Melbourne Suburban Office Block Hits the Market

A suburban office block has hit the market for the first time in three decades, with price expectations of more than $30 million.

Located in the city's south-east, on a 4,305sq m site at 173 Burke Road Glen Iris, the low-rise, two-storey office building is being sold via an expressions of interest campaign.

The 3,383sq m asset, zoned commercial 1, offers potential scope for future development of up to five levels.

The property is 100 per cent leased to seven tenants on a one-year weighted average lease expiry with a net passing income of about $795,000 per annum.

Colliers International’s Peter Bremner and Daniel Wolman will manage the campaign, along with Alexander Robertson’s Kristian Peatling and Warwick Bramich.

Bremner expects the campaign will generate wide-ranging interest from investors, developers and owner-occupiers alike, given the property’s location—around 10km from the Melbourne CBD, along with development potential.

The listing comes alongside an expressions of interest campaign launched on the same day across town for a 22,000sq m industrial landholding, also with redevelopment potential, at Sunshine in the city’s inner west.

Sunshine site to fetch $20 million-plus

A 22,000sq m industrial landholding with redevelopment potential has hit the block in Sunshine in the city’s inner west.

Located on the corner of Anderson Road, the 501-503 Ballarat Road site comprises a combination of office and warehouse and a self-storage facility and is expected to fetch upwards of $20 million.

The asset is occupied by vendor Berkeley Apparel which began manufacturing and distributing suits in 1907 and continues to import suits for distribution to major resellers including Myer.

Dawkins Occhiuto director, Andrew Dawkins, who is managing the sale along with Chris Jones and Walter Occhiuto, said while the property could continue as-is, it also offers significant redevelopment potential.

“This is primarily one for the astute developer looking to create a development which will deliver something special for the city of Sunshine,” Dawkins said.

“[Melbourne’s] west is one of Australia’s fastest growing regions with a 69 per cent projected population growth to 2041 and the creation of an estimated 50,000 new jobs in this precinct alone. This growth, along with substantial infrastructure development, will transform the Sunshine Activity Centre providing an enormous number of opportunities for developers in a number of areas.”

Expressions of interest for both properties close on 26 March.