Leased industrial assets in high demand: Realmark

The mining slowdown has resulted in a shortage of leased industrial property investment opportunities, according to Realmark Commercial.

The commercial agency has listed a Clune Street property in Bassendean, leased by AusGroup subsidiary MAS Australasia, for sale.

The 6,632 square metre property includes a 3,280sqm office/warehouse.

Realmark Commercial industrial sales and leasing associate Max Vaghella said the property had already generated significant interest.

He said a shortage of leased investment opportunities in Bassendean was underpinning the demand.

"Traditionally, commercial property investors trade assets in order to upgrade or buy into newr or larger opportunities," Mr Vaghella said.

"However, given current confidence among investors, owners are holding onto their proeprties for much longer, which has created a real shortage of good quality leased investments.

"This trend really stems from the mining sector slowdown in WA, because commercial vacancy rates are now much higher in Perth than they were several years ago.

"So when leased investment opportunities come onto the market, we're noticing really strong interest from a very early stage."

Meanwhile, transport and logistics provider Jolly & Sons has signed a lease for a 5,205sqm office warehouse in Welshpool, in a deal brokered by Colliers International.

Jolly & Sons will pay $635,000 per year for the property, which is owned by privately held firm Lysoss Investments and located on Fargo Way.

Colliers International industrial sales and leasing executive Andrew Fife said Jolly & Sons’ lease term was for four years, with options to renew for a further four years.

“Annual reviews and a bank guarantee were secured as part of the deal,” Mr Fife said.

The property is leased by MAS Australasia until 2020.

Also in the commercial property space, Vend Property is set to auction a retail property at 5 Settlers Avenue in Baldivis early next month.

The building is opposite the Stockland Baldivis Shopping Centre and is leased to First Choice Liquor under a 15-year lease.

Vend Property will auction the property on December 3.