Jaw-dropping price for Seaford signage factory
Prices soar for industrial properties due to severe stock shortage
A Seaford factory has been snapped up for an eye-watering multi-million dollar sum prior to auction.
The factory/warehouse/office building at 23 Sir Laurence Drive (pictured above), sold for a whopping $4.235 million, on December 11.
The price was one of the highest achieved for an industrial property in recent times, according to Barry Plant Commercial Director Benjamin Klein.
“The building rate of $2000 per square metre (approx.) was a significant sale price for the surrounding Seaford area,” he said.
Four buyers made offers that drove up the price well beyond the seller’s expectations of around $4 million.
Three were owner-occupiers, and one was a neighbouring businessperson who owned the factory next door.
After considering all four offers, the seller decided not to proceed with the auction and accepted the irresistible one made by an owner-occupier from Mordialloc.
“The buyer was running two industrial businesses there, and was looking to expand his business into Seaford,” Mr Klein said.
“The seller did really well.”
The seller bought the property in 2002 for $210,000, knocked down the original factory, and built the large modern building in 2005, according to Mr Klein.
“They have been running a successful signage business there for nearly 20 years,” he said.
The property was an outstanding opportunity for buyers seeking a strategic location and top-tier facilities.
In one of Melbourne's most established industrial precincts, it is located near main arterial roads and includes a 2168 sq m plus mezzanine building on 3953 sq m of land.
The high, clear-span warehouse with a large solar roof panel system, modern offices, staff amenities and a good security system attracted strong interest.
Three container-height roller doors and onsite parking for more than 20 cars added to its appeal.
Mr Klein said the property also sold for a price beyond expectations because there was a severe lack of industrial stock throughout Melbourne.
“There is huge demand for industrial properties of this size and there is hardly any stock around,” he said.
“Properties like this are sought after and are snapped up quickly.”
He pointed to the factory at 1 Woodbine Court, Wantirna South (pictured below), which attracted strong interest and sold to an owner-occupier for $1.45 million, prior to auction.
This transaction mirrored the ever-evolving character of the industrial market in Wantirna South, underscoring the ongoing expansion and growth within this sector, Mr Klein said.
Opting to sell before the scheduled auction proved to be a challenging decision for the seller, but they ultimately chose to proceed with the sale, he added.
The highly visible corner factory in a prime location was an affordable opportunity, and also an exceptional one because of the easy access to major transport routes, including EastLink and Burwood Highway.
Its ample and versatile floor space of 421sq m accommodates a wide range of business needs, making it an adaptable choice.
“There are lots of buyers out there on the hunt for this type of property,” Mr Klein said.
“And quite a few disappointed ones that have missed out on these sales.”
Mr Klein noted Melbourne’s industrial property market was buoyant in 2023 and he expected it to power through 2024, as more listings come on the market to meet the demand.