Next Test Set For Melbourne’s Strip Retail Investment Market

Posted on 07th April 2021

Melbourne’s retail and commercial property market is set for its next test, with the auction of a securely-leased Burke Road, Camberwell asset located in the absolute prime of the famous shopping strip.

Fitzroys agents Chris James and Chris Kombi are marketing 580 Burke Road, Camberwell on behalf of private owners that have held the property since 1977.

The commanding, dual-fronted 344sqm freehold is located in the heart of Burke Road, Camberwell on a 361sqm site with two genuine street frontages to both Burke Road and Market Place.

Highly successful National apparel tenant Witchery, part of Country Road Group, has a long lease over the property that returns $289,230 per annum net. Showing confidence in the location, Witchery extended the lease last year.

Witchery has activated the open plan ground floor retail area to both frontages, providing a clear walk through from Burke Road to Market Place. The frontage to Market Place provides additional activation to the major car park, Camberwell Fresh Food Market and a bustling hospitality precinct.

The first floor is accessed via an internal stair case and comprises staff amenities.

Zoned Commercial 1, the property offers numerous alternative future uses and development outcomes, and its configuration allows for potential to subdivide the premises into two tenancies.

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Kombi said there have been very few high-quality, well-located properties within Melbourne’s shopping strips offered for sale over the past 12 months.

“The security of bricks and mortar assets has become even more highly sought-after during the COVID period and in the ultra-low interest rate environment.

“Well-located Melbourne retail and commercial property with strong tenancy profiles and long-term leases present among the best examples of these investments.”

James said Melbourne’s shopping strips have demonstrated their resilience over the past 12 months.

“Local neighbourhood strips been the place for Melburnians to reconnect with their local communities - to have a coffee, catch-up with friends, or to break up the day and go shopping, particularly as working from home becomes more widely practiced.”

The property is just metres away from 751-753 Burke Road, home to national retailer Mountfords Shoes on a long-term lease, which Fitzroys sold for $7.55 million in the first auction of a prime Melbourne shopping strip asset in 2021.

“The sale reaffirmed Burke Road, Camberwell’s status as one of Melbourne’s most valuable and best-performing retail and lifestyle precincts,” James said.

He said the property is in a highly accessible position that enhances its connection to the prized affluent and established catchment that Burke Road and the Camberwell Junction precinct serve. This has been 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.

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