Sourcing a new industrial facility for an expanding global corporation
JLL helped Rexnord Corporation navigate a real estate supply shortage in Western Australia by designing and building a high-quality warehouse to accommodate rapid growth
Spotlight
Industrial & logistics
Time
10-year pre-lease
Location
Malaga, WA
Challenge
Rexnord Corporation, which is a supplier to mining and resources businesses, was looking to expand and upgrade its industrial real estate to meet the demands of an improving mining sector in Western Australia.
JLL was enlisted to find an appropriate facility for Rexnord, however an extensive property search confirmed that due to a lack of existing industrial stock in WA a different solution was needed.
A more viable option would be to design and construct its own facility that could accommodate Rexnord’s specialised requirements, including cranes and power supply.
Approach
We leveraged our relationships with Perth’s major developers to identify a developer that could deliver the type of facility our client wanted. Subsequently, we engaged with a valued landowner client to secure a suitable development site in Malaga, 11 kilometres north of Perth centre.
Our team worked with both Rexnord and the landowner to refine the requirements, finalise the design and negotiate commercial terms for the property, resulting in both parties entering into a long-term agreement.
Result
The increasing activity in WA’s mining and resources industry is leading to a more competitive and supply-constrained industrial real estate sector. But it is also giving businesses the confidence to take a long-term view of their accommodation options.
By committing to a 10-year pre-lease, Rexnord has been able to successfully navigate the dynamics of the WA market, leading to a high quality facility from which to operate and take advantage of the business opportunities ahead.
