Melbourne’s prime shopping strip market is set for its next test in 2024, with a corner property in the “Paris end” of Toorak Road, South Yarra going to auction in April.
Fitzroys’ Lewis Waddell, Ben Liu and David Bourke are marketing 17 Toorak Road on behalf of a private owner, with the auction set for Friday, 12th April at 2pm.
Price expectations are of circa $2 million.
The property comprises a single-level building that is fully serviced for food and beverage use with a commercial kitchen, occupied by La Parisienne Café and Charcuterie on a lease extending to April 2029.
It is positioned in a prime South Yarra location within an established hospitality precinct, just a few doors down from Melbourne icon France Soir, and close to notable eateries including Bar Carolina, Tetto, Cosi, and many more.
The 150sqm corner site offers side and rear access via a laneway zoned Activity Centre - Schedule 1, offering value-add and development opportunities.
“Investors and land bankers have the very rare opportunity to secure a dual-fronted prime Toorak Road site with favourable Activity Centre zoning, and explore their options for future use of a site in one of Melbourne’s most established and affluent catchments, while enjoying a solid income stream from a quality tenant,” Waddell said.
The offering comes to market on the back of Fitzroys selling more than $16 million worth of prime shopping strip retail assets on Toorak Road in just a few months. The most recent was the $5.15 million sale of 91-93 Toorak Road, South Yarra, on a very sharp passing net yield of 1.8%. The 415sqm building is occupied by a La Porchetta restaurant and an optometrist.
“Prime assets in Melbourne’s shopping strips offer excellent investment credentials. Strips are experiencing a real period of renewal now. Vacancies are at a long-term low as Melburnians spend more time than ever at their local villages, supporting trade, while developments on and around the strips are underpinning future trade prospects,” Waddell said.
“The property is located close to the Botanical gardens and Domain Hill residential enclave and is also well positioned to the South Yarra train station and is surrounded by many key developments that will continue to make South Yarra more dynamic. These include the ongoing development of the nearby Forrest Hill precinct, as well as Oreana’s $250 million redevelopment of South Yarra Square, V-Leader’s $90 million Hotel Claremont project and the $1.5 billion overhaul of the Jam Factory “ Liu Said.
According to Fitzroys’ latest Walk the Strip report, Toorak Road, South Yarra vacancies have nearly halved since 2021, from 10.1% down to 5.6% in 2023.