This article is from the Australian Property Journal archive
SMALL and medium businesses are continuing to lease space in the Melbourne CBD and surrounding markets, according to agents Lemon Baxter, who have negotiated a string of deals recently.
Lemon Baxter negotiated the first lease to family-owned furnishing and fabrics company Caprice which has leased a 1,560 sqm warehouse at 31-49 Eastern Rd South Melbourne, next to Yarra Trams.
The building is a potential re-development site and Caprice have committed to $500,000 per annum.
In another deal, London’s renowned dance academy Patrick Studios Australia has entered a 5–year lease in the former PMP photographic studio. The Patrick Studios Australia will relocate from its current Prahran address to the increasingly popular Port Melbourne.
Meanwhile Road safety equipment specialists, Bartco, have leased a 1,000 sqm at Unit 1, Westside Avenue in Port Melbourne.
The biggest deal was signed by the Commonwealth Bank, which renewed their lease for 3,500 sqm at 105 Camberwell Rd Hawthorn East.
Director Paul O’Sullivan said this is a reflection of the major deals and supply and demand in the outer suburbs.
“Recent research from NAB found Victoria will lead the pack on all the key criteria in 2011 – capital value growth, rental growth, office demand and market tightness.
“During the 12 months to March 2012, capital values are forecast to rise by 3.5%, rental growth to climb 4.6% and vacancies to tighten to 4.5% from current level of 5.3%,” Sullivan said.
Australian Property Journal
