An Abbotsford office warehouse has sold for a strong price as city fringe assets continue to be in demand from investors and owner-occupiers.

The 15-17 Marine Parade property was sold by Fitzroys agents Brent Glassford and Marco Sandrin for $2.5 million, on a tight yield of 4.8%.

Located 3km from the CBD, in a riverside setting with direct access to the Yarra River and its trail network, the property comprises a 656sqm high-clearance clear span warehouse with a 2-level office featuring a scenic outlook, as well as roller shutter door access and on-site parking, on 750sqm of Industrial 1-zoned land.

It was offered with a 3-year lease to a not-for-profit that included a break clause from March 2027.

Multiple bidders competed for the property, which sold immediately after auction. The purchaser is an investor currently located in close proximity, with an eye to potentially occupying the property in the future.

“Our campaign generated a strong level of interest from investors and potential future owner-occupiers. Melbourne city fringe assets continue to be in high demand from a broad range of buyer types,” Glassford said.

He said the market responded well to the property’s great location and flexible lease arrangement.

“Investors were further attracted to property given the ongoing demand for functional facilities in inner Melbourne locations.

“Owner-occupiers were looking for a new home in an easily accessible location that provided connectivity to the surrounding suburbs and wider Melbourne, and offered quality lifestyle amenity.”

Sandrin noted that as well as being positioned on the Yarra River, the property is close to Victoria Street’s dining and cultural precinct and the broader lifestyle and hospitality amenity of Richmond and Collingwood.

“The property is close to major arterials, including Victoria Street and Hoddle Street, as well as convenient public transport options,” he said.

“Marine Parade has also been transitioning from traditional industrial uses to a more diverse mix of creative and boutique commercial spaces that is drawing more occupiers,” he added.