K&S signs record facility lease in Perth


Up to 15-year deal allows company to consolidate its city operations on a single site

K&S signs record facility lease in Perth
K&S Freightlines will be moving into a new home in Perth

 

Industrial property agent Savills in Western Australia says a new deal with K&S Freightlines is the highest value lease of an existing facility in Perth’s eastern precinct in several years.

K&S will move into the former premises of switchroom maker HVLV on Lakes Road in Hazelmere. It will be consolidating several smaller sites into the single five-hectare property, Savills WA associate director Matthew Hopkins says.

"They have been in the market for an industrial facility with a focus on occupation in 2015, and Savills has been working closely with them to find the right tenancy opportunity," he says.

Hopkins says the deal represents significant confidence in both the WA economy and the market for industrial property.

"Outside of the pre-commitment leasing segment, the lease to K&S Freightlines is the largest lease of an existing facility in Perth’s eastern industrial precinct since 2013," he says.

K&S will move in on an initial five year lease, but the contract includes two optional extensions of five years each.

"[There is] a level of confidence that is seeing occupiers rationalising and re-balancing their business needs and driving demand for more efficient and better quality business-ready warehouse and logistics space."

"Backfilling of existing space is actively taking place and there continues to be a reasonable level of demand, especially for larger properties."

This is coming from businesses that are not reliant on the dwindling mining sector.

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