GP operator secures pre-commitment lease for Coburg medical centre

An experienced GP operator has secured a 15-year lease for the ground floor of a brand-new, state-of-the-art medical centre set to be built in Coburg amid strong interest from healthcare providers across Victoria.

The leasing process for 324 Bell Street was managed by Sandro Peluso and Kai Wang from CBRE’s Australian Healthcare & Social Infrastructure team who secured a rent rate of more than $500 per sqm.

“With construction costs rising by over 40% in the past five years, we’ve seen a significant slowdown in new medical centre developments. The developer of 324 Bell Street is in a unique position, with funding ready to proceed as soon as an operator was secured,” Mr Peluso said.

The campaign received four offers from local and national GP operators. The CBRE team is now working with underbidders to explore alternative opportunities while also seeking tenants for Level 1 (540 sqm) of the Coburg property.

Mr Peluso noted community surveys highlighted a shortage of accessible healthcare services in the area with this new facility set to play a vital role in addressing that gap offering a comprehensive range of services including GP consultations, specialist care, and diagnostic testing.

A key drawcard for the site was its 24/7 operating permit, enabling the incoming GP to fully capitalise on Coburg’s rapid growth. The suburb has the highest proportion of 30 to 35-year-olds in the City of Moreland (18%), driven by affordable housing and a rising influx of young families.

“Coburg’s median house price has surged over 90% in the past decade. With favourable demographics, we anticipate demand for healthcare services in the area will double by 2036, making it an ideal location for both established and emerging operators,” Mr Wang added.

The centre benefits from its strategic proximity to major medical precincts, located within 3km of John Fawkner Private Hospital, Brunswick Private Hospital, and Dorset Rehabilitation Centre, as well as numerous allied health and specialist services.