Category: Warehouse Real Estate

Your Guide To Buying Industrial Real Estate In Perth

Many people find comfortability when purchasing a residential property because they are likely to have bought a house or apartment before. Your experience helps guide your decision-making process because you know what to look out for.

Industrial real estate, however, can be a little trickier and you must consider some other variables to ensure your money is well spent and you’re likely to see a return on investment.

As the risks are generally higher with a commercial property it’s worth doing your due diligence to help find the industrial property for sale that will be advantageous for your portfolio. Here’s our guide to buying industrial real estate in Perth.

Where do I look for industrial property in Perth?

Before assessing your different industrial real estate options it’s worth investigating what Perth industrial area is right for your business.

Industrial areas are normally situated close to transport and road links on the fringe of inner Perth for fast access to other areas of the state or freight hubs such as Perth Airport or Fremantle Port.

Perth has 4 distinct industrial quadrants which all offer different benefits dependant on if you’re looking to distribute or receive goods and which arterial roads are critical to the business you’re involved with.

They are:

  • South East Perth – includes Belmont, Canning Vale, Forrestdale, Kewdale, Maddington & Welshpool.
  • North West Perth – includes Balcatta, Joondalup, Landsdale, Wangara & Yanchep.
  • North East Perth – includes Bassendean, Bayswater, Bellevue, Malaga, Midvale, Morley & Osborne Park.
  • South West Perth – includes Bibra Lake, Cockburn Central, Jandakot, Naval Base, O’Connor, Port Kennedy & Rockingham.

Before settling on an area it’s important to also consider things such as:

  • Future government infrastructure plans for the area.
  • Growth projections and property value fluctuations.
  • Zoning.
  • Types of other businesses in the area.

All these elements can heavily influence your ability to generate higher rental yield and capital growth in future years.

In Perth, we see particularly good returns on the South East area due to its accessibility to the Perth airport, freight rail line and major freeways. For more information on Perth’s industrial areas and trying to choose the one right for you follow the link here.

What other factors do I need to consider?

Here’s a breakdown of some other key factors you need to consider before purchasing industrial real estate.

The Building

The building is likely going to be one of the first factors that draw you towards a property.

Ensure the building has a layout that is complimentary to your business or the types of businesses you want to attract. Many industrial properties have been created for a specific purpose so consider buildings that have increased versatility to accommodate multiple types of businesses.

You should also take the time to thoroughly inspect the property and make sure the building is compliant with health and safety regulations.

Whilst renovating a residential property can be relatively cheap because you’re working with smaller spaces the same can’t be said for an industrial building.

Money that you have to sink into preparing a property ready for a tenant or yourself before moving into can detract from your overall bottom-line becoming a very costly venture.

The Lease and The Tenant

The lease and the tenant are crucial parts of purchasing industrial real estate.

In a best-case scenario, your property will come with a tenant which means you don’t have to worry about finding one after settlement.

High-quality tenants will have sound rental history and will be unlikely to default on rental payments. The most sought-after tenants are considered to be ‘blue-chip’ tenants’ likely government or large corporate bodies who will rent your premises for a long period with superior financial resources at their disposal.

If you’re considering purchasing a property that doesn’t come with a tenant, make sure the location and building condition are complimentary to finding a tenant quickly. The longer the property sits idle the longer it will be before you begin to experience a return on investment.

Leases for industrial properties are generally longer than residential properties and it is not uncommon to have leases that are five-year periods with the option to renew for another five years following that.

Commercial leases can be very lengthy in comparison to residential leases so it’s important to digest every detail carefully and if there are parts you’re unsure of consult a legal professional to clarify.

Asset Fundamentals

Asset fundamentals are the additional benefits of an industrial property besides tenancy and the building condition.

This might include anything from:

  • Onsite accessibility – does the property have enough access points and once onsite does it allow for manoeuvrability of large vehicles like trucks and semi-trailers?
  • Office to warehouse ratio – does the industrial property for sale have a good split between office and warehouse?
  • Site coverage – does the building occupy a good proportion of the property or is there wasted space?
  • Offsite access – does the property have good access to major arterial roads?

The asset fundamentals of a property can often be the reason why a tenant is hesitant to move out of an industrial property and if you’re looking for a tenant it might be these factors that get them over the line.

Outgoings

One of the major advantages of owning an industrial property in Australia is that the tenant will usually pay for most of the outgoings including insurance, repairs, maintenance and council rates.

Unlike residential properties where these outgoings typically fall on the property owners, commercial property owners can retain a higher portion of the collected rent.

The terms and conditions regarding outgoing expenses vary from property to property. The best practice is to articulate this detail up front, so it’s understood and confirmed in the lease agreement.

If you’re looking for assistance with finding the perfect industrial property for sale in Perth contact the expert team at Ross Scarfone Real Estate today.

We can assist you with all aspects of commercial and industrial sales including leasing, property management, valuations, investment, development and specialise in property through the South Eastern Corridor of Perth.

Belmont Commercial Real Estate: Lease Guide

Belmont is one of the most centrally located commercial property areas in Perth. It’s perfectly situated between Perth CBD and Perth Airport and bordered by main highways that can quickly transport large freight, as well as make for an easy commute for staff.   

Belmont is a popular location for many Perth offices and warehouses for lease because, compared to Perth’s other industrial areas, travel and distribution times are very quick and direct. It won’t take you long to get onto a highway heading in any direction in WA. Great Eastern Highway and Canning Highway run from eastern WA, past Perth Airport and straight through to Fremantle Port, as does Leach Highway.

belmont commercial real estate
Belmont commercial real estate

Belmont’s commercial real estate for lease is primarily warehouses, offices and office warehouses, catering to a range of industrial and commercial businesses. As a light industrial area, Belmont can accommodate heavy machinery and trucks, and Belmont’s growing residential, retail and office real estate are fueling population growth.

Here’s the commercial real estate available in Belmont and why you should consider Belmont for your next commercial lease.

Warehouses for Lease in Belmont

Belmont’s warehouses for lease range from huge industrial properties of over 2,000 square metres to tidy little office warehouses less than 500 square metres. Belmont has been a prime commercial property location for decades which means you’ll be able to find older properties from the 80s that have been refurbished up to recent constructions will all the modern facilities. This variation means, no matter what your budget or requirements, Belmont will usually have a warehouse to suit your needs.

Warehouse for lease in Belmont

Why lease a warehouse in Belmont?

As the most centrally located industrial area in Perth for the airport, freight rail line and CBD, Belmont offers increased efficiency for delivery of goods and access to other industrial supplies. Leasing a warehouse in Belmont puts your business minutes from Perth city, Perth Airport and freight rail lines.

Belmont’s wide freeways and truck-friendly intersections are designed to support Belmont’s position as one of Perth’s most industrial areas. The City of Belmont is committed to maintaining Belmont as one of Perth’s most productive areas. This means ongoing improvements to infrastructure to support the area.

Offices for Lease in Belmont

Offices for lease in Belmont are located just across the river from Perth CBD and are mostly situated in modern office complexes or attached to a warehouse property. Belmont is one of Perth’s most commercial areas and in recent years has shifted from predominately industrial to mixed business with the construction of several large office complexes and businesses hubs within the suburb.

Office for lease in Belmont

Why lease an office in Belmont?

Offices in Belmont are strategically placed to offer services to Belmont’s industrial area, Perth city, Victoria Park and Perth’s south-east. There are over 3,500 businesses within the City of Belmont, making it one of Perth’s busiest commercial hubs.

Travelling to the office or out to visit clients is made easy by main highways providing access to all of Perth. The City of Belmont also provides a free shuttle service for workers from Belmont Forum to their offices in Belmont Business Park.

The upcoming construction of the Forrestfield-Airport Link, due in 2021, will connect Perth Airport and the Perth foothills to Perth city via a railway station in Belmont, adding to Belmont’s strategic location and commercial value.

The recent retail and apartment developments along Great Eastern Highway and the redevelopment of Belmont Shopping Centre has increased the residential population of Belmont as well as the need for professional services.

Office Warehouses for Lease in Belmont

Due to Belmont’s strategic location as a business hub and an ideal distribution and logistics site, many of the commercial properties in Belmont are office warehouses. Office warehouses in Belmont vary is size and configuration, allowing you to choose a commercial property that suits your business, whether that’s a larger warehouse and small office, or vice versa.

Belmont office warehouse for lease

Some office warehouses in Belmont include a showroom to display your goods and serve as a retail store. For many businesses that would otherwise have to operate from several commercial properties, Belmont offers a location where your enterprise can be consolidated and become more efficient.

Why lease an office warehouse in Belmont?

Leasing an office warehouse in Belmont will enable your business to efficiently provide goods and services throughout Perth and WA, while also positioning your staff in an easily accessible location. An office warehouse in Belmont can provide your business with the opportunity to serve as the manufacturing, distribution and retail site for your company. Reducing transport costs and allowing for fast communication within the company.

Leasing an office warehouse in Belmont gives you the flexibility to find a property configuration that will suit your needs and enhance your business.

Perth’s Industrial Areas: A Guide for Industrial Real Estate

Perth’s light industrial areas are strategically placed throughout the Perth metro to allow businesses to set up their locations near arterial roads that can carry trucks and heavy machinery. In most cases, this means being on the fringe of inner Perth to allow vehicles to quickly get on freeways that will take them to other areas of the state or freight hubs like Fremantle Port, Perth Airport or freight rail terminals.

If you’re looking for a warehouse, factory, workshop, distribution facility, read this quick guide to Perth’s industrial areas.

We’ve split Perth into four quadrants to take a quick look at which suburbs have the most industrial properties to lease and what each location has to offer if you’re looking to distribute or receive goods.

South East Perth Industrial Area

South East Perth

Notable suburbs:

Belmont, Canning Vale, Forrestdale, Kewdale, Maddington & Welshpool

Main arterial roads:

The South East Perth industrial areas are serviced by Roe Highway, Canning Highway and Leach Highway connecting to Kwinana Freeway heading south. Eastern routes Brookton Highway and Albany Highway carry traffic heading to the south-east areas of WA with Great Eastern Highway heading northeast.

What is it near?

  • Perth Airport
  • Rail freight terminals
  • East and Southeast highways
  • Belmont, South Perth and Victoria Park are minutes from Perth CBD

North West Perth Industrial Area

North West Perth

Notable suburbs:

Balcatta, Joondalup, Landsdale, Wangara & Yanchep

Main arterial roads:

The North West Perth industrial areas are serviced by Mitchell Freeway and Wanneroo Road allowing heavy vehicles north and south, with access to the airport via Tonkin Highway and Fremantle by West Coast Highway.

What is it near?

  • Northern highways
  • Joondalup CBD

North East Perth Industrial Area

North East Perth

Notable suburbs:

Bassendean, Bayswater, Bellevue, Malaga, Midvale, Morley & Osborne Park

Main arterial roads:

The North East Perth industrial areas are serviced by Roe Highway carrying vehicles south to Fremantle Ports and Perth Airport. Eastern routes Great Eastern Highway, Toodyay Road and Kalamunda Road provide access to the Perth Hills and beyond.

What is it near?

  • Perth Airport
  • East and Northeast highways

South West Perth Industrial Area

South West Perth

Notable suburbs:

Bibra Lake, Cockburn Central, Jandakot, Naval Base, O’Connor, Port Kennedy & Rockingham

Main arterial roads:

The South West Perth industrial areas are serviced by Kwinana Freeway, Stock Road and Rockingham Road running north and south, with Cockburn Road, Leach Highway and South Street providing access to Fremantle Port.

What is it near?

  • Fremantle Port
  • South highways

If you’re looking for an industrial or commercial property to lease in Perth, speak with the local experts that have been helping businesses find properties to help their company thrive.

Ross Scarfone Real Estate has been leasing commercial real estate for over 30 years and has a reputation for excellent service in an ethical and professional manner.

Perth’s 2020 Commercial Property Report: Warehouse

Last month REIWA released their quarterly Perth commercial property market report that revealed the sales statistics of all the commercial properties sold in Perth during the 12 months to September 2019.

We’ve focused on the commercial report on warehouse sales in Perth to analyse what the industrial property market has done in the 12 month period and what you might expect for commercial property sales for 2020.

Perth Commercial Property Sales

While certain Perth commercial property types had an increase sales in the year to the September 2019 quarter, showrooms had a 30.9% growth in demand and offices an 8.5% growth, warehouses for sale continued to feel the effects of the WA’s flat market.

Perth Warehouse Sales

Compared to the 12 months to September 2018, the September 2019 report showed a 12.9% decrease in warehouse sales and a 14% decrease from 5 years ago.

Perth Warehouse Sales by Region

When we looked at where the warehouse sales were coming from in Perth, there were three standout regions: North West – 60 sales, South West – 69 sales and South East – 67 sales.

What’s even more interesting is that both the South East and South West regions outperformed the previous year’s warehouse sales. Where the rest of Perth saw fewer warehouse sales than the previous year.

The South East Perth region was the only area to record higher warehouse sales than 2017, and in fact recorded its highest warehouse sales since 2011, showing promising signs for the area that includes Belmont, Welshpool, Kewdale and Victoria Park.

warehouse-for-sale-perth-by-region-2020

What are Perth Warehouses Costing per Square Metre?

Of Perth’s warehouse sale regions, Inner Perth continues to be the highest cost per square metre at $4,969, growing 9.4% in the last 5 years.

When we looked at the historical data for cost per square metre, we could see that two areas retuned to the higher prices that were seen in 2015, while the remainder continued to see the effects of the slow Perth market.

 Change from 2015Change from 2018Avg in 2019
Perth – Inner+9.4%+20.9%$4,969
Perth – North East-20.4%-7.4%$1,638
Perth – North West-11.6%-3.0%$1,822
Perth – South East-11.4%+1.9%$1,792
Perth – South West+0.5%+2.0%$1,792
Mandurah-14.6%+72.1%$1,914
Greater Perth-9.7%+0.1%$1,835
Cost per Square Metre

Top 5 Suburbs in Perth for Warehouses for Sale

Two of Perth’s North East suburbs topped the list for most warehouses sold in Perth, Wangara and Malaga, contributing 72% of warehouse sales for Perth’s North East region. With North West suburb O’Connor recording 21 warehouse sales, and South East suburbs Canning Vale and Forrestdale combining for 35 warehouse sales.

 SalesPer cent of total sales
Wangara2812%
Malaga229%
O’Connor219%
Canning Vale219%
Forrestdale146%

Summary of Perth Warehouse Sales by Region

perth-warehouse-sales-by-region

If you’re looking for to invest in buying a warehouse in Perth for 2020, here are our top takeaways from September 2019’s quarterly report on commercial property:

  • Warehouses in Perth’s inner continued to increase their value during a tumultuous 5 years of Perth’s commercial property market, increasing cost per square meter by 9.4% compared to the average Perth decline of 9.7%.
  • The South East is showing the strongest signs of recovering from Perth’s slow market by selling the greatest number of warehouses since 2011.
  • The most affordable Perth regions to buy a warehouse are Perth’s North East and South East, with the lowest cost per square metre.

For a detailed breakdown of the Perth commercial real estate market or specific advice on warehouses for sale in Perth, call or email Ross Scarfone Real Estate. Our agents specialise in industrial and commercial real estate in Perth’s south-east corridor including Belmont, Welshpool, Kewdale, Victoria Park and surrounding areas.

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Find The Perfect Warehouse to Lease With Tips From Commercial Property Experts

If you’re thinking about a new warehouse to lease in Perth, or anywhere, it can be an overwhelming task and unless you’re a commercial property expert, it’s easy to feel that you’re under-informed. All of this can lead you to make a poor decision on the warehouse you rent and it having a significant impact on how your business runs for the length of the lease.

Fear not! We’ve gathered some Perth commercial property experts to put together a list of easy to understand tips that will help you be better informed when looking at Perth warehouses to lease and put you in a better position to negotiate the price of your rent.

What To Do Before You Start Looking at a Warehouse to Rent

Plan Ahead…Far Ahead

Looking for a warehouse to rent just before you need one puts you under pressure to find one to lease and it puts you in a weaker negotiating position. The longer lead-in time you give yourself before you need to lease a warehouse, the better your negotiating position will be. You’ll be more informed of what properties are available and how the warehouses you’re considering compare to others that have been in the market.

Planning at least 6 months in advance will also give you enough time to better understand the requirements you have for your next warehouse rental. In this time, you’ll be able to speak to your managers to learn what they think the features of your next warehouse should be. For example, you may need extra loading bays, larger office space or more advanced safety requirements.

Keep an Eye on the Commercial Property Market

By monitoring the commercial real estate market in Perth, in particular warehouses to lease, you’ll give yourself the opportunity to jump on a deal if the market dips. This could end up saving you thousands of dollars in rent each year.

If you’re watching the warehouse lease listings of local commercial real estate agents, you’ll also be able to see which have been sitting on the market for the longest time. This could mean that the owners are eager to get the warehouse leased, giving you an opportunity to negotiate better terms.

Commercial Property Expert Tip #1:

The latest warehouses on the lease market will usually sit at the top of the major commercial real estate websites, but sometimes old listings will be advertised at the top of the list. To get the best understanding of which warehouses have been on the market the longest, head to the website of the commercial real estate agent to find their list of warehouses and head right to the back of the list.


Commercial Property Expert Tip #2:

Subscribe to the email mailing lists of the commercial real estate agents that lease warehouses in Perth. Commercial property agents will regularly send out emails and you’ll be the first to know when a new warehouse appears on the leasing market, and you can be the first to view it. Potentially meaning you won’t have any competition to lease the warehouse, and you will be able to negotiate better lease terms.

Know Your Limit

Before you even consider looking for a new warehouse to lease, you need to have a comprehensive understanding of what rent you can afford to pay. Once we see something we like, we all tend to push beyond our budget to get it. By setting a strict budget for what you can afford, you’ll reduce the risk of putting yourself in a risky financial position by overcommitting.

What to Look for in a Warehouse to Lease

Now that you’ve done your research and are prepared to start looking at warehouses to lease in Perth, here are a few tips from commercial property experts on what to look for.


Think More than Square Metres

When looking at a warehouse to lease, you not only need to think about square metres, you need to think about cubic metres. The cubic meterage of the warehouse will allow you to calculate how much storage space you have.

When considering a warehouse to rent, it’s important to look at the height of the building and whether your storage racks, equipment and machinery will fit. Make sure to measure the height of the access doors as well when looking at the height of the warehouse, you need to be able to get your equipment inside the warehouse.

If you’re not storing stock in the warehouse or have tall equipment, you may not need to lease a warehouse with a high ceiling and can focus on finding a renting a warehouse with lower ceilings.

Commercial Property Expert Tip #3:

If you know which warehouse features are, and aren’t, valuable to your business before you start negotiations, you may be able to lease the warehouse for a lower rent. For example, some businesses will need a warehouse with a high ceiling and will end up paying more for this feature, but if high ceilings aren’t as valuable to your business, you can negotiate down the premium placed on this feature. 


Commercial Property Expert Tip #4:

When it comes to warehouse space, it’s better to overestimate what you need, rather than underestimate. You don’t want to be looking to lease a new warehouse in a years’ time because you’ve expanded beyond the space.

Will You Need Office Space?

Most warehouses for lease come with a small office for a manager to oversee the staff, but if you’re looking to run your entire business from one location, you’ll need an office warehouse to rent. Once you decide you need extra office space in your next warehouse, there are a number of additional factors to consider.

How Much Office Space Will You Need?

You can roughly calculate the square metres you’ll need for your office, by adding up the number of employees you’ll have in the office as either a:

  • Standard desk/cubicle
  • Standard Office
  • Supervisor/Manager work area
  • Supervisor/Manager Office

You can download the exact calculations in our guide How to Choose an Office Space to Lease in Perth.

What Office Features Will You Need?

Here is a couple to consider:

  • Male and female toilets
  • Lunchroom
  • Server room
  • Boardroom or meeting space.
  • Printer and stationary storage.
  • Kitchen

Ask About Everything

You should know a warehouse, inside and out, before you even start negotiations. There are a number of things that you could assume are up to scratch only to find out later that it’s not! Here are a few warehouse features you should ask about with every property you view.

  • Air conditioning and heating: This needs to be able to deal with your staff and any machinery that might be generating heat. If you have stock that needs to be stored at a certain temperature, you need a climate control system you can rely on. Enquire about the age of the warehouse’s systems and when they were last serviced.
  • Safety and security: Your entire stock and machinery inventory could be stored in your warehouse, not to mention your staff. You need a security and safety system that will protect everything in your warehouse from fire and burglary.  

Commercial Property Expert Tip #5:

If you’re going to be running machinery in your warehouse, potentially all day, you want to know that the warehouse’s wiring has the electrical capacity to handle the workload.

What Are Your Distribution Needs?

The distribution of your products and intake of supplies is a major aspect of your business and you need to know that the warehouse you lease will be able to streamline your receiving and distribution as much as possible. Here’s what our expert suggest you keep in mind when looking for a new warehouse to rent:

  • Loading docks: If you need loading docks, make sure they will suit the types of trucks you’ll be using and the area around the loading dock is large enough for them to maneuverer.
  • Access to freeways: How far will your vehicles have to travel to access the major freeways that can take them both around Perth and interstate?

Commercial Property Expert Tip #6:

Be aware of the council restrictions on heavy vehicles around the warehouse. Certain residential zones prohibit trucks and industrial vehicles from travelling through them, meaning you and your suppliers may have to go around the entire area.  

Speak to a Commercial Property Expert

If after reading this article, you’re still not sure of what your warehouse requirements are or where to find the perfect warehouse to lease, speak to the local commercial real estate experts at Ross Scarfone Real Estate. We specialise in commercial and industrial buildings for lease in Perth’s south-east corridor of Belmont, Welshpool, Kewdale and surrounds. You can view our entire list of warehouses and office warehouses to lease and request a tour of the available warehouse properties in the area.