Prime industrial land at a premium

INDUSTRIAL companies will continue to vie for a patch of WA’s premier industrial estates for years to come, despite higher land prices and limited availability.

Canning Vale and the Kewdale-Welshpool area are Perth’s most sought after industrial addresses, with excellent planning and transport links giving them an edge over existing estates, according to property experts.

“Companies are still trying to get into Canning Vale and Kewdale-Welshpool, those areas will never lose their appeal,” said Wayne Chorley, Chesterton International industrial director.

“There is a lot of infill going on and people are starting to recycle some of the buildings, in that they are renovating them to give them more volume.

“Companies want to establish in Canning Vale and Kewdale-Welshpool because traditionally that is where industrial companies have established, and they want to be where the others are.”

The lasting success of these industrial estates, according to CB Richard Ellis industrial executive Rocco Demaio, could be attributed to their excellent design and presentation standards.

“The presentation of the estate is very important. Canning Vale in particular has excellent develop-ment guidelines, which means the value of the properties are maintained,” Mr Demaio said.

“It ensures a standard of

quality … and people flock there.”

Land in Canning Vale is limited, with less than 20 blocks left, and is selling for between $65 and $85 per square metre for blocks between one and two hectares.

Transport links also were crucial to any industrial area. The Kewdale-Welshpool area has the unique advantage of being close to road, rail and air links, according to Knight Frank commercial and industrial director Martin Reeson.

“You couldn’t get a greater concentration of transport links than what you have out there,” Mr Reeson said.

“With Kewdale-Welshpool you a have very good road system, with the Tonkin, Leach and Albany Highways running past, as well as the freight terminal nearby, which is the only place containers come in from the eastern states.”

Perth Airport is less than a kilometre away and Fremantle port is only 20km down Leach Highway.

Land in Kewdale-Welshpool is selling for between $90 to $110 per square metre for a block between one and two hectares and up to $150 for smaller lots.

Mr Reeson expected blocks in Access Park, LandCorp’s new Forestfield industrial estate, to be immensely popular. He said industry was likely to view it as a timely extension to the Kewdale-Welshpool estate.

LandCorp anticipates the 61ha estate, formerly the Westrail Marshalling Yards, will attract transport and distribution com-panies.

Land in Access Park is selling for between $70 and $85 per square metre, depending on block size.

The nearby 500ha industrial estate at Perth Airport is also starting to attract industry attention with Cummins Engineering moving in with Western Power and Australia Post set to follow.

Mr Reeson suggested some major companies located in Kewdale-Welshpool may be tempted to the new lease-hold estate in the future, creating space for others eager to move into the industrial heart of the metropolitan area.

Colliers Jardine research manager David Cresp pointed to industrial estates such as Bibra Lake as the home of industry in the medium term. Land in Bibra Lake is selling for between $45 and $65 per square metre for a one to two hectare block.

In the long term, Mr Cresp said the planned 1000ha Hope Valley-Wattleup heavy and general industrial estate, to the south of the metropolitan area, would easily provide for industrial expansion.

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