Last week, we explored how vacancy rates in the Melbourne CBD office space are starting to trend downwards, as workers continue to transition back into physical working environments. Now, Colliers’ latest sale is demonstrating how this trend is extending to the fringes of the CBD.
363 King Street, West Melbourne is a three-storey office freehold, with a substantial site area of 1,112 sqm, located directly opposite the scenic Flagstaff Gardens. And now, it has a new owner.
An interstate owner occupier has purchased the property for $22.01 million, after a competitive international Expressions of Interest campaign run by Colliers' Oliver Hay, Daniel Wolman, Matt Stagg, and Leon Ma, which prompted notice from a variety of buyer profiles.
“The pent-up competition from the owner occupier market versus the build to value-add investor profiles drove the campaign to achieve great attention,” stated Colliers’ National Director, Oliver Hay. “[This] resulted in a fantastic outcome for both the vendor and the purchaser.”
363 King Street, West Melbourne, VIC 3003
In close proximity to a range of public transport options, as well as being right next to the established Haileybury College City Campus, 363 King Street is a prime piece of office real estate, that attracted an appropriate figure to reflect its quality.
This sale arrives shortly after a bevy of Colliers-marketed office properties were sold in the CBD, including level 2 at 320 Queen Street, level 11 at 530 Little Collins Street, and level 1 at 893 Collins Street.
Part of what differentiates 363 King Street from these sites is the development potential; whilst the current building size of 2,730 sqm is substantial, permit approval has been granted for a 13-storey office facility which would possess a new building area of 5,518 sqm with basement car parking for 14 vehicles. This flexibility to redevelop if desired is valuable.
As office occupancy rates continue to trend upwards at a rapid pace, the value of these inner-city spaces will only increase. Back in January, the Property Council of Australia found that office occupancy was down to 4% in the Melbourne CBD. Comparatively, in May, that number had surged dramatically, to 48%. As businesses fill their working spaces more consistently, expect properties like 363 King Street to become all the more esteemed.
