Well-known hospitality operator Retail Savvy Group has acquired a Cremorne warehouse for $5.75 million.
CBRE’s Victorian Development Sites team of David Minty, Nathan Mufale and Chao Zhang handled the campaign for 7-11 Hill Street on behalf of a private local family. The existing warehouse totals 632sqm and sold at a per square metre rate of over $9,000.
The husband and wife team, behind The Fitzroy Social, Asian Beer Café and The Bank on Collins, bid strongly to acquire the property at the onsite auction which was attended by over 70 parties.
Mr Minty said the strong square metre rate achieved spoke to the popularity of Commercial 2 zoned sites in city fringe areas.
“To achieve over $9,000 per square metre for a site located down a narrow side street, with several development complexities, demonstrates the popularity of Commercial 2 zoned sites. We have seen some exceptionally strong land rates in 2017 in Melbourne’s city fringe, with traditionally light industrial buildings attracting a premium due to the development potential,” Mr Minty said.
“Unprecedented tenant demand, low vacancy rates, rising net rents – which are now exceeding $550 per square metre net – are also encouraging the emergence of a new office market in Cremorne.”
Mr Mufale added: “Suburbs such as Cremorne, Richmond and South Melbourne are fast becoming hots spots with both local and off-shore developers looking to deliver new office developments in the city fringe. There are currently 13 commercial office development projects seeking planning approval, which equates to over 100,000 sqm in net lettable area – signaling a bright future for this market sector.”
For Australian/international news or global stories, follow us on Twitter: @cbreaustralia
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), 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 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 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.