The key metrics playing out across the Perth industrial market over recent years has made it near on impossible for owner occupiers to source vacant industrial facilities in the core industrial precincts. The combination of a severe shortage of land, inflationary construction pricing and limited vacant possession opportunities are all playing a major part in limiting the acquisition opportunities for the sector.
According to Andrew Fife, Cushman & Wakefield’s Senior Director Brokerage Industrial & Logistics – WA, one of the key issues which continues to play out across core markets is the scarcity of shovel ready industrial-zoned land to provide development options for owner occupiers.
“The demand for industrial properties has outpaced supply which has created a significant challenge for businesses looking to establish their presence or expand operations in Perth’s premier industrial corridor, forcing these groups to explore alternative secondary submarkets or sit on the sidelines completely”, Mr Fife said.
Mr Fife went on to say that rising construction costs have only added to the complexity, with the current average cost for premium grade facilities under 4,000sqm in gross building area currently hovering around the $1,500 per square meter range.
“The situation has created a void in the market, leaving owner occupiers without suitable options that meet their requirements, which when combined with the other drivers, only amplifies their inability to secure premium grade facilities”.
In light of this, a premium grade industrial facility located at 18 Casino Street, Welshpool is being brought to market exclusively by Andrew Fife and Ross Palframan of Cushman & Wakefield, comprising of a 3,738sqm building including a high clearance sprinklered warehousing facility and corporate offices, all positioned on a 7,317sqm parcel of prime freehold land.
Ross Palframan, Cushman & Wakefield’s Director Brokerage Industrial & Logistics – WA, said the asset offer a genuine solution for owner occupiers or even investors with tenants in hand, looking to purchase an asset that cannot be replicated in the current environment.
“The reality is that buyers should consider the irreplaceable nature of this asset both from a land and built form perspective, and we expect this to form the basis of the underwrite and value assessment of this premier asset”, Mr Palframan said.
Welshpool, Perth’s most established and premier industrial submarket has not witnessed a comparable solution for owner occupiers like 18 Casino Street in the last 5 years, and subsequently Cushman & Wakefield are expecting significant interest throughout the campaign.
The property is being sold via an Offers Invited campaign closing 4pm AWST Wednesday the 19th July 2023.