MARKET WRAP
SALES
A two-storey terrace office at 223 Park Street has soared in value by more than one third over two years. The property sold for $1.6 million in 2015 before selling again recently to an overseas investor for $2,528,500, a 36 per cent rise and land rate of $10,579 per sq m. "We believe this result should be extremely encouraging for owners in South Melbourne and surrounding suburbs, particularly given the depth of local and offshore bidding above the reserve price," said CBRE's Rorey James, who handled the sale with Tom Tuxworth, Nick Lower and Liam Gostencnik.
South Yarra
A shop in Chapel Street opposite the Jam Factory has sold for $2.72 million at a building rate of $26,150 per sq m and land rate of $18,500 per sq m. Fitzroy's James Lockwood and Mark Talbot said it was the first time in 35 years the property, leased to national retailer Hairhouse Warehouse, was offered to the market.
Burwood
A private investor paid $1.05 million for a modern office warehouse at 28/25-37 Huntingdale Road. The 430sq m building, leased until December 2018, sold on a yield of 6 per cent. Knight Frank's Stuart Gill and Dean Kimitsis brokered the off market deal.
Southbank
Six shops shops in a row on the ground floor of the Guild development totaling 1080 square metres with a new fit-out have sold for $3.4 million. The property was fully leased to the City of Melbourne at a net annual rental of $168,105 on a five-year term with options. The price was well above initial expectations of about $2.8 million and returned a sharp yield of 4.94 per cent, Savills Australia's Clinton Baxter, Jesse Radisich and Benson Zhou said.
Glen Waverley
Industrial units in a tightly held area in Melbourne's south-east have sold above their reserve at auction. Ray White Commercial Oakleigh's Joshua Colosimo and Paul Rizzo said the warehouse/office units at 3 and 4/2 Aristoc Road sold to a local developer for $1.006 million.
Mornington
An impending move by East Mornington Veterinary Hospital to larger premises sparked the sale of its current premises at 51 Mornington-Tyabb Road for $1.15 million. The 230sq m building on 900sq m of land had a large reception area, consulting rooms, staff facilities and on-site customer parking, said Tom Crowder from Nichols Crowder.
Upper Ferntree Gully
A 41sq m shop owned by the vendor for more than 60 years at 1222 Burwood Highway has sold under the hammer for $386,000. Cameron's James Johnson and Nathan Brown said the result was more than 45 per cent above the reserve.
Cheltenham
Local slushie machine making business, icm8, has snapped up an older style factory/warehouse of 513sq m at 4 Barlow Avenue for $900,000 before it hit the market, said Crabtrees Real Estate's Rodney King and Chris McKenzie.
LEASES
The National Heart Foundation has consolidated its operations into a whole floor at 850 Collins Street, committing to 2154sq m for seven years at gross face rent of $515 per sq m. Colliers International's Shane Burns negotiated the lease for the landlord, Transport Certification Australia, while Charter Keck Cramer's Steve Kingston acted for NHF. Mr Burns said there was only one whole floor and one fitted tenancy of 440sq m remaining in the building.
Melbourne
Shanghai Street Dumplings will expand into its sixth store after signing a lease at 360 Bourke Street, on the corner of Elizabeth Street. Fitzroys' Terence Yeh negotiated the 10-year lease with a five-year option for the 400sq m, Level 1 space on behalf of Pavilion 360 Pty Ltd at a net rent of $200,000 per annum plus outgoings and GST.
Moorabbin
Five bidders at a winter auction pushed the price of an industrial complex at 1-4, 53 Keys Road to $2.305 million, a near record yield of 4.5 per cent for similar properties in Melbourne's south-east. Teska Carson's George Takis said the property sold for $1089 a sq m and $350,000 above the vendor's reserve.
Frankston
Jump Swim School has leased a 237sq m retail space at 110 Ashleigh Drive in the Karringal Village Shopping Centre. It was leased on a six-year basis at annual rental of $68,757 and a rate of $290 per sq m, said Knight Frank's Paul Pellegrino.
Hawthorn
A sporting goods outlet has leased a triple-fronted, single-storey showroom at 575-577 Burwood Road, a building formerly occupied by a Carpet World store. Urbane Commercial's Megan Mander said the 300sq m space leased for three years with options for around $250 per sq m net plus GST and outgoings..
Flemington
Leo Mancino from CVA has leased a large showroom on the corner of Flemington's busiest intersection, Racecourse and Smithfield roads. The property at 454-470 Racecourse Road took just three weeks to lease for $120,000 per annum, Mr Mancino said.
Moorabbin
Party supplies retailer, I Love This Shop Megastore, and another retailer, Dollar Curtain and Blinds, will underpin the expansion of Kingston Central Plaza at Moorabbin Airport, taking leases in stage two of the expanded 15,740sq m development. They join TK Maxx, The Good Guys, Best Friends Pets, House of Golf, Aldi and Tasman Meat Butchers, CBRE's Chris Parry said.
Moorabbin
Ellis Air Conditioning has leased a 5804sq m warehouse at 1 Chifley Drive in Moorabbin Airport, at the Goodman developed Chifley Business Park. Knight Franks' Stuart Gill and Adrian Garvey brokered the 10-year lease for 1437sq m of office space.
Campbellfield
Developer Fulton Hogan has signed a three-year lease for a warehouse at 45 Jessica Road. The net annual rental for the refurbished stand-alone 2838sq m office/warehouse facility was undisclosed, however, facilities in the area achieve rents in the vicinity of $80 to $85 per sq m net. Knight Frank's Daniel De Sanctis and Scott Braithwaite brokered the deal.
Kew
12RND Fitness has leased a 140sq m space in the INQU building at 140 Cotham Road. The property was leased on a 7+5 year basis at $73,400 per annum equating to $524 per sq m gross, Knight Frank's Paul Pellegrino said. The landlord is DCF Property.
Campbellfield
A mail distributor has expanded its Melbourne operations after signing a new lease for a warehouse at 178 Northbourne Road. The 3600sq m clear span shed was leased on a four-year term for an annual rental of $190,000 + GST, CBRE's Daniel Eramo and Amanda Traficante said.
South Melbourne
Social media marketing group TRIBE will relocate within South Melbourne to accommodate ongoing growth. Colliers International's Vincent Tran and Matt Cosgrave, in conjunction with Mulcahy & Co's Jeremy Lewis and Ann Magee, negotiated a five-year term for 300sq m at 180 Albert Road at $450 per sq m on behalf of a private landlord. Meanwhile, Mr Tran, Chris Meehan and Rob Joyes, in conjunction with Killen & Thomas, negotiated a three-year lease at 70 City Road for $500 per sq m for financial services company Goal Group, which will relocate from the CBD.
Knoxfield
An office and school furniture company has leased a freestanding office/warehouse at 51 Gilbert Park Drive after outgrowing its current premises. Crabtrees Real Estate Megan Miles introduced the tenant securing a three-year lease term at $145,000 pa plus outgoings and GST.
Derrimut
A vacant Derrimut industrial property was acquired by a non-for-profit organisation for $1.075 million after a marketing campaign that lasted just three weeks, Fitzroys' Dean Alexander said.
MOVERS
Dorothy He will join Savills Australia's CBD and metropolitan sales team. Ms He's appointment as executive for Asian services, follows a successful sales career at two rival top tier national agencies.
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