Tea importer pays $290,000 for office and warehouse in Melbourne's sought after south-east

A Melbourne-based tea importer and distribution business has paid $290,000 for an office and warehouse building at Clayton in Melbourne’s south-east. 

The 13/35 Garden Road property comprises a 167 square metre, older style, office and warehouse building.

The sale was negotiated by Savills senior industrial executive, Daniel Kelly, who said the square metre rate of more than $1,730 reflected the outstanding location close to freeways. 

He said the purchaser had also required a location within close proximity of current staff. 

The vendor was a Melbourne based private investor.

Earlier this month, a warehouse/office with long term tenants at Bentleigh East in Melbourne’s south-east has been sold at auction for $1.115 million by Ray White Commercial Oakleigh.

According to property valuers Propell, the Melbourne industrial market has been largely in balance.

"The low vacancy rate has resulted in rents being stable or increasing slightly in some areas, while a shortage of prime space continues to move some demand into the better secondary grade space," says Propell.

"Most leasing demand is in Melbourne west, with 40% of new lettings in this region, while Melbourne north and the south-east of the next most popular regions.

"With rents stable, or increasing slightly, and continuing demand from tenants, the shortage of available space has spurred interest in the land and development markets, with an increase in speculative development, design and construct premises. As a result, demand and activity is expected to continue at current levels during 2013."

Accordign to Propell, rents for prime property in the south east have been stable, in the range of $75 to $90 per sqm net, while rents for secondary properties have fallen slightly and are in the range of $50 to $65 per square metre net.