Surging demand for suburban investment sparks Canterbury campaign
Directors of leading Melbourne based construction company Buildcorp Commercial are moving to sell an office building in Canterbury amid strengthening demand for suburban office investment opportunities.
05 Nov 2018
CBRE’s Melbourne Middle Markets team of Scott Orchard, Josh Rutman and Lewis Tong are handling the sale of 19 Shierlaw Avenue on behalf of Buildcorp’s Managing Director Scott McVilly and Development Director Ross Clarke.
Buildcorp Commercial has developed several commercial buildings along Shierlaw Avenue, including the group’s adjacent headquarters. Mr McVilly said this had created an over specified showpiece for Buildcorp’s capabilities, talent for design and overall attention to detail.
The neighbouring 19 Shierlaw Avenue is a three-level, 1,861sqm office building, which Buildcorp developed in 2004.
The upper two floors are occupied by Scientific Management Associates and Price Gibson, with an up to 24-month rental guarantee being provided for the ground floor.
The building is located near several major schools in Canterbury’s established commercial core, including Siena College, Strathcona and Camberwell Boys Grammar Schools.
It is directly opposite Canterbury’s iconic Maling Road shopping strip, which has had a longstanding zero per cent vacancy rate, and offers easy access to Canterbury Train Station and several major arterial routes.
CBRE’s Scott Orchard said the decision to sell followed a surge in suburban office transactions in 2018, driven by investors seeking to capitalise on future rental growth prospects.
Transactions have included the off-market sale of News Corp’s 1 Chapel Street offices in Blackburn in addition to the recent auctions of 500 Burwood Road and 1 Oxley Road, Hawthorn which have set new market precedents.
“19 Shierlaw Avenue is in a highly sought after price bracket for the Boroondara area and is expected to appeal to both investors and owner occupiers, who could move into the ground floor tenancy,” Mr Orchard said.
“The campaign is the latest to be launched on behalf of high-profile builder identities, who have recognised the pent-up buyer demand for inner suburban office investments.”
CBRE’s Mr Tong said the sale campaign coincided with an historic low office vacancy in the Boroondara office market and a concurrent increase in Asian buyer interest in suburbs such as Canterbury, Hawthorn and Camberwell.
“Over the past ten weeks we have seen a surge of Asian interest for land rich, income producing commercial assets in Melbourne’s inner-city suburbs,” Mr Tong said.
“With virtually zero new office construction in the precinct, there will continue to be occupier demand for buildings like 19 Shierlaw Avenue. Similarly, the top tier nature of the area, affluent demographic and appeal to occupiers has supported strong investor demand.”
19 Shierlaw Avenue will be sold via public on-site auction December 5th, 2018 with early indications of interest around $9,000,000.
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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 2017 revenue). The company has more than 80,000 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.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of 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 https://www.cbre.com.