The Real Estate Institute of Victoria is selling its Camberwell headquarters after 50 years of ownership, at a time when neighbourhood office markets have proved attractive for both tenants and developers.
The property at 335 Camberwell Road sits on a prominent 3808 square metres in the Camberwell Junction precinct, and comes with zoning for both commercial and residential developments.
CBRE’s Tom Ryan, Scott Orchard, David Minty and Nathan Mufale have been appointed to steer the sale campaign on behalf of the REIV, which is offering the property with vacant possession.
REIV president Andrew Meehan said the sale was the start of a new chapter in the “organisation’s journey”. No price was disclosed, but prices of more than $20 million have been achieved for similar properties.
CBRE director Ryan said the site has a 2070 square metre office building, 45 metres of frontage to Camberwell Road and parking for 60 cars.
“Every decade or so Camberwell sees a major landmark surface – in this case 335 Camberwell Road, which the REIV has been the custodian of for almost 50 years,” Ryan said.
“The site suits office, education, or other owner-occupier uses.”
Given the area’s proximity to transport to the CBD and a large catchment zone, developers are also expected to show an interest.
Other deals in the district have been by Chemist Warehouse associate Michael Spektor, who paid $10.93 million for a pharmacy 736-740 Glenferrie Road in nearby Hawthorn.
United Petroleum founders Eddie Hirsch and Avi Silver snapped up an East Hawthorn office building, paying $17 million for 465 Auburn Road. The move follows an $18 million office deal at Kew Junction completed last month.
On the neighbourhood market leasing side, based on recent research, Colliers agents said momentum has seen 70 deals secured in the fringe and metro markets within the first five months of 2023, representing 42,776 square metres in total leased office space.
Demand for workspace in the metropolitan areas surrounding Melbourne’s CBD has continued to soar during the first quarter of 2023, particularly in the city fringe, where areas such as Collingwood, South Yarra and South Melbourne continue to attract businesses.
Colliers national director Travis Myerscough said the city fringe is particularly of interest due to its
already established amenities surrounding the office buildings, providing a more varied work/life
offering where office and lifestyle services seamlessly connect.
“Amenity within and surrounding the office space has become more important than ever for businesses, as buildings and its office space are being utilised differently now compared to pre-pandemic,” he said.
“Tenants are no longer just utilising the office and its surround between 9am to 5pm. With more flexibility offered to employees around working arrangements, offices in areas that are activated during many hours of the day have become more desirable.”
Ryan added that the commercial investment and development markets in Camberwell continue to be as dependable as ever given constrained supply, affluent demographic and the popularity of the residential sector.
“Together with Hawthorn, Camberwell has one of Melbourne’s most highly regarded office markets and benefits from being home to many of Melbourne’s top private schools and tertiary education providers,” Ryan said.
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Source: Thanks smh.com