A shortage of quality retail and office space in Brighton and surrounding areas is pushing up rental returns for commercial property investors. Coupled with high demand for new and refurbished sites, prime Bayside areas remain hotspots for buyers and sellers alike.
Julian Vautin, Sales & Leasing Executive, says these factors are pushing up capital values and providing superior returns for investors. Vautin explains, “We’re seeing people that have owned prime sites for many years now selling-up as part of their retirement plans. Investors buying these older properties understand the benefits of refurbishing these sites with high quality fitouts to attract premium tenants.”
There are several examples highlighting these trends. Software company Think Procurement has just taken some 240m2 of fully refurbished warehouse-style office space at 14 Spink Street, Brighton at $400 per sqm gross. Further, local marketing agency Happy & Co will be leasing 160m2 of fully refurbished, architecturally designed office accommodation at 2 Small Street, Hampton for $385 per sqm gross. A similar office at 426 New Street, Brighton has been leased at $535 per sqm gross, which shows that quality tenants are willing to pay premium prices to secure prime Bayside commercial space.
James Glen, Sales & Leasing Executive, adds, “The Bayside area has an exciting mix of independent retailers and global brands, niche service providers and great eateries. These businesses see the area as a long-term proposition, such as SunDoctors, which is expanding into Bentleigh after having just signed a new five-year lease at 116 Patterson Road.”
Quality retail sites are also providing strong results for investors. A small, high-end shop on Carpenter Street, Brighton has recently been leased at $800 per sqm gross, while a new 150m2 shop at 28 Riddell Parade in Elsternwick is being leased for $645 per sqm gross.
“Not only are investors getting solid rental returns and long leases, they are not having to provide major incentives to attract tenants,” Glen continues. “This shows how investing in prime sites and having a property that is attractive for businesses to lease can lead to long-term growth for investors.”
For further information contact:
Phone: 0420 406 660
Phone: 0418 186 488