A vacant double-storey Cremorne office owned by late accountant Alan Dredge sold at auction for $1.5 million last week.
The 198 square metre building, on a 141 sqm Commercial 2 zoned plot at 16 Hill Street, had a $1.1 million reserve.
It sold to an investor who owns property nearby.
“The influx of new office tenants into Melbourne’s recently dubbed version of Silicon Valley, had seen vacancy tumble with corresponding rental growth,” Mr Feld said.
“Cremorne is very close to the CBD and Richmond offering tenants access to a comprehensive and quality range of amenity and services including parking, public transport and freeways as well as cheaper rents than the CBD”.
The broker added that the level of investor and owner-occupier demand in Cremorne was higher than at any time since the GFC and arguably the strongest it has ever been.
“For all of those reasons Cremorne has become extremely popular and that has meant fewer and fewer opportunities for tenants and owner-occupiers and of course that has resulted in upward pressure on rents and driven strong capital growth”.
Mr Dredge, who died last August, aged 81, represented many high-profile entertainment industry figures.