Melbourne’s sub-$5 million industrial market is off to a hot start in 2024, with one of the market sector’s first auctions for the year netting a strong result.

Fitzroys’ Brent Glassford and Lewis Waddell sold 15 Coolstore Road, Croydon for $1.44 million, on a tight 4.8% yield.

The 550sqm building is on an 831sqm Industrial 1 zoned site and is occupied by national brand Goodyear Autocare on a new five-year lease.

Glassford said the campaign generated more than 60 enquiries, culminating in multiple bidders on auction day and the property selling under the hammer.

“The quality of tenancy covenant was a huge attraction. Longstanding tenant Goodyear is one of the world’s largest tyre companies and it had just signed up for another five years, showing their confidence in the property and the location within Melbourne’s eastern suburbs,” he said.

The property is situated near the Main Street, Croydon shopping precinct and close to the new Croydon Station transport hub, which is undergoing a full redevelopment set to open in 2024. It also offers excellent transport linkages via Eastlink and 1km* from Maroondah Highway.

Glassford added, “The sub-$5 million market has been heavily influenced by owner-occupiers in recent months, but this campaign demonstrated the ongoing strength and depth of demand of the investment market when clear-cut opportunities present themselves.

“The prospect of falling interest rates later in the year is expected to result in yet more buyers entering the market over the course of 2024.”

He said that has become more likely given Australian Bureau of Statistics data has shown that inflation has continued to fall in recent months back towards the Reserve Bank of Australia’s target range.