One of the largest available sites for development in the tightly held suburb of Cremorne will go under the hammer in September and is expected to fetch upwards of $7 million.
CBRE Victorian Development Site Sales team has been appointed to market the 33 Cremorne Street property, which is situated within the Central Activity Centre of the suburb.
Selling agent Josh Rutman, who is marketing the property in conjunction with David Minty, Nathan Mufale and Chao Zhang, said Cremorne’s strengthening appeal is underpinned by the rarity of opportunities to acquire assets and significantly low office vacancy rates.
“Cremorne is the most tightly held city fringe suburb in Melbourne, with an office vacancy rate of below 1%. The low vacancy levels are driving rents and creating a surge of confidence from local and offshore groups that are keen to develop multi-level office buildings in the area,” Mr Rutman said.
“The property’s existing improvements provide potential for strong holding income, while the large size of the site and dual street frontages provide flexibility for future design and development.”
The Commercial 2 zoned showroom offers rear access and is situated on a 761sqm landholding.
Mr Minty added the property is expected to generate a wide range of interest at auction.
“33 Cremorne Street is positioned to draw strong interest from a range of local and offshore developers as well as land bankers that are attracted to the security of the precinct - more specifically the low vacancy levels, rising rents and unprecedented tenant demand,” Mr Minty said.
“Land rates have doubled over the past two years in Cremorne, as we are witnessing growing demand from offshore developers that understand the strong underlying investment fundamentals of the area and the strength of the broader Melbourne office market.”
“Additionally, the property is being offered to the market a time of record confidence in the area from local businesses, as highlighted by the recent announcement from ASX-listed recruitment site Seek that it will be relocating 800 of its staff to 60 Cremorne Street in 2020. Seek will join a number of other tech companies already based in the area, including REA Group and CarSales.com,” Mr Minty concluded.
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