Welcome to the first blog for Kevin Baruffi & Associates. Over the following months we hope to provide you with relevant and useful information about commercial and industrial Real Estate with a particular emphasis on the Willetton and Canning Vale industrial areas.
Along the way, we will feature information about businesses and services that operate in the area and provide some expert advice from guest consultants about what is impacting the Commercial and Industrial real estate market.
Over many years I have personally got to know Landlords and business operators in the local area and during that time I have frequently provided advice about the state of the market, with the belief that the best market place is a well-informed market place.
The Willetton Industrial Area was established in the late 1960’s and early 1970’s and originally comprised of 1000sqm factory/warehouses on ½ acre plots of land or small 100sqm workshops units which were Strata Titled and had rear yards.
Some of the early developers were Jim Granger, who built many groups of small factories and Tony Fini who concentrated on High Road showroom businesses.
The land subdivision design was mainly long narrow lots that suited businesses requiring some frontage but mostly large factory/workshop areas. Most corner lots with dual frontage were ideal for the development of small Strata Titled workshops.
The consideration of the day, was to develop as much floor space with as little parking as possible.
This legacy impacts land use today, as the existing Town Planning Scheme and Development Regulations are focused on car parking, thus preventing the diversity of use that the current market is seeking.
My discussions with the City of Canning over many years, and most recently with the Strategy Planner and Business & Investment Manager, has often focused on this issue.
We have seen the demand for service industry, office space, recreational industry/exercise and teaching space grow, as business operators set to take advantage of the large local residential base that surrounds the Willetton Industrial Area.
This long neglected area which, has mainly been a rate income cash resource for the City of Canning, is long overdue for more creative planning strategies to accommodate the demand for change of use.
My office alone receives at least one call per week from prospective restaurateurs looking for a space to operate a restaurant.
With the right amount of advocacy and lobbying, hopefully we shall see the Willetton Industrial Area transition to a more diverse land use precinct, offering opportunities to a wide range of business to establish in the area and provide residents a vibrant range of business, industry, cultural and recreational services and experiences.
State of the Market
Along with most of the WA economy, local businesses are being challenged by lower demand, strong competition and reduced margins.
Demand for leasehold space has dropped significantly with a longer vacancy period between tenants vacating and new leases being established.
It is not unusual for premises to take 6 to 12 months to secure tenants, with the consequence that rental rates are under pressure.
In such a challenging market, one of the few things that Landlords can do to enhance their prospects of leasing is improve and upgrade the presentation of their properties.
There are many examples in the area of properties that have not been improved much in the last 20-30 years and with the re-development market being so soft that, re-development is currently non-viable and it may be wise for the cosmetic make over that is so desperately needed.
Some Recent Leasing;
High Road; 258sqm – Leased at $250/sqm
Whyalla Street; 1000sqm Re-leased at $67/sqm
Yampi Way; 148sqm Leased at $155/sqm
High Road office; 88sqm leased at $213/sqm
There has been some encouraging activity from buyers in recent times, as those with established businesses take advantage of the low interest rate environment and weaker prices to secure properties as part of their superannuation strategy.
High Road: A 196sqm showroom sold for $590,000 in Feb 2016, representing $3010/sqm
Gympie Way: A 121sqm office sold for $465,000 in March 2016, representing $3843/sqm
Yampi Way: A 171sqm Office/Showroom/Warehouse sold for $441,000 in March 2015 representing $2579/sqm
We welcome “Bad Backs WA” to Willetton and I am sure they will prosper in the area as we all grow older. Here is some information about what they supply.
“Bad Backs Store to Launch New Store in Willetton
Bad Backs WA has chosen Willetton as the site for their second Perth Store. The new Willetton store makes shopping easier for those with back related ailments or injuries, who reside south of the river and is situated on the corner of Leach Highway and High Road. The store is well positioned, easily accessible and offers plenty of parking, in a highly visible shopping precinct.
It is estimated that 70-90% of people suffer from varying degrees of back and joint pain during their lives. The Bad Backs Store specialises in providing a range of products and services for back and joint pain sufferers. Back and joint pain knows no boundaries whether at work, home or during leisure or sport, relief needs to come with a variety of solutions. The Bad Backs Store offers a single destination for customers to browse and discover the many relief options available for ailments that may impinge on their work or lifestyle related activities.
Some of the core products available from The Bad Backs Store include:
- Ergonomic office chairs
- Sit / stand office desks
- Beds and pillows
- Leg and body wedges
- Zero Gravity recliners
- Braces and supports
- Lumbar rolls and cushions
- Massage chairs
- Tens machines
- Exercise and Inversion products; and
- Much more”