Low interest rates and high office rents are prompting smaller businesses to take advantage of market and economic conditions and acquire their own premises.
Fitzroys agents Chris Kombi and Tom Fisher have sold a commanding two-storey Victorian terrace for $1.725 million, to an owner occupier looking to relocate from their nearby office.
Kombi and Fisher acted on behalf of a private owner.
Zoned Commercial 1, the 180sqm building on a 144sqm site has been utilised as an office and comprises five principal rooms and amenities, balconies at the front and rear and an internal staircase and has a rear paved courtyard and rear access from Brooke Street. The sale price reflected a land rate of around $12,000 per sqm.
Kombi said the property sold via a competitive campaign that was seamlessly converted from an auction to an Expressions of Interest campaign.
“Despite these unusual times, we are finding there is still solid buyer activity, particularly for properties which are not commonly available,” he said.
“Buyers who are familiar with a particular asset class or sector of the market will always be able to identify great opportunities.”
The property offers potential for a wide range of uses including retail, office, residential or a combination, positioned within one of Melbourne’s most prestigious lifestyle precincts
“Versatile double-storey Victorian terraces are rarely offered to the market, and the property’s location within the highly sought-after Albert Park Village made this an especially unique proposition that attracted strong interest from owner occupiers and renovators,” Kombi said.
He said smaller businesses are finding it more financially viable to owner occupy rather than lease.
“With interest rates at historical lows and rental rates for quality inner-city office space climbing, many tenants are taking the plunge and opting to purchase instead of lease.
“This has proven to be a great wealth creation strategy for those that can afford the transition from tenant to owner occupier.”
Fisher said low vacancies and a lack of new stock have continually pushed up rents throughout the CBD and this has spilled over to neighbouring locations.
“City fringe locations with attractive hospitality and lifestyle amenity and such as Albert Park have become increasingly popular with businesses,” he said.
The property is centrally positioned along Cardigan Place, directly opposite Albert Park Primary School and metres from the popular Bridport Street retail precinct, home to established traders including MECCA, Husk, Seed, Gorman and Flannel, as well as boasting numerous cafes and eateries including Dundas and Fausset, Albert park Deli, Laurent and the recently refurbished Albert Park Hotel.
Also nearby are MSAC, Albert Park Lake, Port Phillip Bay, South Melbourne Market, Gasworks Park and Melbourne’s CBD.
The property is serviced by the Route 1 tram on its doorstep, as well as major arterials including Ferrars Street, Beach Road and City Road, which provides direct access to CityLink. Fisher said easily accessible office properties are consistently receiving strong attention from buyers as more Melburnians week to live, work and play across the inner-city.