Unprecedented growth in Melbourne’s CBD’s commercial market has sparked the sale of a prominent freestanding office building in the CBD’s legal precinct.
Leading indigenous and tropical health research institute, Menzies, has appointed CBRE City Sales to divest its 563 Lonsdale Street property, with intention to reinvest funds from the sale into the business.
Located on a 336sqm landholding with double street frontage, the property comprises a two level commercial building comprising 670sqm. The property is being offered for sale with vacant possession.
CBRE’s Nick Lower, who is selling the property in conjunction with Tom Tuxworth and Paul Tzamalis, said the opportunity was expected to attract strong interest from both offshore and local investors.
“In 2016, there was an unprecedented commercial sale activity in Melbourne’s CBD, with investors eager to capitalise on investment opportunities in the city’s most highly sought after pockets,” Mr Lower said.
With reduced stock supply in 2016, pent up demand and competition has resulted in record transactions in the Melbourne CBD, Mr Lower explained.
“This property’s enviable position is surrounded by Melbourne’s best known law firms and legal chambers, multiple transport links and first class retail amenity including the Melbourne Central Shopping Centre and QV complex.”
Mr Tuxworth said the property was also expected to draw interest from owner occupiers.
“While the property appeals to a wide range of buyer types, including investors, an owner occupier is likely to be the end user following the growing demand from this group,” Mr Tuxworth said.
“Due to record low interest rates and the SMSF investment vehicle, business owners are recognising the advantages of owning the premises they work in rather than paying rent.”
The property will be offered for sale via onsite public auction on Friday, March 3 at 12:30pm.
Content & image provided by: CBRE