Fitzroys has achieved 3 sales under the hammer at 3 auctions in Melbourne’s Bayside suburbs – all with multiple bidders – over 2 days as demand for retail property in the area remains strong.
On Centre Road, Bentleigh, Fitzroys’ David Bourke and Tom Fisher sold the 161sqm shop at 377 Centre Road for $1.753 million, at a very sharp 2.59% yield.
The primely positioned property is occupied by long-standing tenant, Japanese restaurant Ajisai and is adjacent to the newly revamped Bentleigh train station and close to 3 full-line supermarkets in Coles, Woolworths and Aldi.
According to Fitzroys’ latest Walk the Strip report, Centre Road has emerged as one of the best-performers of Melbourne’s iconic shopping strips, with a vacancy rate that has improved steadily in recent years to now sit at just 3.1%.
“Investors have their sights set on Centre Road, Bentleigh. The removal of the rail level crossing has enhanced its already-high accessibility, with plenty of car parking, the train and bus routes, while it has also proven the power of a triple-supermarket offering that attracts a constant stream of shoppers. Traders along the strip have been the beneficiaries and Centre Road, Bentleigh has become an excellent location for businesses,” Fisher said.
The strip is set for further evolution with Glen Eira Council recently finalising plans for its Bentleigh Eat Street, which will see 2,400sqm of public space and side streets activated by cafés, restaurants, bars, outdoor seating, and supported by the extension of trading hours.
Fisher said, “Despite the recent interest rate rises we are continuing to see strong enquiry during campaigns, competitive bidding, and tight yields in this part of the market”.
The transaction follows Fitzroys’ recent sales of 2 retail freeholds in Centre Road also under the hammer and on sharp yields. An investor paid $2.26 million at 3% for 448 Centre Road, the home of popular healthier fish and chips specialists Hunky Dory, while the home of Flight Centre at 434 Centre Road sold , for $1.98 million on a 3.75% yield.
On nearby McKinnon Road, McKinnon, Fisher and Fitzroys colleague Mark Talbot also sold the vacant 83 McKinnon Road corner building to coffee roaster and restaurateur Julien Moussi for $1.106 million.
The director of Only Hospitality Group has more than 2 dozen venues in Melbourne and Geelong.
“Owner-occupiers competing for property is always a strong vote of confidence in the future of the location,” Talbot said.
“McKinnon services a loyal and established local catchment that has been growing with the completion and current pipeline of developments that will continue to bring greater vibrancy and foot traffic to the area.”
The refurbished 98sqm building is on a 198sqm site at the corner of Wheatley Road and is close to the similarly revitalised McKinnon train station that has opened up accessibility to the strip, as well as shops and lifestyle amenity.
Talbot and Fisher also sold another vacant shop, at 64 Rosstown Road in Carnegie, for $1.052 million. The 127sqm building is on a 236sqm site with rear access and Mixed Use zoning, and is close to the new Carnegie train station.
“This was yet another example of the market recognising the positive of impact of the level crossing removal program on retail strips. The Koornang Road precinct has seen freer- flowing pedestrian and vehicle traffic in the area and this has been a good thing for businesses’ trade prospects." Fisher said.