An Overview of Leasing Volumes in 2019
2019 is almost over and there is so much in store for the next year. But this year has been a busy year for leasing volumes. In 2019, the recorded number of leasing volumes all over Melbourne has reached over 700,000m2 of industrial floorspace. These are properties that are above 5,000m2. By the third quarter 0f 2019, the leasing volumes have surpassed the decade long average for takeup in Melbourne, that around 20% of that record actually came from Q3.
What makes Melbourne such an attractive place for many individuals?
According to many studies and the recent list by the Economist Intelligence Unit, Melbourne is considered one of the best places to live in. In fact, it came in as the second most livable city. Many have even regarded Melbourne as a better place than Australia’s capital city, Sydney. Here are some reasons why.
It is cheaper
For many Australians, paying rent has become an even bigger issue than it was before. Because of a variety of reasons, renting a house today is not as easy as it seems. The property market prices have indeed affected the cost of rent so it’s something that they definitely consider before anything else. Melbourne is much cheaper in terms of face rents and underlying land values. So naturally, the cost of rent is more affordable than Sydney or Perth. In terms of cost of living, Melbourne is more cost-effective.
The job market in Melbourne is said to have some more diverse job opportunities for Australians and even migrants compared to other cities. If you’re in the field of Information Technology, Melbourne would be the place for you because of the booming IT industry there.
Australia, in general, has warm weather, but compared to Sydney, Melbourne is much cooler. If you’re someone who doesn’t really adapt well to heat, Melbourne is a much better choice for you. Melbourne is also known for the “four seasons in a day” phrase, which means that the weather could quickly change from hot to cold.
Australians are naturally nice people, but many can attest that people in Melbourne are much more friendly compared to other cities. This is not to pit one against each other because it varies from individual to individual. But nevertheless, you will find that Victorians and Melburnians are just genuinely nice people.
This year, there’s a growing presence of the e-commerce groups in the nation, which made the list of the industries that took up leasing deals. Other industries include transport, logistics, and freight groups. Other industrial estates are becoming available for pre-lease as well which followed the “recent trend of big institutional land purchases the last 18 months based on the lack of industrial zoned land remaining across Melbourne to service future requirements of the market.”
Overall, Prime vacancy fell to 1.1% which is a record low in Melbourne’s West while the secondary rents continue to increase due to a lack of available prime grade buildings.