Melbourne’s prime shopping strip market has passed yet another test for 2024, with a dual tenanted freehold in famous Burke Road, Camberwell occupied by Specsavers and Woodfrog Bakery selling for $4.88 million.
Fitzroys’ Chris James, David Bourke and Ben Liu sold 570-572 Burke Road, Camberwell on behalf of a private investor.
The 2-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.
The sale price came in well above campaign expectations of circa $4.5 million.
“We’ve again seen a competitive auction campaign demonstrate the strength of the market, with investors turning to prime Melbourne shopping strip assets with strong lease covenants for security at a time of share market and residential market volatility,” James said.
“The market has really come to life this Spring.
“This was a rare opportunity to acquire a set-and-forget dual-fronted freehold with an excellent tenancy profile and secure income streams, located in the prime trading section of Camberwell Junction. National tenant Specsavers recently renewed their lease and have just commenced a new fit-out, and Woodfrog Bakery trades really well from its tenancy fronting the Camberwell Fresh Food Market.”
Liu said, “Few assets in the heart of famous Burke Road, Camberwell come to the market, and when they do they are highly sought after. The reputation of Melbourne’s inner-east and the Boroondara stretches far and wide - we had more than 115 enquiries come from local, national and offshore investors.”
The property is in the absolute prime of Camberwell Junction, surrounded by national retailers including Country Road's new flagship store, Sportscraft, T2, Priceline, Kathmandu, Mecca, Mountfords Shoes and Frankie4. The property’s Market Place frontage is directly across from the Camberwell Fresh Food Market and a major car park, and forms part of a vibrant hospitality precinct that features Laurent, cafe My Other Brother (MOB Camberwell), and more.
According to Fitzroys’ latest Walk the Strip report, Burke Road and Camberwell Junction’s vacancy rate recorded just single digits for another year at 6.1%, again below the Melbourne-wide average.
Liu said ongoing generational renewal of the immediate area will provide further support for trade, activity and rental growth along Burke Road over the long-term. Burke Road, Camberwell has been the beneficiary of medium and high-density development, which has boosted the established, affluent catchment and underpinned trade, while Council activity is promoting further developments on and around Burke Road and Camberwell Junction, and the Victorian government also has its own plans for boosting residential development in the immediate area.
Camberwell has also emerged as a premium inner suburban commercial office location, which is attracting workers throughout the day and further driving trade.
Recent prime shopping strip sales by Fitzroys have included nearby 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.