Melbourne

Veteran agent cashes in on rising demand for Melbourne strata suites

A vacant Bourke Street office suite has changed hands for $1.825 million in the latest sign of buyer interest in Melbourne’s CBD strata market.

05 Aug 2019

A vacant Bourke Street office suite has changed hands for $1.825 million in the latest sign of buyer interest in Melbourne’s CBD strata market.

CBRE’s Melbourne City Sales team of Julian White, Alex Brierley and Chao Zhang negotiated the sale of suite 601, 488 Bourke Street on behalf of veteran real estate agent Chris Mulcahy.

The suite was formerly the premises of Mr Mulcahy’s real estate agency Mulcahy Butera.

An owner occupier snapped up the property for a price that translates to $13,321/sqm based on the suite’s net lettable area of 137sqm. This is 76% higher than the most recent sale in the building of suite 303, which transacted for $7,577/sqm in September 2018. 

“Given the current low cash rate, Melbourne’s very tight office vacancy and associated rent increases, many small to medium size business owners are electing to buy, rather than rent, which is driving the popularity of the city’s strata market,” Mr White said.

Mr Alex Brierley added; “This trend is causing many site owners to consider strata office as a viable alternative to residential or hotel use. Office tenants with 6-12 months remaining on their lease are proving to be the most aggressive buyers of strata office product across the Melbourne CBD to provide themselves with a future relocation strategy.”

Suite 601 offers partitioned offices and included an outdoor terrace. It is located at the rear end of the building backing onto Mantra on Little Bourke Street, overlooking the Supreme Court.For Australian/international news or global stories, follow us on Twitter: @cbreaustralia

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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.

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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.