Following Melbourne’s overall real estate market rise, activity across the Banyule commercial property segment has lifted significantly post lockdown. There has been a marked increase in listed properties – both in the sales and leasing sectors.
The limited supply of properties throughout this year’s lockdown period helped build demand and, as a result, the Miles commercial team has achieved a range of exceptional results in the past six weeks.
The recent off market sale of a retail investment in Ivanhoe Parade achieved $615,000, which included the renewal of a five year lease to a laundromat returning $24,000 per annum – equating to a 3.7% yield.
An industrial property at 10 Fink Street, Preston sold through an ‘expressions of interest’ campaign in October for $3.2 million, reflecting a solid vacant possession rate of $3,200/sqm.
As we head towards Christmas, Miles will be bringing several premium commercial properties to market. A medical centre at 82-84 Main Hurstbridge Road, Diamond Creek – currently leased long-term to a business at $125,000 per annum – has an anticipated sale price in the vicinity of $2.5 million. A modern high-clearance food premises at 89 Northern Road, Heidelberg West is expected to achieve in the vicinity of $3.75 million, in a market with limited opportunities for food businesses. There is currently a short-term lease on the property, opening opportunities for keen buyers in this industry.
The Miles commercial team is seeing an extremely active industrial leasing market, with a limited supply of listings resulting in the strongest demand seen in the past 20 years. This reflects a trend towards smaller to medium sized businesses seeking industrial and wholesale type premises.
The hard hit retail leasing market is bouncing back better than expected after a challenging lockdown period that saw many shopping strips closed for extended periods across 2020 and 2021. With COVID-19 restrictions almost fully lifted, retail businesses are able to return to pre-pandemic trading. Strong incentives are still available for quality tenants seeking long-term tenure.
We anticipate a very buoyant start to 2022 with several campaigns already locked in for late February. We encourage anyone thinking of leasing or selling in the new year to contact us prior to Christmas, so we can start planning a successful campaign.
From the Miles commercial team, we wish all our clients and the wider community a happy and restful festive season and a prosperous 2022.
