News

Circa $5m Expected For Boutique Richmond Standalone Building

Posted on 06th July 2023

Investors, owner-occupiers and land-banking developers have the opportunity to acquire an office building on an important site within a fast-growing section of the hugely popular Richmond market.

Fitzroys’ David Bourke, Lewis Waddell and Shane Mills are marketing 255 Mary Street, Richmond on behalf of a local family via Expressions of Interest closing Wednesday, 26th July at 3pm.

Expectations are of circa $5 million.

The property comprises a three-level, freehold office building with 708sqm of lettable area, with an external balcony offering panoramic CBD views, plus 20 secure undercover car parks, on a corner parcel of 401sqm with prized Commercial 1 zoning. It offers excellent future development upside, with a preferred maximum building height of up to 28 metres (STPA), given the underlying land component’s Design and Development Overlay 27 (DDO27).

“This is a huge opportunity for investors, owner-occupiers and future developers to get into what’s a fast-emerging section within the hugely popular Richmond and Cremorne market,” Bourke said.

“We’re expecting interest from tech and start-up companies looking to get into arguably Australia’s hottest city fringe office market, alongside the likes of Seek, REA Group, Domain, Disney, Uber and Tesla. Investors can purchase with the comfort that there is ongoing huge demand for the Richmond and Cremorne market and very healthy rent levels,” Waddell said.

“Businesses are wanting to attract the best talent and more and more Melburnians are looking to live, work and play in highly accessible areas with quality hospitality offerings.

“Landbankers and developers can assess their options for the site, which has sought-after Commercial 1 zoning, and they can likely lease out the property and secure a strong income while assessing their options for the site, which is in a fast-growing section of the Richmond and Cremorne market.”

Next door, at 300-304 Swan Street, Fortis is planning an eight-storey building; nearby at 480 Swan Street Charter Hall is developing Australia Post’s new Melbourne headquarters, and the Agosta family has plans for a $350 million, 14-storey tower with 27,000sqm of space next door at 484-488 Swan Street, while Salta and Abacus Property Group have recently completed campus-style Industry Lanes project at 459 Church Street.

“The Richmond and Cremorne market has undergone significant transformation over recent years, becoming Melbourne’s own Silicon Valley, and is clearly continuing to grow. The hospitality offering and industrial characteristics sparked commercial development and attracted start-ups and tech firms, and businesses and developers continue to flock to the area,” Mills said.

“The site is in the prized Swan Street precinct, and this market is perhaps the pre-eminent example of an office market growing around one of Melbourne’s shopping strips.”

According to Fitzroys’ Walk the Strip report, Swan Street is home to one of the lowest vacancy rates in Melbourne and among the highest proportions of food and beverage of any strip. Cafés and eateries service the worker population of the booming Richmond and Cremorne office markets during the day, before the nightlife offering and sporting events which draw visitors from across Melbourne. Swan Street’s hospitality offering is underpinned by iconic venues and bars such as The Corner Hotel and The Precinct Hotel, plus a multitude of cafés and eateries.