TWO YEARS after failing to sell at auction for $20 million, the owners of Richmond’s former Rosella Preserving and Manufacturing facility in the inner eastern Melbourne suburb of Richmond are converting part of the facility into luxury offices.
A small red brick building within the former jam and sauce manufacturing complex, and with a street address of 16 Palmer Parade, is being fitted out as a boutique 3-level, 924 square metre office, with an asking annual rent of $267,000.
The office refurbishment is being undertaken by owner Parkmore, which put its part of the Rosella factory on the market two years ago, but failed to find a buyer. A second attempt to sell a smaller piece of the Rosella factory late last year was also unsuccessful, sources say.
Kelly & Kelly’s Anthony Kelly and Andrew Field are marketing the new office at 16 Palmer Parade as a whole, or as three suites. The site adjoins the Besen-family owned office headquarters of fashion group Sportsgirl.
The high rents Richmond offices are able to achieve, compared to warehouses, has made the case for retaining factories in many inner-city suburbs, harder to justify for many property owners.
Many industrial occupants have been pushed out of central areas like Richmond because of a lack of expansion space, rising rents, or other land charges. In the last ten years, this has allowed a new breed of white collar based businesses, largely boutique marketing, architecture, IT and consultancy firms, to establish offices within area.
Average A-grade office rents in Richmond are now about $275 per square metre per annum, making it more expensive than similar quality offices in St Kilda Road (which average $260 per square metre in rent), but cheaper on average than Southbank ($320 per square metre), according to Knight Frank Research.