This article is from the Australian Property Journal archive
MELBOURNE’S suburban commercial and industrial property market has clocked up $7.3 million worth of deals.
Crabtrees Real Estate director Gavin Dumas said a rush of sales and leases immediately prior to the Christmas holiday break reflects the growing confidence and future expectations of both owner-occupiers and investors.
One of the biggest deals was recorded for a two level office building with an area of 1,148 sqm at 1350 Ferntree Gully Road Scoresby, which fetched $2.83 million. The property has two tenancies in place and the price paid reflects an indicative return of 7% to the private investor.
Crabtrees Chris McKenzie also sold a large freestanding office warehouse complex at 5-9 Cleeland Road Oakleigh South, to an owner-occupier, a bedding products importer, for $3.55 million.
The warehouse area is 2,809 sqm on a land area of 4,607 sqm, and it is adjoined by two levels of offices of 520 sqm, which are fully fitted with partitioning and services established.
Smaller deals in the south eastern commercial sector included a new office warehouse at 8/889 Wellington Road Rowville leased to Datalink Technologies, which sold to a private superannuation fund for $510,000 on a 6.67% return on a quick settlement.
The building part of an office park development has a total area of 309 sqm inclusive of 88 sqm of offices and 221 sqm of warehouse.
At 14/476 Canterbury Road Forest Hill a modern office suite of 145 sqm inclusive of work stations for 14 staff and a gourmet kitchen has also been purchased by an owner occupier for $430,000. Crabtrees agent Matthew Marenko said that the sale price equals a strong $2965 per sqm for a property in a highly sought location with main road exposure and only limited office opportunity.
And in Richmond another office suite of 128 sqm tenanted by Bentley Partners under a three by three year option lease has also been sold for $510,000 to show a strong 7.38% return or equal to $3,984 per sqm of building area.
The tenant also occupies a neighbouring suite in the relatively new development which currently has only one remaining opportunity, which Marenko is marketing. Suite 9/84 Church Street of 158 sqm is tenanted by the Bayly Group on a five year plus five year option basis at a current passing income of $49,675 with annual CPI increases provided.
Meanwhile two tenants leased the first level let to Berry Street Victoria Inc on a three year plus three year option basis at a current annual rental of $101, 600 net. Whilst the ground floor is leased on a similar three by three basis to the Knox Division of General Practice at a current net rental of $97,240.
Australian Property Journal
