Media / News

Land Sales Continue: Tenant Demand Strong in Canning Vale

11/04/2017

Canning Vale, located 13 kilometres south of the Perth CBD, is one of Perth’s most well-located industrial estates. The area is supported by Roe Highway to the north, Ranford Road to the west and Nicholson Road to the east and is a favourite with national chains.

Last year was one of the most challenging markets Perth has experienced in many years, however in 2017 we are witnessing a renewed sense of confidence with demand for well-built, well-located industrial properties, with a number of new “open for business” signs adorning some impressive industrial facilities in the section of Canning Vale to the south of Bannister Road.

Raine & Horne Commercial have recently negotiated a number lease transactions that have seen a number of businesses make Canning Vale their new home.

Simon Matthews, Agency Associate with Raine & Horne Commercial said, “whilst the past 12 months has been relatively tough going, as a business we are pleased to have had reasonably consistent demand from established businesses looking to relocate to Canning Vale, which has provided a great deal of confidence to the developers and investors in this area.”

“It is clear that demand for property within the Canning Vale area is greatest to the south of Bannister Road given the access that Baile Road provides through this area and the new or near new buildings available for lease in this precinct.”

A couple of notable new Bannister South tenants include DDH1 Drilling, with over 40 years experience in the industry who have recently entered into a 7 year lease at 21 Baile Road; a modern 2,850sqm industrial facility, and Ironman 4×4, one of Australia’s leading manufacturers of Four Wheel Drive accessories who are in the process of moving into their brand new showroom and warehouse in the Swan Brewery Industrial Estate after signing a new six year lease.

Two local companies, one leisure based tenant, a wholesaler and a national service provider have also taken leases over a combined area of 7,500sqm in new buildings on Barrel Road and Baile Road.

In addition to larger business relocating to Canning Vale, Jumping Beans Café has opened its third Perth outlet following in the theme of their Osborne Park and Welshpool businesses, specifically aimed at servicing the industrial business and employees with fresh food and early 5am starts.

Simon Matthews added, “It’s been a common theme but the outcomes speak for themselves. Tenants have been taking advantage of the more subdued conditions to relocated to new or near-new, well-presented buildings in order to ensure they have a good platform for future growth with immediate cost savings.”

The Swan Brewery Industrial Estate

Sales in the estate have now reached 68 industrial lots over 4 stages with only 7 lots remaining on the market for sale in Stage 4.

Raine & Horne Commercial Director and selling agent Anthony Vulinovich said:

“The continued estate land sales and sales of land to significant corporates such as Sealy, Vinnies, and Sigma supports our view that the Swan Estate represents a high quality, well priced offering where owner occupiers can buy the land and develop their building to suit their exact needs and have comfort that values will rise over time given land in the general area is constrained and we are nearing the end of this estates.”

Following on from owner-occupiers taking advantage of the estate, investors have also benefited being in a new prime estate due to the buildings leasing more quickly and at better rates than other older stock. In some cases from last year, buildings were leased while other older stock still remained vacant for more than 12 months. New facilities in a new estate have a significant advantage over older stock.”

Swan Brewery Estate Developer Linc Property Director Ben Lisle said:

“We are pleased with the solid sales results within the Estate despite the generally more volatile market conditions. We are continuing to receive interest from well-established businesses looking to consolidate and/or upgrade their current facilities, who recognise the limited supply of industrial land remaining in Canning Vale.”

For further information please contact:

Simon Matthews
Agency Associate
 
Raine & Horne Commercial
334 Cambridge Street, Wembley WA 6014
T – 08 6444 7200
F – 08 9381 3705
M – 0401 676 285
E – simon.matthews@rhc.com.au