Weekly Wrap

Fitzroys Weekly Wrap - 2nd August 2019

Posted on 02nd August 2019

389 Camberwell Road, Camberwell
An owner occupier purchased the vacant, dual-fronted commercial property for $550,000, at a land rate of around $8,000/sqm.

Shop 1, 337-341 Sydney Road, Brunswick
The owners of Vale Bar & Eatery in Ascot Vale signed a 5+5+5+5-year lease at $112,500pa to open a new café and restaurant, with capacity of 95 patrons, within the Cumberland Hotel building.

140 Cotham Road, Kew
A private interstate buyer paid $1.23 million for the boxing and training facility on the ground floor of the INQU Apartment complex at a 5.5% yield. The 140sqm space is leased to 12 Round Fitness on a 7-year deal with options.

309 High Street, Kew
Interests associated with Ivanhoe’s Chien Wen Wine Bar will open a new venture at the 2-level, 250sqm building after signing a 7-year lease at $86,000pa net.

589 Chapel Street, South Yarra
New venue Jumi’s Café will start trading from the 50sqm space in the prime section of the strip after signing a 5+5-year lease at $50,000pa net.

Shop 5, Craigieburn Plaza, Craigieburn
Universal Real Estate signed a 3+3+3-year lease over the 86sqm space at $50,000pa.

68 Oxford Street, Collingwood
An owner occupier bought the 475sqm half-floor strata office, within the historic Foy & Gibson building, for $3.55 million.

276 Flinders Street, Melbourne
Online advertising company My Adbox inked a 6-year lease over the 400sqm level 14 office at $650/sqm.

420-426 Mount Dandenong Road, Kilsyth
A high net worth investor purchased the 2.03ha site for more than $7 million at a net yield of 5.6%. Long-term tenant Caprice Paper occupies the office, warehouse and factory property.

13 Redland Drive, Mitcham
The office and warehouse building is leased to security firm Gemalto, a subsidiary of Thales, and sold for $3.06 million at a 4.98% yield.

1-4/22 Graham Road, Clayton South
4 units of a combined 751sqm, on a 1,745sqm site, sold in one line for $1.324 million. Each unit has a new 3-year lease for a total return of $91,200pa.

2-6 William Angliss Drive, Laverton North
Consystex leased the office and warehouse at $325,000pa plus outgoings and GST.

15 Hercules Street, Tullamarine
Mechanics DEOL Australia Pty Ltd inked a 2+2+2-year lease over the 697sqm warehouse at $58,000pa.

Unit 3, 134 Freight Drive, Somerton
JJ Cabinet Design leased the office and warehouse building at $37,000pa plus GST on a 2+2+2-year term.

56 Kingloch Parade, Wantirna
Oz Property Group bought the former Wantirna Heights primary school site from the State Government for $9.709 million, and intends to build a $50 million medium-density community on the 12,540sqm property.

298 Lygon Street, Brunswick East

A local purchaser paid $1,900,999 for the vacant 420sqm warehouse.

Melbourne Retains Lowest CBD Office Vacancy Rate
Ongoing strong demand and steady population growth have kept vacancies in Melbourne’s city office market at a sharp 3.3%, still the lowest of any CBD in the country, according to the latest figures from the Property Council of Australia.

Strong pre-commitment levels are expected to soak up much of the massive 650,000sqm of stock that will be introduced to the city market by 2023.

BIS Oxford Economics Prime has forecast rents to rise a further 30% to 40% over the next five years, driven by pre-commitments and continuous demand.

Meanwhile, East Melbourne is again the tightest non-CBD office market, down to just 2% over the first half of 2019.

Fabulous Inner-City Freehold Offers Enormous Upside
A rare chance to acquire a substantial Smith Street freehold has been put to the
market through Mark Talbot and Lewis Waddell of Fitzroys, in conjunction with MMJ Real Estate.

On a 434sqm site near the iconic intersection of Smith Street and Gertrude Street, the quintessential inner-north property at 95-97 Smith Street is leased to popular bars Mr Wow’s Emporium and Pixel Alley over two levels, and returns $184,000pa net plus GST with scope for further rental growth.

The property is zoned Commercial 1 and is within one Melbourne’s most sought-after hospitality and lifestyle precincts, featuring highly regarded bars and eateries, supported by a rapidly developing apartment and commercial office population.

Disclosure: The weekly Fitzroys Property Wrap is for information only on transactions in the Melbourne property market. Fitzroys provides this information as a public service. We are not purporting that all sales and leases within this report were transacted by Fitzroys. Terms/Privacy © Copyright 2019 Fitzroys.