A converted warehouse in Melbourne’s Fitzroy has sold for $3,000,000 prior to the launch of an on-market sales campaign.
CBRE Melbourne City Sales and Development Sites teams negotiated the sale of the 12 Spring Street property to an owner occupier.
Located on the corner of Argyle Street, the two-level property comprises 446sqm of office space with five car spaces. There is two months remaining on the current lease, with the sale price translating to a 3.69% yield.
CBRE’s Nathan Mufale noted; “This result highlights increased buyer demand from owner occupiers with growing businesses seeking to secure premises in Melbourne’s city fringe suburbs. The strength of the Melbourne office leasing market, driven by low vacancy rates and double-digit rental growth, is driving this trend and making it more appealing for some small businesses to purchase rather than rent.”
The sale price translates to a strong land rate of $11,673/sqm and a building rate of $6,726/sqm.
CBRE’s Max Ruttner said the transaction followed the recent pre-auction sale to an owner occupier of another city fringe building at 229 Moray Street, South Melbourne.
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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.