Whilst the residential market is currently slowing into a more normal and predictable cycle, by contrast the Commercial market has been extremely buoyant over the past few months, particularly Industrial property which has been underpinned by owner occupiers competing strongly for Warehouse facilities in the $1-$2 million range.
Buyers are certainly very conscious of interest rates changing, however good quality property continues to be keenly sought.
Notable sales include 44 Theobald Street in Thornbury sold several weeks ago for in excess of $2 million representing $3,700/sqm metre for a 540 sq metres building. Six bidders including some motivated locals highlighted the power of the auction process for a well-presented building.
133 Northern Road in West Heidelberg presenting an older style building on a large allotment of 2700 sq metres, sold at auction in late May for in excess of $4M after being declared on the market at $3.65M.
Off-market activity has also been robust this quarter. 54 Northern Road in West Heidelberg sold in late June for $5 million, representing a yield of 5.4% for a long-term tenanted building.
Other investment sales include two industrial offerings in Crissane Road, Heidelberg West. 65-67 Crissane Rd, a blue-chip investment opportunity factory/warehouse sold strongly in June for 2.3M reflecting a 4% yield. An immaculate office/warehouse at 1/69 Crissane Rd sold the same day for $910K.
From a retail perspective144 Burgundy Street sold in late May at auction for in excess of $1.7M, reflecting a 3% return for a strata property – exceptionally strong return.
842 High Street Thornbury has sold in excess of $1M after auction in May to an owner occupier and another vacant possession sale at 1119 Riversdale Rd in Surrey Hills, a shop and dwelling with dual street frontage sold for $1.080,000.
If you are considering buying or investing in commercial property do not hesitate to reach out to the team at Miles. Our commercial team are always available to discuss any specific enquires or advise on any aspects of the changing market across commercial, industrial, retail and leasing.
And finally - please don’t hesitate to contact us should you require an appraisal. Our team will provide a detailed, trusted opinion on the value of your commercial property. Our local experts have a deep understanding of the market, its movements and trends so you can make an informed decision.
