Weekly Wrap

Fitzroys Weekly Wrap - 19th March 2021

Posted on 19th March 2021

000 Retail 05

274A, B & C, Neerim Road, Carnegie
An investor bought the vacant 392sqm property covering 3 titles for $2.56 million. It is on the ground floor of a 5-level residential project developed by Jonathan Hallinan’s BPM.

13 Paisley Street, Footscray

The vacant double-storey 245sqm building sold for $1.2 million. It is on a 183sqm site with direct access to a council car park at the rear.

Ground Floor, 109 Auburn Road, Hawthorn

A florist signed a 4 3-year lease at $38,750pa plus GST for the ground space, which has a 64sqm retail area and 45sqm of rear offices.

51s Hammersley Drive, Clyde North

Home & Party World leased the 1,023sqm showroom within MAB Corporation’s Clyde North Lifestyle Centre, where rents range from $210 to $260/sqm net.

000 Offices 05

431 Canterbury Road, Surrey Hills
A local financial group bought the 530sqm building, with a further 270sqm basement space, for $2.8 million. It has a 2 self-contained levels and is on a 530sqm site zoned Commercial 2 with a 10m frontage.

188-200 Gertrude Street, Fitzroy

Architect Sean Godsell leased the 46sqm level 1 studio for 3 years at $26,000pa net, and Harbour Supply Co signed a 5 5-year lease at $105,000pa, adding a bricks and mortar presence to its online business. The deals take the recently-repositioned 3-level Victorian building to full occupation.

000Industrial 05

142-146 Fairbank Road, Clayton South
A developer paid more than $11 million for the 18,150sqm corner site with a 9,391sqm warehouse.

Unit 3, 119-123 Adderley Street, West Melbourne

An owner occupier bought the vacant refurbished 721sqm office and warehouse for $3.4 million. It is on a 536sqm site zoned Mixed Use and with 6 parking spaces.

53 Renver Road, Clayton

A local owner occupier for $1.405 million for the 500sqm office and warehouse on a 780sqm site, with a short-term tenancy in place.

7B Roper Street, Moorabbin

Formerly used as a bar and function centre, the vacant 280qsm brick unit sold for $600,000 plus GST.

8/1880 Hume Highway Campbellfield

ASX-listed Coventry Group leased the 600sqm showroom and warehouse building at $55,000pa net.

000 Specialised 05

388 Riversdale Road, Hawthorn East
A local medical specialist paid $1.5 million for the vacant 120sqm building on a 339sqm site. Zoned Residential Growth Zone 1, it had been occupied by a psychologist for over 20 years, and includes 3 consulting room, reception, break-out area and 5 on-site car spaces.

315 Wattletree Road, Malvern East

Armadale Psychology is expanding to the recently updated Victorian building. It signed a 5-year lease at $51,000pa plus outgoings and GST.

000 Talking Points 05

Hawthorn Office Market One to Watch in 2021
Hawthorn is emerging as a Melbourne office market to watch in 2021, well-placed to attract tenants due to more flexible working arrangements and heightened demand for inner-suburban locations.

Fitzroys Associate Stephen Land has negotiated 3 leases in the suburb, including 2 deals on level 1 of 104 Burwood Road, and another at 313 Burwood Road.

At 104 Burwood Road, the 130sqm Suite 1 was leased on a 3 3-year term to Keen to Clean Group, which were moving to Hawthorn in order to be in a more central location.

Suite 2 was leased to Stamford Lawyers, who were relocating in the other direction – out of the CBD. The 2+2+2 year lease for 140sqm was struck at $30,000 per annum plus GST.

Land said the in situ fit-out and workstations will be retained by the tenant, with the plug- and-play nature of the space quite desirable.

“There were very high levels of enquiry for these offices given the limited size offering in the area and the affordable rental level.”

Land said the shorter terms of the leases and multiple options were representative of tenants across Melbourne, with the fluid COVID situation meaning smaller tenants are committing to shorter-term deals than they previously would have taken up.

He said there is going to be demand and supply across all parts of the Melbourne office market, with movements going both ways between the CBD and the inner-suburbs.

“There are plenty of businesses seeking a move to city fringe and inner suburban locations to be closer to their home, making it easier to access the workplace and collaborate with colleagues in-person during a period of more flexible working hours and arrangements.

“For some, a move to a more central location may be the most appropriate course.

“Hawthorn in particular has seen strong enquiry as an inner-city suburb that is well- serviced by public transport, easily accessible via car with major arterial roads nearby, and offering more competitive rents as opposed to suburbs right on the city fringe.”

Land has also leased 380sqm on part of level 1 at 313 Burwood Road to fuel systems engineers Leighton O’Brien, who were moving from slightly smaller offices in the neighbouring Hawthorn East, preferring to optimise their position in the popular area.

The 5 5-year lease was struck at $218,983 per annum plus GST, which Land said demonstrated that established companies that haven’t been so heavily impacted by COVID are still comfortable with longer leases.

He said the office is situated in a prime Burwood Road position near the corner of the vibrant Glenferrie Road retail and hospitality strip, and opposite Axel Coffee Roasters.

“Businesses and workers are favouring highly accessible location with food and beverage and lifestyle amenity,” he said.

The premises were previously occupied by Generic Partners who were bought out by Arrotex Pharmaceuticals and subsequently amalgamated into their Cremorne offices.

“We received interested from a range of local tenants as well as tenants considering relocating from the CBD,” Land said.

“Leighton O’Brien will utilise the existing fit-out in situ, which comprises 4 glass office/ meeting rooms and a large boardroom. The quality existing fit-out in situ was desirable from all prospective enquiry and we have seen greater interest in fully fitted offices following COVID-19 changes.

“Fitted spaces continue to be sought after as many tenants want an easier move, and often one that is more cost-effective.

“The office contained a large private balcony space which we understand differentiated this building from others and ultimately helped in securing the tenant.”

Ample on-site car parking was available and Leighton O’Brien opted for 20 spaces. Land said this is another desirable aspect for prospective tenants within the CBD fringe office markets as some remain hesitant about a return to public transport.

This is the 3rd lease between 300sqm and 400sqm Land has negotiated in the building over the past year, with deals struck for spaces on each of levels 1, 2 and 3.

Fuse Recruitment are also relocating to the building from a smaller office nearby at 328 Burwood Road, also preferring to remain in the immediate area due to its immediate proximity to Glenferrie Road’s retail amenity, and public transport links including short walking distance to Glenferrie station.

Meanwhile, internationally-acclaimed immersive media studio Phoria has doubled its office space in Fitzroy to become the sole tenant of the heritage-listed former Salvation Army Hall building.

Land negotiated the 6-year lease plus an option for Level 1, 297 Napier Street at $66,000 per annum plus GST on behalf of a private investor.

Already the occupant of the building’s ground level, Phoria took the 330sqm space on level 1, extending its footprint to 660sqm across both levels. Fitzroys leased the ground floor to Phoria 3 years ago.

The firm develops immersive media through virtual reality and 360-degree film, and has designed, built and launched multiple virtual, augmented and mixed reality platforms.

Phoria’s clients include ANZ, REA Group, City of Melbourne, Telstra and University of Melbourne, and it has worked on projects for Twitter and the ABC. It has recently created the virtual reality nature documentary series Ecosphere in partnership with Facebook’s Oculus, the World Wide Fund for Nature (WWF) and Silverback Films, as well as augmented reality film Rewild Our Planet, in partnership with Netflix, the WWF and Silverback Films, and featuring Sir David Attenborough. Both were released in 2020.

Land said lifestyle considerations are playing an increasingly prominent role for businesses and those looking for home/office locations.

“The property is located close to Brunswick Street, near the corner of Johnston Street, as well as Smith Street, Collingwood, both among Melbourne’s most eclectic lifestyle and hospitality strips,” he said.

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. Terms/Privacy © Copyright 2021 Fitzroys.