Savills Research Western Australia Quarter Times Perth Industrial Q3/2016
Key Market Indicators Perth Core - Belmont, Canning Vale, Kewdale, Welshpool, Jandakot Airport, (excludes Osborne Park) Rental Net Face ($/sq m) 75 105 55 85 Yield - Market (%) 6.50 7.75 7.25 9.00 IRR (%) 8.00 9.25 8.75 9.50 Outgoings - Total ($/sq m) 20 40 15 30 Capital Values ($/sq m) 975 1,600 600 1,175 Land Values 3,000-5,000 sq m ($/sq m) 375-525 Land Values 10,000-50,000 sq m ($/sq m) 275-425 Land Values 10 ha and above ($/sq m) 200-325 Perth North - Balcatta, Joondalup, Malaga, Wangara, Landsdale Rental Net Face ($/sq m) 70 100 55 80 Yield - Market (%) 7.25 8.50 7.50 9.25 IRR (%) 8.25 9.25 8.75 9.75 Outgoings - Total ($/sq m) 20 40 15 30 Capital Values ($/sq m) 825 1,375 600 1,075 Land Values 3,000-5,000 sq m ($/sq m) 300-475 Land Values 10,000-50,000 sq m ($/sq m) 100-425 Land Values 10 ha and above ($/sq m) 50-325 Perth South - Bibra Lake, Henderson, Jandakot, Kwinana, Myaree, Naval Base, O Connor, Rockingham, Latitude32 Rental Net Face ($/sq m) 60 95 45 80 Yield - Market (%) 7.25 8.75 7.75 10.00 IRR (%) 8.50 9.75 9.25 10.50 Outgoings - Total ($/sq m) 15 35 15 30 Capital Values ($/sq m) 675 1,300 450 1,025 Land Values 3,000-5,000 sq m ($/sq m) 175-450 Land Values 10,000-50,000 sq m ($/sq m) 125-300 Land Values 10 ha and above ($/sq m) 90-200 savills.com.au/research 2
Perth East - Armadale, Forrestdale, Forrestfield, Maddington, Hazelmere, Bayswater, Bassendean, South Guildford Rental Net Face ($/sq m) 70 105 55 90 Yield - Market (%) 6.75 8.75 7.75 9.50 IRR (%) 8.00 10.25 9.25 10.50 Outgoings - Total ($/sq m) 15 40 15 30 Capital Values ($/sq m) 800 1,550 575 1,175 Land Values 3,000-5,000 sq m ($/sq m) 180-475 Land Values 10,000-50,000 sq m ($/sq m) 140-300 Land Values 10 ha and above ($/sq m) 85-225 Major Leasing Activity Select Perth Industrial Leases Date Property GLA (sq m) Rent ($/sq m) Tenant Jun-16 857B Abernethy Rd, Forrestfield 7,000 105 AEC Jun-16 256 Berkshire Rd, Forrestfield 15,000 73 M3 Logistics Jun-16 Units 1&2, 22 Hyne Rd, South Guildford 8,400 na Chemist Warehouse Jul-16 2/33 Competition Way, Wangara 801 95 Right2Drive Jul-16 2 Bannister Rd, Canning Vale 14,400 85 Ikea Aug-16 56b Fawcett Cres, Perth Airport 2,955 155 Fuchs Lubricants Aug-16 176 Beringarra Ave, Malaga 3,001 na Frontline Fire & Rescue Sep-16 5 Glyde St, Malaga 2,039 120 Global Electrotech Sep-16 Lot 7 Hugh Edwards Dr, Perth Airport 6,063 na CHS Sep-16 Lot 9 Tarlton Cres, Perth Airport 4,133 na Monde Nissin na = not currently available or not able to be disclosed ~approximate range Select Perth Industrial Pre-Commitment Leases Date Property GLA (sq m) Rent ($/sq m) Tenant Apr-16 Berkshire Rd, Forrestfield** 7,000 na API Aug-16 Jandakot Airport 7,370 na ACCO Sep-16 Clifford St, Maddington 3,900 na Makita Sep-16 Jandakot Airport 2,700 na Grays Online na = not able to be disclosed **not previously reported savills.com.au/research 3
Major Sales Activity Select Perth Industrial Investment Sales Date Property Price ($m) GLA (sq m) $/sq m Yield (%) Apr-16 15 Ashby Cl, Forrestfield 18.41 11,416 1,613 7.50 May-16 172 Kewdale Rd, Kewdale 8.50 4,768 1,783 8.50* May-16 54-56 Banksia Rd, Welshpool 7.50 6,560 1,143 8.23 Jun-16 119 Kelvin Rd, Maddington ^ 5.10 2,917 1,743 8.53 Aug-16 310 Selby St, Osborne Park # 36.00 4,997 7,204 6.03* ^ sale & leaseback *passing # portfolio sale, combined yield quoted na = not currently available or not able to be disclosed Select Perth Industrial Vacant Possession Sales Date Property Price ($m) GLA (sq m) $/sq m Jul-16 1 Welsh Pl, Osborne Park 1.30 1,351 961 Jul-16 16-18 Coulson Way, Canning Vale 2.86 1,913 1,495 Jul-16 34-36 Canvale Rd, Canning Vale 2.40 2,100 1,143 Jul-16 123-129 McDowell St, Welshpool 9.76 5,283 1,847 Aug-16 42 Tennant St, Balcatta 1.38 850 1,618 Aug-16 144 Welshpool Rd, Welshpool 2.00 1,198 1,669 Aug-16 5 Chifley Brace, Jandakot 3.30 1,320 2,500 Aug-16 2 Madison St, Canning Vale 2.40 2,033 1,181 Select Perth Industrial Land Sales Date Property Price ($m) Area (sq m) $/sq m Sep-16 Production Rd, Canning Vale ~13.0 ~40,000 ~325 ~approximate range This information is general information only and is subject to change without notice. No representations or warranties of any nature whatsoever are given, intended or implied. Savills will not be liable for any omissions or errors. Savills will not be liable, including for negligence, for any direct, indirect, special, incidental or consequential losses or damages arising out of our in any way connected with use of any of this information. This information does not form part of or constitute an offer or contract. You should rely on your own enquiries about the accuracy of any information or materials. All images are only for illustrative purposes. This information must not be copied, reproduced or distributed without the prior written consent of Savills. Savills 2016 savills.com.au/research 4
Savills Australian Capital Territory Research Valuations Industrial Sales & Leasing Project Management Houssam Yakzan +61 (0) 2 8215 8980 hyakzan@savills.com.au Phil Harding +61 (0) 2 6221 8293 pharding@savills.com.au Theo Dimarhos +61 (0) 2 6221 8275 tdimarhos@savills.com.au Mitchell Thomas +61 (0) 2 6221 8294 mthomas@savills.com.au Savills New South Wales Research Research Valuations Industrial Sales & Leasing Tim Mitchell +61 (0) 2 8215 8856 tmitchell@savills.com.au Houssam Yakzan +61 (0) 2 8215 8980 hyakzan@savills.com.au Russell Nicolson +61 (0) 2 8215 8987 rnicolson@savills.com.au Darren Curry +61 (0) 2 9761 1304 dcurry@savills.com.au Metro & Regional Sales Asset Management Project Management Robert Lowe +61 (0) 2 8215 8841 rlowe@savills.com.au Phil Pearsall +61 (0) 2 8215 8874 ppearsall@savills.com.au Gary Finnegan +61 (0) 7 3018 6703 gfinnegan@savills.com.au Savills Queensland Research Valuations Industrial Sales & Leasing Asset Management Yvette Burton +61 (0) 7 3002 8829 yburton@savills.com.au Leigh Atkinson +61 (0) 7 3002 8852 latkinson@savills.com.au Callum Stenson +61 (0) 7 3002 8832 cstenson@savills.com.au Chris Ainsworth +61 (0) 7 3002 8831 cainsworth@savills.com.au Sunshine Coast Gold Coast Project Management Scott Gardiner +61 (0) 7 5313 7514 sgardiner@savills.com.au Kevin Carmody +61 (0) 7 5509 1700 kevin@savillsgc.com.au Ken Ng +61 (0) 7 3018 6705 kng@savills.com.au Savills South Australia Research Valuations Industrial Sales Industrial Leasing Katy Dean +61 (0) 8 9488 4140 kdean@savills.com.au Alastair Johnston +61 (0) 8 8237 5041 acjohnston@savills.com.au Steve Bobridge +61 (0) 8 8237 5015 sbobridge@savills.com.au Geoff Shuttleworth +61 (0) 8 8237 5017 gshuttleworth@savills.com.au Asset Management Jeffrey Klaebe +61 (0) 8 8237 5018 jklaebe@savills.com.au Project Management Steve Christodoulou +61 (0) 8 8237 5004 schristodoulou@savills.com.au Savills Victoria Research National Research VIC Industrial North & West Industrial South & East Tony Crabb +61 (0) 3 8686 8012 tcrabb@savills.com.au Monica Mondkar +61 (0) 3 8686 8034 mmondkar@savills.com.au David Norman +61 (0) 3 8686 8035 dnorman@savills.com.au Lynton Williams +61 (0) 3 9947 5100 lwilliams@savills.com.au Industrial Investments Valuations Asset Management Project Management Ben Hegerty +61 (0) 3 8686 8074 bhegerty@savills.com.au Ross Smillie +61 (0) 3 8686 8068 rsmillie@savills.com.au Paul Le Sueur +61 (0) 3 8686 8055 plesueur@savills.com.au David Hayden +61 (0) 3 9445 6806 dhayden@savills.com.au Savills Western Australia Research Valuations Industrial Sales & Leasing Industrial Sales & Leasing Katy Dean +61 (0) 8 9488 4140 kdean@savills.com.au Mark Foster-Key +61 (0) 8 9488 4145 mfosterkey@savills.com.au James Condon 61 (0) 8 9488 4169 jcondon@savills.com.au Matthew Hopkins 61 (0) 8 9488 4119 mhopkins@savills.com.au Asset Management Jason Ridge +61 (0) 8 9488 4118 jridge@savills.com.au Project Management Graham Nash +61 (0) 8 6271 0306 gnash@savills.com.au