The Toyota plant at Altona is 68 hectares. Photo: Penny StephensThe end of Victoria’s car industry will spark a slow but seismic shift for some industrial property markets and impact on values, agents say.
Between them Holden and Toyota own about 41 hectares in Port Melbourne, while Toyota owns 68 hectares in Altona.
Ford’s sites in Broadmeadows and Geelong span 133 hectares.
The closures will result in potential vacancies and a weakening in secondary industrial markets around the big three’s manufacturing facilities, where the majority of automotive component suppliers are clustered, CBRE’s Matt Haddon said.
In Port Melbourne those industries are mainly located in Bertie, Bridge, Fennell, Plummer, Turner, Lorimer and Salmon streets.
In Altona they gravitate to Dohertys, Kororoit Creek and Millers roads, as well as Grieve Parade.
Holden’s 38-hectare plant at Fishermans Bend will more than double in value once it is subdivided into smaller portions and better connected to the city by public transport in coming years, Lemon Baxter director Richard Hutton said.
It falls outside the substantial rezoning of nearby areas of Fishermans Bend designed to encourage residential development.
But Toyota’s three-hectare head office and car park beside the West Gate Freeway sits within the newly rezoned area, he said.
Businesses currently leasing factories in Fishermans Bend can expect to be pushed out if they haven’t left before 2016 when the rezoning brings the first of an expected 50,000 new residents.
Large developers have already shown an interest in the GMH site, which spreads across Lorimer Street, Todd Road and Cook Street, and includes dozens of large warehouses, many of which are expected to be refitted as boutique offices.
Mr Hutton expects one developer will buy the entire GMH site then sell it off in smaller portions, perhaps after devising a master plan for a series of new business parks.
A similar fate awaits Ford’s Broadmeadows plant. Its superior location on the Hume Highway and quality buildings was likely to result in it being master planned into an estate for bulky goods, retail stores, industrial parks or a logistics base, Colliers International’s Tony Iuliano said.
Toyota’s Altona plant was in a prime location for a major logistics site, he said.
In Fishermans Bend, sites south of the West Gate Freeway have been rezoned to allow for high-density residential development.
Properties to the north of the freeway – including large estates occupied by GMH, Kraft and Boeing, are expected to stay low-rise and provide workplaces for the new residents.
”But,” Mr Hutton said, ”the days of an industrial shed anywhere in Fishermans Bend are numbered.
”We expect the low-rise pocket of Fishermans Bend will develop like Cremorne, in Richmond, attracting boutique companies particularly from the design and IT-fields, which operate from former warehouse buildings.”
Industrial occupiers, however, have already started to feel the renewal with some landlords not extending leases or increasing rents to reflect the higher holding costs (rates, land tax etc) being charged to them.
”We’ve already moved several tenants out of the area, mainly to Melbourne’s western suburbs,” Mr Hutton said.
In a testament to how fast commercial values have moved in the area, half of a former GMH car park at 600 Lorimer Street, Port Melbourne, which Mirvac sold for $320 per square metre about five years ago, sold late last year for about $800 per square metre.
Mr Haddon said few major institutional property owners were exposed to the car makers.
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