The latest sold property at 12 – 25 Marine Parade is a 5,707 square metre site abutting the Yarra River, and the Abbotsford Convent Arts Precinct. It has street frontage to Clark Street to the east and Paterson Street to the north and includes more than 5200 square metres of warehouses, which the new undisclosed owner plans to occupy.
Teska Carson director and selling agent Larry Takis said the property aroused interest from investors, syndicates and owner occupiers.
He said Abbotsford is establishing itself as a leafy, quiet and boutique inner city office hub only minutes to the CBD, eastern suburbs and outer eastern suburbs, and points says strong tenant demand is encouraging many developers to invest. He said demand for space far exceeds supply.
Late last year, Foster’s sold a portfolio of 11 properties surrounding the massive CUB brewery to Sydney-based fund manager and developer Charter Hall for about $41 million. That sale followed a deal last November, where interests associated with the Smorgon family paid $22 million for a fully leased 5300 square metre office building in Trenerry Crescent.
A week earlier, Investa Property Group pre-sold an as-yet-unbuilt 10,000 square metre office building at the corner of Trenerry Crescent and Johnston Street, as well as an office in nearby Richmond, to Opus Capital for $85 million.
Like Marine Parade, each of these buildings have direct Yarra River access.
Knight Frank associate director – research, Richard Jenkins, says rents in Abbotsford have increased over the last twelve months to average $300 per square metre for new buildings.
He said established office building rents average $235 per square metre, less than nearby Richmond, which averages $285 per square metre.
According to Knight Frank Research, Abbotsford has a total of 47,300 square metres office space which is 100% occupied. The vacancy has been sub 2% for the past two years.
In comparison, Richmond has some 180,000 square metres of office stock of which just under 4% is vacant.