Manufacturer Central Steel has signed a lease for a 10,301 square metre industrial warehouse at a new speculative development in Somerton, in Melbourne’s north.

CBRE’s Joe Brzezek and Daniel Eramo negotiated the deal for 50-80 Stanley Drive on behalf of industrial developer and manager ESR Australia.

Central Steel is relocating from its existing site at 149 Somerton Road as that site is being redeveloped by private equity real estate investment firm Cabot.

“The vacancy rate in the northern industrial market is about 1.1 per cent, which has been a key factor for the trend of speculative industrial development success,” Mr Brzezek said.

Rents in the area have increased 8.7 per cent since the first quarter of 2023, and 35.1 per cent in the past 12 months, he said.

Good move

A local company operating in Burns Road, Altona – and wanting to own its own property – has snapped up an opportunity to purchase in the same street.

The $5.95 million sale of 47 Burns Road was negotiated by Fitzroys’ Brent Glassford and Marco Sandrin, who generated more than 105 enquiries and multiple offers during the sales campaign.

The 2200 square metre warehouse on a 4666 sq m site has a dual-level corporate office with staff amenities, on-site parking at the front and rear, and an automated security gate. It is located near the Kororoit Creek Road and Princes Freeway interchange, and is 3 kilometres from a major freeway connector providing a gateway to Melbourne’s CBD, north and east.