Caterpillar grabs slice of prime real estate


Catepillar enters into one of the biggest industrial warehouse lease agreements seen in Melbourne this year

By Rob McKay | September 30, 2010

Heavy vehicle and mining equipment manufacturer Catepillar has entered into one of the biggest industrial warehouse lease agreements seen in Melbourne this year.

Catepillar has signed an agreement for a 30,746 sqm warehouse in the Somerton Logistics Centre, thought to be for about $65 per sqm, CB Richard Ellis (CBRE) revealed yesterday.

It leaves one vacant building on the speculatively built estate. The move follows hard on the heels of Mainfreight’s lease on 11,128sqm two weeks ago, also thought to be for about $65 per sqm.

CBRE reiterated that the market has been tightening for industrial space as companies emerge from the recent economic downturn.

"The quality of the buildings and the increasingly limited opportunities for larger occupiers in Melbourne’s northern suburbs is driving interest in the Somerton estate," Industrial and Logistics Services Director Dean Hunt says.

"A total of 237,000sqm of industrial space has been absorbed in Melbourne’s north in the past 12 months, taking into account facilities of 3,000 square metres and above.

"This has inverted the demand/supply imbalance in the north, leaving landlords in a much stronger negotiating position."




You can also follow our updates by joining our LinkedIn group or liking us on Facebook