Burke Road, Camberwell is again set to take centre stage in Melbourne’s retail property market, as investors continue to recognise the resilience of Melbourne’s shopping strips.
Fitzroys agents Chris James and David Bourke are marketing 634 Burke Road, which will be offered for sale by executor’s auction on Friday, 28 May at 1pm.
The dual-fronted building has active street frontages to Burke Road and Market Place and is leased to two longstanding tenants. High-profile national retailer Mecca Cosmetica occupies the space fronting Burke Road with Spring Massage Therapy at the rear, for a combined return of $230,809 per annum.
On a generous 249sqm landholding, the property is surrounded by leading retailers including Provincial Home Living, Sheridan, Telstra, Laurent, Smiggle, among others, and its frontage to Market Place offers additional activation to the market car park and Camberwell Central, which has a Woolworths, Kmart, Officeworks, and Aldi.
“Well located leased commercial investments, located in the prime of Melbourne’s suburban shopping strips remain highly sought after particularly with the ultra-low interest rate environment,” Bourke said.
Marketing kicks off just after Fitzroys second major sale in the strip recent - the remarkable $6.788 million auction sale of 580 Burke Road at a sharp 3.8% yield. National apparel tenant Witchery, part of Country Road Group, showed its confidence in the location with the recent extension of its long lease over the property.
A short distance away is 751-753 Burke Road, home to national retailer Mountfords Shoes on a long-term lease, which Fitzroys sold for $7.55 million at a tight 4.1% yield in the first auction of a prime Melbourne shopping strip asset in 2021.
Bourke said it is notable that both properties are leased to tenants selling items of a non-essential, discretional nature - fashion and footwear, respectively.
“The strong results are a reflection that confidence in retail property is returning to pre-COVID levels, and of the resilience of Melbourne’s shopping strips.”
James said local neighbourhood strips have been the place for Melburnians to reconnect with their local communities.
“Burke Road, Camberwell has been ideally placed to weather the COVID period, with its quality tenancy mix of local and national traders, cafés and restaurants attracting visitors looking to have a coffee, catch-up with friends, or to break up the day and go shopping, particularly as the balance between commuting to the office and work from home becomes more widely practiced.”
He added that the catchment had been further 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.
Fitzroys also recently sold the Ambulance Victoria station at 612-616 Camberwell Road, Camberwell for $3.6 million at a sharp 3.8% yield. Over recent weeks, In 2021 Fitzroys has sold $20 million worth of property in the suburb at an average yield of sub-4%.