OSBORNE Park’s traditional manufacturing tenants are being lured out of the suburb by Malaga’s inexpensive and easily attainable land.
Tenants such as Neverfail Spring-Water are relocating to specially built and designed warehouse facilities in Malaga.
Land values in Osborne Park have increased by more than 50 per cent in the past five years. Current Osborne Park land values are more than $400 per square metre. In comparison, land in Malaga can be purchased for $90 to $120/sq m.
Driving the growth in Osborne Park is the area’s changing land use, with the area changing from a manufacturing and warehouse facility location to being a predominantly retail/showroom precinct.
Colliers International commercial and industrial sales and leasing consultant Terry Menage said traditional manufacturing tenants were being lured out of the suburb by developers who could offer brand new, specially designed and constructed buildings for significantly less rent.
Mr Menage said manufacturing tenants could move into these new buildings in Malaga and still save around 30 per cent off their bottom line.
“Malaga has arguably easier access than Osborne Park in industrial terms. It is closer to the freight area, the airport and the Mitchell Freeway,” he said.
“There are big chunks of land available and the land is cheap.”
Neverfail Spring-Water State manager Alan Johanson said the decision to move the water company from Osborne Park had been prompted by the need for extra production space and affordable tracts of land.
Mr Johanson said affordable tracts of land within Osborne Park were simply not available.
“Malaga is the best place for us in as far as size and the dollars we wanted to pay,” he said.
The entire Neverfail operation will be relocated into its new premises at the end of the month.
Malaga has also attracted a bulky goods retail/showroom development.
Developed by Station Square Pty Ltd, Showroom City is aimed at showroom users and bulky goods retailers looking for appropriately sized premises in Malaga.
Station Square representative Mark Fazzari said well-located redevelopment sites were hard to find in Malaga.
He said because Malaga was one of the fastest growing commercial and industrial suburbs in Perth, the company could not pass up the opportunity to cater for showroom users and bulky goods retailers, markets previously not provided for in this suburb.
“We foresee a fast growing market in this area, fuelled by high traffic exposure and lower rental values, as well as a growing commercial and surrounding residential population,” Mr Fazzari said
Joint sales and leasing agents, Burgess Rawson’s Daniel Sanzone and Colliers International’s Anthony Vulinovich said there were few future redevelopment sites left in Malaga for retail/showroom development.
Mr Sanzone said the level of enquiry on both a local and national basis had been strong.
“Showroom City offers showroom users and bulky goods retailers a rare opportunity to secure their business future in this vibrant location at affordable rates, servicing both residential and commercial customers,” he said.
The showroom is due for completion in February/March 2004, with pre-committed tenants including WA Carpet Supermarket.
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