Expanding Owner-Occupiers Drive $2.33m Industrial Auction Sale

Posted on 15th May 2024

Owner-occupiers continue to dominate Melbourne’s sub-$5 million industrial market, with multiple businesses competing at the auction of a versatile inner-north warehouse facility in the latest sale.

Fitzroys' Marco Sandrin and Brent Glassford sold 2-4 French Street, Coburg on behalf of a private owner following a campaign that generated enquiry from a number of owner- occupiers, as well as some investors.

Multiple bidders at the highly competitive auction pushed the price to $2.33 million.

The 900sqm corner office and warehouse facility comprises a brick building with ground- level corporate office, two warehousing areas, and multiple roller doors with on-site parking on a 1,100sqm site zoned Industrial 1.

It was offered partially leased until December 2024, returning $36,000 per annum.

Sandrin said a local owner-occupier with multiple buildings nearby bought the property in an expansion move.

“There were multiple groups that enquired and competed at the auction that were looking to expand, from businesses in Brunswick looking to expand outwards, to the purchaser who is in the immediate area.”

Glassford said the sub-$5 million market has been heavily influenced by owner-occupiers recently.

“Owner-occupiers have been the most active buyers in the market, given the uplift in rentals across the market,” he said.

“This buyer profile is securing existing assets in core industrial locations with great access to the current workforce, major road networks and customer base. In this case, the site offers easy access to the M80 Ring Road and the Tullamarine Freeway and CityLink.

“We continue to see vacant properties, and properties with short weighted average lease expiries attract heated competition amongst owner-occupiers.”