Hot demand for Welshpool industrial infill
An industrial infill development in Welshpool with a chequered history is attracting interest from occupiers, with four-wheel drive accessory manufacturer ARB Corporation and United Fasteners moving in late last year, and a leasing campaign launched for a new-build office and warehouse at the same site.
Colliers International sales and leasing executive Justin Mabarrack said the 15,000 square metre site on the corner of Temperley Close and Pilbara Street was designed and built as a distribution centre.
The precinct includes an office and warehouse property at 126 Pilbara Street, which was infamously the subject of arson and attempted insurance fraud involving prominent developer Hossean Pourzand.
ARB will take up a 6,500sqm warehouse and 150sqm office at the site, developed by Coxon Group, while Tilt Commercial announced late last year that United Fasteners has signed a seven-year lease for a 3,280sqm showroom, office and warehouse space.
Mr Mabarrack said the property was indicative of a wider regeneration of Welshpool, with older industrial buildings being redeveloped into modern facilities.
“This modern, clear-span warehouse and distribution centre reflects the new generation of industrial facilities that are gradually replacing Welshpool’s stock of older warehouse and industrial properties,” he said.
“Because of its central location and road links to the city’s east, south and north, Welshpool remains a high-demand area for industrial distribution facilities.”
Colliers and JLL were also jointly appointed to lease a 1,630sqm office-warehouse at 6 Temperley Close, a new build that will round out development of the precinct.
The warehouse sits on a 4,643sqm plot and will be serviced by two 10-tonne cranes.
Mr Mabarrack said there was strong demand from mining and engineering groups for industrial facilities built to accommodate cranes.
“We’re expecting a number of prospective tenants to inspect the property,” he said.
“Construction starts soon and is expected to finish in the second quarter of 2020.”
JLL’s Andrew Fife said the agency had experienced increasing demand from tenants seeking to upgrade their industrial accommodation, particularly in locations such as Welshpool.
“We have already received interest from prospective tenants who we know are in the market seeing industrial product of this size and quality,” he said.
Meanwhile, Colliers announced this week it had negotiated a long-term lease in Hope Valley for AMC Drilling Optimisation, a subsidiary of ASX-listed Imdex.
AMC will consolidate its operations to the new 15,000sqm property located at 111 Investigator Drive in DevelopmentWA’s Latitude 32 industrial precinct.
“Due to the increased demand for custom-built facilities, especially from engineering, manufacturing and mining businesses, we expect to see more new developments in the Latitude 32 precinct in the next few years,” Mr Mabarrack said.