construction and nearing completion," says CBRE Director Tom Hayes.
"Businesses are increasingly targeting Melbourne's west to benefit from the competitive land rates in the area, with the region identified as having the most affordable industrial land, and therefore rentals, out of all industrial markets nationally."
Read more CBRE research stories:
ADELAIDE'S PROSPECTS AMID MANUFACTURING SLUMP
GREEN LANEWAYS TO UNLOCK NEW RETAIL OPPORTUNITIES
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