Melbourne office sales signal strengthening market

Melbourne, 1 May 2014 – A Melbourne-based marketing firm has acquired an un-refurbished office property on the fourth level of The Edition tower in the CBD for $865,000.

Located at 517-535 Flinders Lane, the 173sqm office property features an older style fit-out and is centrally located between King and Spencer streets in walking distance to the Flinders and Southern Cross train stations.

The property was purchased with a short term lease of eight months.

CBRE’s Tom Tuxworth, Chris Pharr and Ed Wright negotiated the deal on behalf of vendor Sullivan Property. The transaction equated to a rate of $5,000 per square metre.

Mr Tuxworth said the strata development was a highly sought after office destination in the CBD.

“The Edition is becoming one of Melbourne’s hottest placed to work, with buyers attracted to the building’s creative design and resort like facilities,” Mr Tuxworth said.

“Enquiry for commercial office space has never been stronger, with businesses wanting to take full advantage of the low interest rate environment.”

Further demonstrating the strong demand for office space in the Melbourne CBD is the recent sale of a 155sqm property on the first floor of 414 Lonsdale Street for $600,000.

The vacant property was purchased by a Chinese developer who plans on refurbishing the office and using it as its new Melbourne headquarters.

“This space attracted strong buyer interest, with more than 45 enquiries and 25 plus inspections – a reflection of the current supply and demand balance for well-located strata offices,” Mr Tuxworth said.

“We feel that this sale, along with other recent whole floor transactions, are having an impact on buyers being more aggressive in negotiating and securing strata office properties.”