Weekly Wrap

Fitzroys Weekly Wrap - 20th July 2018

Posted on 20th July 2018

Wwswan 17

Retail Sale, 257 Spring Street, Reservoir
A local investor paid $2.52 million for the dual-tenanted property, leased to Australian Hearing Services and Shine Lawyers and returning $154,000pa.

Retail Lease, 424 Smith Street, Collingwood
Digital firm 24 Digital is moving into the former Brooks Sportswear factory outlet of 435sqm, with plans to convert the space into office, after agreeing to a lease at $160,000pa.

Retail Lease, 29 Grattan Street, Carlton
The operators of Sweetwater Inn, Leonard’s House of Love and Ramblr have leased the corner site for their new venture, Leonardo’s Pizza Palace, from a local investor. They signed an eight-year deal with two four-year options at a net figure of $160,000pa plus GST.

Retail Lease, Ground Floor, 1033 High Street, Armadale
High-end women’s fashion label Megan Park has leased the 85sqm shop at $75,000pa, on the ground level of a three-storey building of 345sqm with first-floor office space and a two-bedroom apartment on the second floor.

Office Sale, 324 Auburn Road, Hawthorn
The converted double-storey brick building of 150 sqm sold under the hammer for $1.295 million. It is on a 179 sqm site with four car spaces and is leased to two tenants, trading at a 3.9% yield.

Office Lease, 112 Trenerry Crescent, Abbotsford
Mustangs TV is the latest production company to take up a short-term lease at the commercial building, signing up for 1,000sqm over 4.5 months at $10,000pcm. Film and TV production companies have been taking up the fully-fitted space over the past 24 months on shorter term deals as they film nearby.

Office Lease, 19 Corporate Drive, Moorabbin
The Brotherhood of St Laurence will consolidate two of its office locations into the recently upgraded 563sqm space, and the Australian Electoral Commission has taken 380sqm in the building, located in Pellicano’s Parkview Estate. Both will pay $310 per sqm.

Office Lease, 24 Janine Street. Scoresby
Design, management and manufacturing group iCreateRetail Solutions inked a five-year lease with a five-year option over the 1,419 sqm office and warehouse property at $130,548pa, or $92/sqm.

Land/Development Sale, 160 Whitehorse Road, Balwyn
Pace Development Group acquired the 8,767sqm property for $23.85 million, the site of the $150 million Blackburn Place apartment development. It will comprise 263 apartments and 3,633sqm of ground-level commercial and retail space across four buildings.

Industrial Sale 17 Whitfield Boulevard, Cranbourne West
Malaysia-listed Poh Huat Resources Holdings has made its second purchase in the south-eastern suburbs. The group paid $4.95 million to JSNL Investment Pty Ltd for the facility, which has a 2,912 sqm warehouse and 300 sqm office and showroom space, and adds to the group’s industrial property holdings in Dandenong South.

Industrial Sale, 13-15 Trawalla Avenue, Thomastown
An owner occupier picked up the 4,050 sqm site for $2.31 million, with a permit for a seven-day waste transfer station. Currently, the site comprises a 2,280 sqm warehouse with office space and 30 on-site parking spaces.

Fitzroys’ Walk the Strip - Volume 2: Melbourne’s iconic retail strips have continued to thrive and reinforce their position as the heartbeat of their local communities, with new research from Fitzroys showing they appear to have moved through the worst of the retail industry upheaval. 

Fitzroys’ Walk the Strip - Volume 2 report shows vacancies have tightened across most of Melbourne’s key retail strips over the 12 months to June, as they evolve and adapt to a changing retail environment, and Melbourne’s nation-leading population growth brings medium and high-density residential developments to their immediate catchments. 

Fitzroys Director, David Bourke, said strip centres would always provide an environment that people want to shop and find community in. 

“Strip centres will continue to be an important presence in our communities, hosting a strong quality and mix of operators in a focal point for a neighbourhood or catchment.” 

He said strip centres have been adjusting and re-mixing to take into account the introduction of Amazon and evolutions in online retailing over the last few years. 

“Much of the change throughout the strips has already taken place in anticipation of Amazon’s introduction, and its impact on the strips will be more tempered than the build-up suggested.”

According to Fitzroys research, evergreen Church Street, Brighton was one of the strongest performers from June 2017 to June 2018, with its vacancy rate tightening from 2.7% to 1.3%, while Ivanhoe’s Upper Heidelberg Road was steady at a tight 0.8%.

High Street, Armadale vacancies were crunched from 7.9% to 4.1%; and Burke Road, Camberwell from 6.0% to 2.4%.

Across the inner-north, Brunswick Street, Fitzroy came in from 8.0% to 3.8%; Sydney Road, between Victoria Street and Brunswick Road, was halved to 3.0% and between Moreland Road and Victoria Street firmed from 10.2% to 6.5%.

Bourke said strip centres have seen a growing proportion of shops being used for service uses, with the number of new cafés, bars and restaurants well-documented. 

“The proliferation of delivery services such as Uber Eats, Menulog and Deliveroo represents a growing proportion of food and beverage turnover, and some operators are finding a secondary location that is sufficient for their needs as there is less reliance on passing trade,” he said. 

“In addition to this there are a huge number of personal care businesses such as hairdressers, beauticians, skin care clinics, masseurs and gyms opening in the strips, into locations they previously wouldn’t have considered.”

Walk the Strip – Volume 2 will be available from next week.

Disclosure: The weekly Fitzroys Property Wrap is for information only on transactions in the Melbourne property market. Fitzroys provides this information as a public service. We are not purporting that all sales and leases within this report were transacted by Fitzroys.