The 4,926sqm, dual-frontage site is zoned for commercial development.
“We expect the campaign to generate interest from major commercial office developers, as well as land bankers, keen to secure a parcel of land only three kilometres from the Melbourne CBD and one street back from Richmond’s Bridge Road retail and commercial strip,” Mr White said.
“Vacancy rates in the city fringe office market are the lowest in Melbourne given the lack of modern, high quality office accommodation coupled with changing work place demands, meaning tenants are actively accommodating their employees’ desire to work in more accessible locations.”
Mr White added that increasing tenant demand had also led to a marked increase in land prices for commercial zoned land in Melbourne’s inner-city markets.
“Four to five years ago, land prices in Cremorne were around the $4,000/sqm mark, however we’re now consistently achieving rates of $12,000/sqm to $13,000/sqm,” Mr White said.
“This is having a flow on affect in surrounding precincts such as Richmond, with the Get Wines Direct Store on the corner of Murphy Street and Burnley Street achieving a sale price well in excess of $7,000/sqm in late 2018.”
CBRE’s Mr Tong noted that Melbourne developer Peregrine Projects had also recently been awarded a nine-level office permit for a Richmond project, with pre-commitments currently being sought.
“This market activity is a clear sign that a diverse range of buyers are actively targeting sites in Richmond for commercial office development,” Mr Tong said.
Buyer interest in 120-128 Murphy Street is expected to be from the mid $20 million range.
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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.