Perth Malaga action

In recent years there has been a growing trend for small and medium companies to buy rather than lease property. Perth’s Malaga industrial precinct is an area now being sought out by production based companies seeking cost efficient premises, according to Colliers International.

A number of national production based companies previously occupying premises in Osborne Park have taken the opportunity to cash in on the high land prices of Osborne Park (now achieving over $400 per sq m) and move to the still relatively affordable but growing Malaga industrial precinct, where land prices are around $100 to $120sqm.

The most recent company to follow the trend has been Consolidated Bearing Company, which recently relocated from its Osborne Park headquarters, to an existing office warehouse in Malaga.

Colliers International also negotiated the purchase of 789 Marshall Road, Malaga, a 1510sqm office warehouse. This property is the last significant purchase opportunity on a main thoroughfare within the Malaga industrial / commercial precinct.

Terry Menage, Sales Executive of Colliers International said, that strong demand over the last few years has meant that there are now no opportunities to purchase property on any of the main thoroughfares through the Malaga industrial / commercial precinct.

Lack of future opportunities on these busy thoroughfares means that current owners of larger property with a prime location are not keen sellers.

Menage said while rents in some Perth industrial areas were softening and land values had stagnated, Malaga was continuing to see solid levels of growth.

The relocation of Consolidated Bearing Company from Osborne Park to Malaga will see a prime Osborne Park property come to the market.

67 Howe Street, Osborne Park is for sale with an asking price of $1.55 million plus GST. The property consists of 375sqm of ground floor and office showroom accommodation, 340sqm of first-floor office accommodation and an attached warehouse of 1,050sqm. The property has a total land holding of 4,047sqm.

This complex is located in a prime position only one property from the corner of Hutton Street.

Colliers International sales executive Anthony Vulinovich says 67 Howe Street represents a fantastic opportunity for developers, investors and owner occupiers.