Melbourne CBD’s premier retail thoroughfare Swanston Street will offer the first test of the market for 2020, with a family offering for sale a building it has held for 70 years.
CBRE’s Melbourne City Sales team of Alex Brierley, Julian White, Nathan Mufale and Chao Zhang have been appointed to market 273 Swanston Street, next to the prominent McDonald’s on the corner of Lonsdale Street and Swanston Street.
In the Melbourne CBD’s booming northern precinct between Melbourne Central, Emporium Melbourne and QV Melbourne, the property is being offered to the market fully leased to an established hospitality operator.
“Swanston Street has long been regarded as Melbourne CBD’s most highly desirable and tightly held street of property ownership and this is truly a once in a lifetime opportunity,” Mr Brierley said.
Over the past five years Swanston Street has been transformed from a retail strip to food and beverage destination catering to Melbourne CBD’s booming student population.
Recent food and beverage leasing deals along Swanston Street have achieved rentals as high as $6,000/sqm for smaller shops.
In a landmark deal, the former Jack London retail store at 301 Swanston Street was leased to popular chain David’s Hot Pot for approximately $400,000, for the 107sqm ground floor space, negotiated by CBRE’s Zelman Ainsworth and Tan Thach.
“273 Swanston Street is well positioned to benefit from GPT’s new 10-level office tower that will sit atop Melbourne Central mall at 300 Lonsdale Street, which will drive rental growth well into the future,” Mr White added.
The last building to transact on Swanston Street was the 1930s-style, heritage 123 Swanston Street, which sold for just under $16 million, reflecting a 2.75% yield, in 2015.
This listing follows considerable activity across the Melbourne CBD including the recent sale of the former OPSM building at 384 Bourke Street for $22,500,000 on a tight 2.6% return, also handled by CBRE.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
