Melbourne’s Office Market Retains Lowest Vacancy Rate
Melbourne has retained the title of Australia’s tightest CBD office market, according to the Property Council of Australia, with a sharp 3.2% vacancy rate as it readies for the biggest wave of new stock in nearly 30 years.
More than 400,000sqm of new space is expected to come online in 2020, and almost 90% of that is pre-committed. Around 600,000sqm of space will have been introduced by the end of 2022, 70% of which is pre-committed.
The CBD will account for 57% of new space coming online in the CBD markets across the country this year, making it the fastest-expanding city in Australia.
East Melbourne recorded the lowest non-CBD vacancy rate in the country at 2.4%.
Bourke Street Freehold Sells for $22.5m
A local investor paid $22.5 million for the 2-level building at 384 Bourke Street, which will soon become a new bar and restaurant concept by Eddie Muto.
Currently occupied by OPSM and located near the popular Hardware Lane dining laneway, the property was leased in December for 10 years to Lola Restaurant & Bar at $586,275pa. The vendor was investor M & M Assets.
Venues by Muto’s Barman & Larder group include Left Bank on South Bank, Meat Market, Henry & the Fox, Common Man.
Macau Investor Makes Moorabbin Move
A large format retail property in Moorabbin leased to Freedom and Barbeques Galore has sold to a Macau investor for $21.8 million.
The vendor of 1000 Nepean Highway was Greenlit Brands, formerly known as Steinhoff Asia Pacific and which is Australia’s second-biggest furniture retailer.
The recently refurbished 2-storey, 4,376sqm building sold at a 5.29% yield. It has 65 basement parking spaces and is next door to the Moorabbin Homemaker Centre.
Disclosure: The weekly Fitzroys Property Wrap is for information only on transactions in the Melbourne property market. Fitzroys provides this information as a public service. We are not purporting that all sales and leases within this report were transacted by Fitzroys. Terms/Privacy © Copyright 2020 Fitzroys.