MARKET WRAP
SALES
Malvern
Shops on Melbourne's suburban strips continue to attract premium prices and fierce competition at auctions. A landmark corner building at 146 Glenferrie Road has sold under the hammer for $6.392 million in pouring rain that didn't dampen the enthusiasm of bidders for the vacant 440sq m building, said Fitzroys' James Lockwood, David Bourke and Jordan Ceppi. Mr Ceppi said investors still had a massive appetite for well located retail properties.
Docklands
The conical shaped home of gelato outlet Limonetto at 35 NewQuay Promenade has sold for $740,000. The waterfront building sold before auction on a 7.4 per cent yield. It had previously been on the market in 2015 but failed to sell. Colliers International's Chris Ling and Ben Baines handled the sale in conjunction with Kenny Oliver of Hocking Stuart Commercial. Mr Ling said the property received multiple unconditional offers before the auction.
Toorak
A Melbourne developer has outbid several rivals, including offshore groups, to pay $6.4 million and a record land rate for 22 Lansell Road at auction. The single-storey house on a prime corner was marketed by Teska Carson's George Takis and Barry Novy, in conjunction with R T Edgar's Jeremy Fox and Tim Wilson.
Glenroy
A monolithic brick and concrete building on the corner of 781-783 Pascoe Vale Road sold under the hammer at a public auction for $3.45 million. The two-storey building is on a 697sq m block. The deal was handled by Fitzroys' Chris James, Terence Yeh and Chris Kombi, who refused to comment.
Ashburton
The premises of cafe Mr Burton at 199 High Street has sold for $1.675 million on a 3.5 per cent net yield. The three-year lease to the cafe was returning $59,458 per annum (plus GST and outgoings), with three further four-year options and 3 per cent fixed annual increases, Ray White Oakleigh's Paul Rizzo and Theo Karkanis said. "The property was passed in at the October 31 on-site auction, on our recommendation, and sold minutes later to the highest bidder," Mr Karkanis said.
Kew East
A vacant shop and dwelling at 650 High Street sold at auction for $1.56 million to a potential owner-occupier who made the final successful bid. Gray Johnson's Matt Hoath said it was on the market for the first time since 1959 as the vendor has previously conducted a hairdressing business there.
Preston
A local developer paid $1.345 million for a 473sq m site at 52 Showers Street. The block sold with a permit for nine dwellings within the existing building, Knight Frank's Andrew Greenway and Tim Grant said.
Footscray
A 1960s' purpose built ANZ bank at 8 Rosamond Road sold with vacant possession for $1.36 million. Gorman Commercial's Dean Alexander and Alex Browne handled the auction and private sale campaign. The buyer was an eastern suburbs developer who had been priced out of the east and saw more value for money in the west, they said.
Melbourne
Strata office values are continuing to soar. Per square metre rates are continually reaching more than $10,000 compared to an average of $8500 about a year ago, Colliers International's Chris Ling and Anthony Kirwan said. The pair sold Suites 10.04 and 10.05 at 2 Queen Street for $800,000 in an off-market deal.
Mount Waverley
Two office suites at 1 Ricketts Road have been snapped up by separate owner occupiers. Suite 16, a 75sq m office, sold for $410,000 while the 150sq m Suite 8 sold for $725,000, Knight Frank's Nick Sharkey said.
LEASES
Rosebud
Food retailers have settled on Rosebud's foreshore. CVA's Anthony Carbone and Seamus Bolst leased 887 and 889-889a Point Nepean Road in two separate deals. Both premises went to food retailers. 887 was leased for $29,000 per annum and 889-889a for $60,000 per annum.
Thornbury
Coffee Hit Roasters has signed a 10-year lease on a 165sq m shop at 630-642 High Street. The coffee purveyors will pay net annual rent of $75,000, one of the highest rentals achieved for the area, Knight Frank's Paul Pellegrino said.
Moonee Ponds
Another specialty coffee shop will begin pouring on Moonee Ponds Junction at 2 Puckle Street. Fitzroys' Ervin Niyaz and Terence Yeh negotiated a lease with the cafe of a 50sq m ground floor space at $44,000 per annum net, or $916.66 per sq m.
Mount Waverley
@ Work International has leased a 190sq m office suite at 1 Ricketts Road on a 3+3 year lease. It will pay a net annual rental of $69,000, Knight Frank's Nick Sharkey said..
South Melbourne
Phillips Basile Equipment Finance has relocated to 19-25 Raglan Street, the first in a series of deals in the building by Colliers International's Matt Cosgrave and Vincent Tran. Phillips leased 219sq m at $380 per sq m net. Spirit Telecom also relocated to the building from Chapel Street in Prahran on a five-year lease at $340-360 per sq m net and education facility Kumon will open a new centre in the popular building. Kumon leased 519.7sq m at the same rate on a five-year term.
Hawthorn
Swinburne University have leased a 1900sq m office at 260 Burwood Road on a short-term 18-month lease. Gorman Commercial's Richard Height said the building was previously leased to Retail Directions and BP. Rent was likely to be in the order of $350 per sq m. In another deal, Mr Height leased 401 Riversdale Road to Toys and games distributor the Brand Exchange on a five-year lease. Rent was undisclosed but rates in the area are about $300 per sq m.
Derrimut
Colliers International's Nick Saunders has leased a large industrial property at 26 Paramount Boulevard with only one month of downtime. The 6608sq m site leased for $75 per sq m to Specific Freight. "The strength of the leasing market in the west, combined with the excellent building attributes, explains why this property was leased so quickly," Mr Saunders said.
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