Centuria Industrial REIT has started building a new industrial facility in Canning Vale in Perth to take advantage of the city’s low vacancy rates, limited forecast supply and rising industrial rents. 

The REIT, which is said to be Australia’s largest listed industrial fund, snapped up the 2.5-heactare brownfield site in June, with plans to develop an institutional-grade dual-tenancy facility valued at $31 million.  

The development will provide 8,600 sqm and a further 3,700 sqm of industrial-grade accommodation, while incorporating a PV solar system, recycled water, EV forklift charging stations, sustainable building materials and a drought-tolerant native eco-system.  

Perth is one of Australia’s leading cities in rental growth, with a 0.9% vacancy rate and 19.6% year-on-year market growth.  

Currently, 55,900 sqm is under construction, aiming to be market ready for mid-2023 with a staggering 47,350 sqm pre-committed for lease. 

“Perth’s core, supply-constrained industrial market provides an exceptional opportunity to capture strong tenant demand from the burgeoning e-commerce sector and businesses looking to increase their on-shoring capacity to avoid supply chain disruption,” said Jesse Curtis, CIP Fund Manager and Centuria Head of Industrial.  

“This development project provides an opportunity to capture rental growth. Importantly, we have selected a dual-tenancy sustainable design configuration to meet demand for last-mile, urban infill industrial facilities.”  

The 204 Bannister Road site is set for a sustainable 5-star Green Star rating.  

Centuria’s in-house development team has contracted Cloud Heights Building Co. to undertake the project, with completion projected for the second quarter of next year.  

Sustainability is an important consideration for the property industry, and last month Syngenta Australia Vegetable Seeds Warehouse in Somersby, New South Wales, achieved a 6-star rating on the newly launched NABERS Energy rating for Warehouses and Cold Stores. 

Next year will also see another large-scale project break ground with the development of Brandon Park Shopping Centre in Melbourne’s southeast suburb of Wheelers Hill.