Developers and owner-occupiers can acquire an industrial property gem in the rarely traded O'Connor area located 25 minutes south of Perth for around $700 per sqm.

This price is significantly lower than in comparable industrial regions such as Osborne Park and Balcatta, where prices range from $875 to $1,200 per sqm according to leading commercial property firm Raine & Horne Commercial Western Australia.

Accordingly, Raine & Horne Commercial Western Australia is pleased to invite offers for 10 Keegan Street, O'Connor[i], a substantial property totalling 11,706 sqm. This offering includes two titled lots: 94 Keegan Street (8,271 sqm) and 95 Flindell Street (3,435 sqm).

The property has been a long-term investment for the vendors. With the relocation of the tenant, Tyrecycle, to a new facility in Rockingham, the decision was made by the vendor to sell to a buyer who can fully utilise and potentially redevelop this generous corner landholding.

Mr Anthony Vulinovich, Director of Raine & Horne Commercial WA, highlights the appeal of O'Connor industrial land, noting its affordability compared to northern analogous areas such as Osborne Park and Balcatta. "O'Connor offers exceptional value, providing a cost-effective alternative for investors and businesses looking to expand their operations," says Mr Vulinovich.

"6 Keegan Street, located opposite our listing, sold for $2,328,000 at $688 per sqm early in 2023. The buildings on that site were of zero value due to asbestos," Mr Vulinovich says.

"Although the site is larger than 6 Keegan Street, the market has appreciated by approximately 15-20% since the sale of 6 Keegan, but values are still below those of nearby Osborne Park and Balcatta."

According to data from Raine & Horne Commercial, comparable metro sales value estimates for land ranging from 3,000 sqm to 10,000 sqm are as follows (if the land was available):

• Osborne Park: $1,000 - $1,200 per sqm
• Balcatta: $750 - $875 per sqm
• Malaga: $600 - $700 per sqm
• Bayswater: $575 - $775 per sqm

Mr Vulinovich continued, "But O'Connor has similar demand drivers to Osborne Park and Balcatta, being a hub for service industrial business users and private storage users. This is supported by its logistical connectors and proximity to the affluent and active areas of Fremantle, Bicton, Attadale, North Fremantle, and Mosman Park.

"The O'Connor area has experienced rapid growth in the end sales value of small and large warehouses, which along with comparable but inferior options support a land value for 10 Keegan Street above the $700 per sqm mark.”

Mr Vulinovich expects that the site will sell to a development group or an owner occupier that values the land's proximity to these locales and the utility the location provides.

"The sale process will provide the option to purchase the two lots together as one or the chance to offer the vendor terms to purchase either lot individually," he advised.

Mr Jack Divitini, Sales Agent for Raine & Horne Commercial WA, says, "The market for prime industrial development opportunities has been restricted, especially in tightly held and sought-after locations such as O'Connor.

"Given this, we expect strong local occupier interest and general metro developer interest in the sale; further supporting its appeal is the scale of the land holding and flexibility a corner site provides in terms of development outcomes."

10 Keegan Street is being offered for sale via an "Offers to Purchase" campaign. The campaign closes Friday 21 June 2024 @ 3 PM AWST.

For more information about 10 Keegan Street, O'Conner, call Raine & Horne Commercial WA on 08 6444 7200. 

[i] https://www.rhcommercial.com.au/wa/properties/10-keegan-street-oconnor-6163-western-australia