Melbourne’s prime shopping strip market is set for its first test under auction conditions in 2022, with a unique offering in the absolute prime of Burke Road, Camberwell expected to attract investors, value-add players and owner-occupiers.
Fitzroys’ Chris James and David Bourke are marketing 566 Burke Road on behalf long-term private owners via Public Auction on Thursday, 17 March at 1pm.
Expectations are of circa $7 million for the commanding 646sqm two-level building that is set to be vacated by NAB at the end of June.
“This is one of the most versatile opportunities offered in the prime of Burke Road, Camberwell in years, with its dual frontages and position opposite the Camberwell Fresh Food Market,” Bourke said.
The building comprises a large 474sqm ground floor retail and commercial showroom with high atrium ceiling to Burke Road frontage, and a first-floor mezzanine area with partitioned and open-plan offices, and staff amenities including bathrooms and lunchroom areas.
It provides walk-through accommodation to Market Place, offering further activation to the major car park and Camberwell Central, Woolworths, Kmart, Officeworks, and Aldi, while the office space can be accessed via the main retail area and separately from Market Place.
The large 560sqm landholding has a commanding frontage of 12.9m to the prime of Burke Road and Camberwell Junction precinct, just metres from the Junction itself and with huge exposure to passing traffic. It also has a 14.2m frontage to Market Place, and Commercial 1 zoning offers extensive value-add and development opportunities.
“Investors will note the property’s ultra-prime location within one of the best-performing shopping strips in Melbourne throughout the COVID period,” Bourke said. According to Fitzroys’ latest Walk the Strip report, Burke Road demonstrated its resilience with vacancies coming down from 11.3% to 7.3%, marking the biggest reduction in vacancies across Melbourne’s iconic shopping strips.
“Burke Road has proven its credentials throughout the past two years, maintaining its quality tenancy mix of local and national traders, supermarkets, cafés and restaurants attracting large volumes of visitors and custom from its large, established residential and commercial catchment,” Bourke said.
“Local, national and international buyers have shown interest in Melbourne’s inner-east in recent times, and we expect this campaign to be no different.”
James said favorable Commercial 1 zoning enhances the repositioning potential of the property, which is suited to a range of retail and commercial uses, from continued use as a bank branch through to large-format retail.
“This is an incredibly unique opportunity to secure an ultra-prime flagship Melbourne shopping strip premises.” James said.
“Well-located Melbourne shopping strip assets present compelling opportunities for investors, value-add players and owner-occupiers alike.”
NAB will be relocating to smaller premises nearby and the current NAB’s lease offers short-term holding incomes equating to $534,617 per annum plus GST.
Fitzroys sold $24.73 million worth of prime Burke Road, Camberwell properties in 2021 at an average yield of 3.8%, with the sale marking the changeover of a combined 180 years of ownership across the offerings.
“Owners are recognising the pent-up demand and the large volumes of capital waiting to be deployed in the market after a lack of quality stock came to the market over the past two years,” James said.
Burke Road, Camberwell’s catchment has been further enhanced by new medium and high-density residential and commercial developments such as Camberwell Village, Hawthorn Park, Aerial, The Well Residences, Elmington, Solstice and Ebony.