The 325sqm double-storey corner freehold is leased to Australian hospitality heavyweight Commune Group, which operates Moonhouse from the property, following on from its renowned venues Firebird, New Quarter, Tokyo Tina, Studio Amaro, Hanoi Hannah Vol. II and Express Lane.

“The campaign generated really strong enquiry from local investors, and buyers from across Australia and overseas. The purchaser is an offshore investor attracted to the trophy corner nature of the asset, the long secure lease and high-quality tenancy covenant,” Fisher said.

Commune Group has a 10-year lease from February 2021 over the property, with 5+5-year options. The sale price represented a tight 4.25% yield and the offshore investor plans on using the property as a long-term hold.

“The competition between 6 bidders is a sign the market is strong for secure Melbourne shopping strip investments leased to quality tenants,” Fisher said.

“We continue to see investors pursue well-leased Melbourne shopping strip assets at a time of share market and residential market volatility. The market has really come back to life as Melbourne moves into spring.”

The property is on a 334sqm corner landholding in the heart of Carlisle Street, with a frontage of 43 metres and Commercial 1 zoning.

“The market was attracted to the thriving hospitality precinct of Carlisle Street, which offers strong pedestrian traffic through its great mix of national and local operators,” Kombi said.

According to Fitzroys’ Walk the Strip series, Carlisle Street, Balaclava recorded another tightening in its single-digit vacancies in the past year, as Coles and Woolworths supermarkets and a cosmopolitan offering of cafés, bakeries, eateries and bars continued to draw visitors from its loyal local catchment and the surrounding southside suburbs.


The heart of Carlisle Street is potentially in line for a major refresh in the coming years, also. Coles has just bought its own supermarket building and surrounding shops fronting Carlisle Street, which together are likely to be part of a retail precinct redevelopment.

Kombi said the market recognised that Carlisle Street is supported by excellent existing demographic fundamentals with a mix of white collar professionals, students and families driving activity, and the spending power of the residential and worker catchment is being boosted by an increase in multi-storey apartment and commercial development activity.

This includes the new Open Court on William Street, which is bringing nearly 6,000sqm of office space to the precinct.

Liu said Carlisle Street’s accessibility to public transport via Balaclava Station and the Route 3 and Route 16 trams, and major roadways such as Nepean Highway, Dandenong Road, Beach Road and Hotham Street, encourages patronage from all across metropolitan Melbourne, as well as attracting more residents and workers to the area.

The next test for Melbourne’s prime shopping strip market will come when Fitzroys auctions a dual-tenanted Burke Road, Camberwell freehold occupied by Specsavers and Woodfrog Bakery.

Fitzroys’ Chris James, David Bourke and Ben Liu are marketing 570-572 Burke Road, which will go to auction on Thursday, 17 October at 11.30am on-site. The two-level dual-fronted building of 403sqm is occupied by international brand Specsavers on a 10+5-year lease and the popular Woodfrog Bakery on a 5+5-year lease, returning a fully leased income of $283,359pa plus outgoings and GST.

Expectations are of circa $4.5 million.

Recent prime shopping strip sales by Fitzroys have included 626 Burke Road, Camberwell, anchored by national footwear brand Frankie4 and which sold for $5.081 million - at $1 million above reserve - on a sharp 3.6% yield; the home of the Commonwealth Bank branch on Acland Street, St Kilda for $4.4 million, $300,000 beyond the reserve and on a 4.9% yield; and 48 Church Street, Brighton, securely leased to Bed Bath N’ Table, also on a 3.6% yield.