Investor confidence in Melbourne's prime industrial sites is picking up as more developers bet on increased demand.

Speculative industrial development is on the rise in Melbourne's south east according to a new CB Richard Ellis review which highlights growing confidence in prime industrial locations. Lepat Pty. Ltd. is leading the charge as it puts the finishing touches on a 11,732 square meter office/warehouse facility at 955 Taylors Road, Dandenong South.

The property is available for sale or lease, is being unveiled following Lepat's success in leasing three smaller, speculatively built office/warehouse projects in neighbouring Lynbrook.

CB Richard Ellis' David Aiello and Stephen Adgemis negotiated the most recent lease, involving a 2,690 square meter office/warehouse at 5 Business Park Drive. The lease involves Vetstar Logistics - a distributor of veterinary healthcare products, pet products, pet
accessories, pet food and pet treats to markets in Australia and New Zealand and the Asia Pacific region.

The company is relocating from smaller premises in Dandenong South. "The lease highlights the current 'flight to quality' trend among industrial occupiers in the south east," Aiello said. "With limited A-grade stock available in the south east, we are now seeing growing confidence among developers to construct new facilities on a speculative basis."

Vetstar has taken a five-year lease over the Business Park Drive facility with the lease has been signed at a rental of US$215,000 per annum. The facility is ideal because it offers access to the major highways of the Western Port Highway and South Gippsland
Highway.