Miles Commercial Market Update - Opportunity Emerges Amid Changing Market Conditions
The past few months have seen some unusual market conditions, with a mix of caution and opportunity shaping the commercial sector.
Sales activity has remained steady, albeit with a smaller pool of active buyers. Despite this, we are continuing to achieve solid results across a range of asset types. Notably, we’re seeing a shift in campaign strategy, with more properties being offered via Expressions of Interest rather than the traditional auction process.
Recent transactions:
68 Mount Street, Heidelberg – a two-storey commercial building sold with vacant possession for $1.24 million
9 Scholar Drive, Bundoora – a modern office/warehouse achieving $1.34 million
Industrial land in Maida Avenue, Sunshine – sold for $3.575 million
Burgundy Plaza – a significant 2,500 sqm holding in the heart of Burgundy Street, sold following a tender process with approximately 65 registered enquiries, delivering a very strong result.
While some buyers are deferring decisions amid ongoing market volatility, these conditions are also creating opportunities. Astute purchasers are recognising the chance to secure quality assets with less competition than in more heated market cycles.
Premium locations continue to command strong pricing, and in time, this period may well be viewed as an attractive window to acquire quality commercial property.
On the leasing front, conditions remain somewhat subdued, with landlords offering competitive incentives to secure quality tenants.
Several solid leasing results include an industrial building at 65 Temple Drive in Thomastown, returning $80,000 per annum for the 700 sq meter site
151-157 Bamfield Road in West Heidelberg was leased to two separate tenancies returning approx. $400k per annum plus outgoings, representing circa $140/sq meter and a ground floor retail space at 96 Grimshaw Street, Greensborough has been leased at $45,000 per annum to a neighboring long-term retailer.
If you have any queries in regard to a commercial property, please don't hesitate to contact our team at Miles Commercial.
