Glen Waverley warehouse trades on 1.86pc yield
Adjoining Glen Waverley warehouses – two of 40 freehold properties in the middle-ring suburb’s industrial precinct – offered as one, traded to an investor at a hotly contested auction last month.
The $3.325 million paid for 3 and 3A Aristoc Road reflects a low 1.86 net passing yield – indicative of its rent, which the agents said is below-market, but also the rezoning potential and development upside, near a proposed Suburban Rail Loop station.
Five suitors contested at auction, Emmetts’ Charles Emmett, who marketed the property with Geoff Emmett and James Rook, said, adding the vendor has owned it 50 years.
“This is the first time a property in Glen Waverley’s industrial precinct has been offered since February, 2022,” according to the executive.
“The current industrial vacancy rate is zero per cent,” he added.
“We received 137 enquiries with significant depth of owner-occupiers seeking vacant premises which this property did not satisfy”.
As much interest if empty: agent
On 1626 square metres zoned Industrial 1, 3 Aristoc Rd, as it is known, contains 988 sqm of warehousing, presently amalgamated and rented to Top Fitness gym on a lease expiring at the end of next year, with two five year options.
The auction result prices the building area at $3365 per sqm while the land is $2044.
An expected rezone in to coincide with the opening of a nearby SRL stop – and rising demand for commercial product as the infill suburb becomes more populated – is expected to see values surge longer-term.
“SRL Stage 1 is planned to increase Glen Waverley’s direct connectivity to Melbourne’s booming eastern suburban centres including Cheltenham, Clayton, Monash, Burwood and Box Hill,” Mr Emmett said.
“As part of the SRL Project, the Victorian State Government is planning increased development densities and potential rezonings within proximity to new stations including Aristoc Rd, Glen Waverley to increase population density and economic activity close to new stations,” he added.
Glen Waverley, a state government classified major activity centre for decades, is 19 kilometres south east of the CBD.
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