The Commercial Market has enjoyed some very positive levels of enquiry in recent months, despite the post Covid expectations from various media outlets earlier this year.
Industrial leasing enquiry is as strong as we have experienced in the past decade, with limited stock resulting in multiple offers for properties for lease. Likewise, Industrial sales are scarce, causing strong results when good options are offered to the marketplace.
An older style factory in Northern Road, West Heidelberg has sold on a 3.5% yield recently, with five bidders competing for the site, eventually selling for $936,000.00. The same site sold for $900,000 two years ago as a Vacant Possession scenario.
Retail leasing remains reasonable, without the intensity of the Industrial market. Retail investments with solid leases continue to generate solid results, with two properties in East Ivanhoe and Upper Heidelberg Road, Ivanhoe selling circa $2 million at yields of 3.7%-4.1% yield recently.
We have 9 sale campaigns listed leading towards 30 June, including a medical site at 16 Martin Street, Heidelberg, adjacent to Warringal Hospital and an Industrial site at 6-8 Merchant Avenue, Thomastown returning $74,000 per annum, anticipating $1.5-$1.6 million.
Some recent notable sales include:
- 155-161 Burgundy Street, Heidelberg – Sold - $5,920,000
- 222-222A Broadway, Reservoir – Sold - $1,465,000
- 240 Lower Heidelberg Road, Ivanhoe East – Sold - $1,942,500
We are observing that steady levels of economic recovery are now starting to provide a level of renewed confidence throughout the commercial real estate sector.
If you are considering selling or leasing commercial property, we can provide an obligation-free appraisal and offer expert advice to help you make an informed decision.
Click here to get in touch with the Miles commercial team today.
