Investors and owner occupiers are expected to show strong interest in a Camberwell office building that has come to the market during a time in which available quality, well-located commercial stock is rare.
Chris James and David Bourke of Fitzroys have been appointed to sell the high-exposure asset at 1186 Toorak Road in Melbourne’s high-performing inner eastern suburbs market on behalf of a private owner.
The standalone two-level building of 882sqm with basement features 28 car parking spaces and is on a corner site of 737sqm with a high-exposure 34.5m frontage to lively Toorak Road. Zoned Commercial 1 and to be offered with a short-term overholding lease, the property offers potential to add additional levels to the building.
Expectations are of circa $6 million. An Expressions of Interest campaign will close Tuesday, 2 June.
James said there has been limited quality commercial stock coming to the market in recent times.
“Recent sales campaigns across Melbourne’s city fringe and suburban commercial markets have been fiercely contested, demonstrating there is still large amount of capital actively pursuing quality assets.
“Vendors are taking note that there is a high level of pent-up demand for well-located property.”
Fitzroys recently sold a high-profile Wellington Road office building in Mulgrave for $6.6 million, for which five offers were put forward, as well as the Commonwealth Bank branch site on nearby Burke Road for $12.06 million that featured seven underbidders, highlighting the confidence investors have in Camberwell and the inner-east.
The Toorak Road property is close to local icon Leo’s Supermarket and is within an active and highly accessible retail and commercial precinct, serviced by the Route 75 tram, both Hartwell and Burwood train stations and the Anniversary Trail nearby, while Toorak Road offers easy access to Camberwell Junction and major arterials including the the Monash Freeway/CityLink.
Bourke said investors, owner occupiers and value-add players have sharpened their focus on inner suburban assets as the CBD office market remains remarkably tight.
“The inner-east’s population growth, accessibility and quality lifestyle amenity has attracted the market’s attention, with strong transaction results and tenant demand witnessed in Camberwell, Kew and Hawthorn in recent times,” Bourke said.
“Accessibility and lifestyle amenity have become key drivers for owner occupiers and businesses looking for new locations, and savvy investors are looking for opportunities that present solid future growth prospects.”
Bourke said Fitzroys’ successful sales campaign of a prominent Bay Street, Port Melbourne building displayed the strong appetite of owner occupiers and value-add players for quality office properties beyond the CBD. The 226 Bay Street property sold vacant for $3.705 million last month at a fiercely contested auction.
“With interest rates at historic lows and rental rates for quality office space still on the increase, a growing number of tenants are finding it more financially viable to owner occupy rather than lease,” he said.