A private investor has snapped up around 450sqm of prime, ground floor retail space at the new 568 Collins Street project in the Melbourne CBD.
Colliers International’s Daniel Wolman and Oliver Hay have negotiated the sale of a whole ground floor of retail under approximately 600 apartments at 568 Collins Street, Melbourne, on behalf of Stamoulis Property Group.
“The appetite for strata retail is extremely strong at the moment, with investors coming in from offshore as well as locally,” Mr Wolman said. “Low interest rates are increasing demand for investments, and the Collins Street location gave this investor the unwavering confidence to purchase the shops vacant possession.”
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Mr Wolman and Mr Hay are now turning their attention to managing the sale of 1,500sqm of strata office space over 10 levels at 568 Collins Street.
“This is state-of-the-art strata office, all with outstanding views over Collins Street,” Mr Hay said.
“On offer is complete Collins Street frontage and outstanding features such as glass floor-to-ceiling windows.
“This is last remaining opportunity for owner-occupiers to acquire their own brand new, full floor strata office on Australia’s premium CBD commercial strip, Collins Street. It is a very rare opportunity.”
With direct access to Collins Street trams and Southern Cross Train Station and in close vicinity to both the legal and financial precincts, Mr Hay said 568 Collins Street offered the best strata offices available for purchase in the Melbourne CBD at present.
“There’s nowhere better to buy strata in this low interest rate environment, with the added incentive of saving on stamp duty by buying off the plan,” he said.
Off the back of Wolman and Hay’s successful sale, the sales team have worked with Colliers International’s retail leasing team to secure an exclusive appointment on the retail component of 568 Collins Street. Ben Tremellen, Cam Taranto and Georgie Cichy are leasing approximately 450sqm of retail fronting Collins Street.
“We have seen interest from a wide range of national and local tenants, spanning from financial institutions to the latest food and beverage operators to hit the market,” Mr Taranto said. “Demand for retail within the western core of the Melbourne CBD is at an all-time high, due largely to low supply levels.”
Two tenancies are under offer at 568 Collins Street, with an additional three tenancies remaining. Across the road, Colliers International has secured full occupancy for the new landmark retail precinct, The GRID, at 567 Collins Street.
“Stronger trading conditions and limited supply at the western end of Collins Street can be attributed to the expansion of Docklands and the large number of residential developments within the area,” Mr Taranto said. “With this increased demand comes the opportunity for landlords to activate their buildings with further retail and improved returns.”
High demand for retail, coupled with strong strata sales activity in the CBD, is expected to drive interest in office space at 568 Collins Street.
Mr Wolman and Mr Hay currently have just one more suite at Lifestyle Working Collins Street (838 Collins Street) under offer on behalf of Lend Lease. Wolman and Hay have been the lead agents that have helped Lend Lease achieve the sale of 136 of 137 suites. Mr Wolman and Mr Hay also recently sold Level 1, 140 Bourke Street for $2.21 million on behalf of a private investor, in a landmark deal for strata office space in the Melbourne CBD.
“We are witnessing a spike in demand from businesses who want to purchase and own their premises rather than lease, encouraged by ever-low interest rates,” Mr Wolman said.
“Office owners are finding it easier to pay off their mortgages quickly and can see the added value in capital appreciation of CBD strata offices.
“Commercial CBD real estate values have never increased more quickly, which is giving confidence to investors to change their business model and purchase rather than lease.”
568 Collins Street is currently under construction and expected to be completed by the end of June.