Weekly Wrap

Fitzroys Weekly Wrap - 5th May 2023

Posted on 05th May 2023

56 Slater Parade, Keilor East
Offered with a month-to-month tenancy, the 400sqm office and warehouse on a 571sqm Industrial 1-zoned site sold for $1.15 million.

Building 7, 11 Mary Street, Blackburn

A local investor bought the vacant 450sqm warehouse unit for $1.615 million

2/56 Baretta Road, Ravenhall

The 443sqm office and warehouse with 6 car parks sold for $1.4 million. It has a 3-year lease from December 2021 returning $60,000pa plus outgoings and GST, and is used as cricket nets with a space for cricket gear retailing.

11-13 Duke Street, Abbotsford

A residential builder signed a 5-year lease for the single-level 315sqm building at $50,000pa plus GST.

5/30 Triholm Avenue, Laverton

A private investor bought the 235sqm warehouse with 4 car parks for $610,000 on a 3.7% yield. It is leased to R&M Fencing until January 2025.

63 Maitland Street, Glen Iris
An owner-occupier paid $1.218 million for the vacant 148sqm office.

Unit 9, 335 Ascot Vale Road, Moonee Ponds

Green Cross Healthcare leased the 132sqm self-contained office on a 5+5-year term at $50,000pa.

Suite 1112, 9 Yarra Street, South Yarra

An expanding physiotherapy business leased the 63sqm suite for 3 years plus options at $28,000pa.

Cnr Kororoit Creek Road & Hygeia Avenue, Williamstown
The 6,999sqm under-construction BP petrol station and McDonald’s outlet site, within Time & Place’s Williams Point development, sold for $7.5 million.

340-344 Melbourne Road, North Geelong

The 5,600sqm vacant corner site formerly home to Ray’s Outdoors sold for $5.8 million. It comprises 3,750sqm of buildings plus 1,000sqm of mezzanine showroom and offices.

89 Gray Street, Hamilton

The 2-storey 535sqm building on a 1,027sqm corner site sold for $1.315 million, on a 6.06% yield. ASX-listed Elders has a renewed lease to 2025 with options to 2031 that brings $79,667pa plus GST.

Level 1, 23-27 Railway Parade, Glen Waverley

A CBD-based operator leased the 520sqm former karaoke bar at $240,000pa net plus outgoings and GST for a food and beverage offering.

403-405 Mitcham Road, Mitcham
The 1,397sqm site sold for $2.95 million, with a permit for a 98-place child care centre.

467 Upper Heidelberg Road, Heidelberg Heights
The 75sqm building with multiple consulting rooms and occupied long-term by a physiotherapy, on an 877sqm site, sold for $1.2 million. The current lease runs to July and returns $27,500pa.

Land Rates Continue to Rise in Northern Melbourne’s Logistical Hotspot

Demand for industrial-zoned land in Northern Melbourne’s logistical hotspot is continuing to intensify, with developers and owner-occupiers competing for opportunities in the highly sought-after industrial pocket.

A local developer has paid $4.427 million for a 3,850sqm block, permitted for a 2,444sqm office and warehouse facility.

Fitzroys’ Brent Glassford and Marco Sandrin sold 25 Longford Road, Epping in conjunction with John Georgiou of NAI Harcourts on behalf of a private family.

The agents achieved a land rate of $1,150/sqm on the transaction.

“Recent comparable industrial land development sales in the suburbs suggest that demand for industrial-zoned land is only intensifying,” Glassford said.

“Opportunities to secure a sizeable block of industrial land within a supply-constrained area are incredibly rare. Melbourne industrial land supply is at a historic low.”

Sandrin said the buyer of 25 Longford Road has developed similar industrial projects to the permitted plans for the site and will build accordingly.

“They have other holdings in the area and they’ve seen and experienced the huge demand from tenants in Epping for themselves,” he said.

The facility will comprise a 2,062sqm warehouse with roller shutter doors, a 382sqm corporate office over two levels, large canopy, dual crossovers and on-site staff parking.

“Construction costs, labour shortages and barriers to funding have made developing some projects more difficult, but the huge demand for quality industrial facilities, rental prospects and ongoing growth of Epping make this an attractive project to take on,” Sandrin said.

Sandrin said the site offers strong rental prospects and growth potential in the coming years. Fitzroys is forecasting further rental growth in Melbourne’s northern industrial market amid overwhelming demand for high-quality in well-connected locations to cater to higher inventory and storage space demands and last-mile efficiencies.

“This site presented an opportunity to develop a corporate facility close to Oherns Road, Cooper Street and the Hume Freeway, and offers excellent access to the M80 Ring Road, opening up access to a large proportion of Melbourne’s population and Melbourne Airport,” Glassford said.

Nearby are the Pacific Epping regional shopping centre, the Melbourne Wholesale Fruit Vegetable & Flower Market, the Northern Hospital, Epping Private, Melbourne Polytechnic, the Mantra Hotel, Costco Supermarket and a number of major brands and showrooms, as well as a number of new major industrial estates. The suburb pipeline includes Riverlee’s $2 billion mixed-use development at the former Epping Quarry, and Sandhurst Retail and Logistics’ $500 million, 140haindustrial estate.

Fitzroys’ Chris Kombi Named Top Agent at AREA Awards
Fitzroys is incredibly proud that the agency’s Chris Kombi has won the Top Commercial Sales Agent – VIC Award at the Annual REA Excellence Awards.

“This award is great recognition for the work Chris puts into his role. His driven attitude, professionalism and focused sales campaigns consistently lead to fantastic outcomes for his clients,” said Fitzroys Director David Bourke.

“Chris has delivered these results over a long time right across Melbourne. His work is a reflection of the team at Fitzroys, which has continued to grow and evolve across multiple asset classes and represents a range of property participants, and provides a leading commercial real estate services experience.”

“We are incredibly proud of Chris and thrilled for him that he has received this recognition.”

$25m for Neighbourhood Shopping Centre
A buyer from mainland China has paid around $25 million for Village Lakeside shopping centre in Pakenham.

The sale price reflected a yield of 5.5%.

The Coles-anchored 3,654sqm centre has 10 discretionary shops and returns around $1.3 million pa.

The sale is one of the 1st neighbourhood shopping centre sales in Victoria this year and follows IP Generation recently buying Craigieburn Central and adjoining land for $300 million in the state’s biggest retail transaction since 2018.

Lygon Lodge Sells for $17.3m
An investor has bought the vacant serviced apartment complex Lygon Lodge for $17.3 million.

The 60-room hotel at 220-228 Lygon Street has 1,610sqm of floor space and also comprises 2 ground floor restaurants. It is located on a 1,019sqm Commercial 1-zoned site between Grattan and Queensberry streets.

The new owner plans to continue running the property as a hotel.

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 2023 Fitzroys.