Melbourne CBD strata offices continue to be snapped up.

Sales of strata offices in the Melbourne CBD have begun strongly in 2013 after being flagged as a potentially attractive investment option last year.

Owner-occupiers and investors have been buyers of strata offices in the first two months of 2013.

The sale of 1 Elizabeth Street Melbourne for $940,000 by agents DTZ represented $4,921 per square meter and was purchased by YC Travel who intends on occupying the space.

This is in contrast to a previous sale in the building in 2011 for $800,000 for a full floor strata office.

The property had been on the market for over 12 months, but upon advice from DTZ, the previous owner removed the existing dental practice fit-out to reposition the property in the market.

“Within a week of the removal of the previous fit-out we received multiple enquiries, with the offers ranging from $840,000 up to the $940,000 negotiated sale price,” said DTZ agent Craig Hembrow.

Also sold in January was level three at 250 Queen Street.

The 420 square metre floor sold for $1.85 million through Kliger Wood Real Estate, representing around $4,404 per square meter.

Selling agent, Grant McKenzie says the sale represents an indicative yield of 7.46% based on the current rent for a whole floor in the building.

The property was sold with a lease in place consisting of $138,000 net rent per annum on a four year lease with a four year renewal option and 4% annual rental increases.

Last year Property Observer reported that strata office space in the Melbourne CBD was being acquired by small businesses as their business premises for as little as $95,000, according to property services group DTZ.

A 2012 Urbis Melbourne strata office market report calculated that there are some 1,800 strata units within the Melbourne CBD, with an average sales turnover approaching 130 units per annum – this represents 7% per cent of total stock.

The report notes that prior to 2000, the market was characterised by the creation of strata units from the conversion of older, conventional office buildings, with few purpose built facilities.

Sales completed towards the end of last year include an office-warehouse property on Ricketts Road in Mount Waverley, which sold through Crabtrees Real Estate sold for $1.26 million in November.

The site has a total building area of 695 square meters inclusive of 191 square meters of air-conditioned offices.

It was purchased by owner-occupiers and brickwork specialists, Byrne Construction Systems.

The property is part of a commercial strata development located within close proximity to the Monash Freeway.