The best of Bourke Street - Major hospitality offering in Melbournes CBD retail core
Major hospitality offering in Melbourne's CBD retail core
| 14 October 2019
A major retail and hospitality building moments from Melbourne’s Bourke Street mall is set to hit the market.
The CBRE Melbourne City Sales team of Mark Wizel, Julian White, Nathan Mufale and Chao Zhang has been appointed to sell 384-386 Bourke Street - a substantial two-level retail and hospitality building which offers further development potential, subject to the relevant planning approvals.
The circa 924.6sqm building is situated on a dual fronted landholding of approximately 514sqm. It offers around 10 metres of frontage to Bourke Street and access/retail activation potential via Warburton Lane at the rear.
It benefits from a high-profile location opposite the new National Australia Bank global headquarters, which are currently under construction and set to house thousands of office workers.
“Retail rents in the Melbourne CBD are rising rapidly as emerging and expanding hospitality groups compete to secure prime space within the city’s retail hot spots. This rental growth is underpinning rising capital values and increasing demand for well positioned assets with new leases in place,” Mr Wizel said.
The property is being offered with a new 10-year lease to a major food and beverage hospitality tenant, set to take occupancy of the building next year. This will provide an initial net income of approximately $586,275 per annum, plus 3.25% annual increases
Mr White noted; “Reduced stock levels, low interest rates and strong population growth is driving investor demand for retail opportunities in the Melbourne CBD and we expect strong interest from domestic and international buyers as a result.”
The listing follows the recent sale of 60 Hardware Lane – a nearby, two-storey retail building plus basement, which sold under the hammer at a yield of 2.9% and a building rate of $25,423/sqm.
384 Bourke Street will be sold via International Expressions of Interest closing in November 2019.
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About CBRE Group, Inc.
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.