Melbourne bayside warehouses below $1 million are in demand

Local business owners are snapping up industrial properties below $1 million in Melbourne's bayside suburbs, with recent sales activity and a dwindling amount of space suggesting that investors and developers take a look at the market.

A stock shortage appears to be looming with just 11 properties offering space in excess of 1,000 square metres currently available, according to Colliers International industrial property agent Jamie Stuart.

Of the last five properties he has sold, four have been purchased by owner-occupiers from within the local area. 

“The bayside area is quite a localised owner-occupier market,” Stuart says.

“Businesses within the bayside region of Breaside, Mordialloc, Cheltenham, Moorabbin and the surrounds are bucking the trend and expanding due to increasing confidence in the market and the ability to attract and retain a solid work force in this area.”

Recent sales  include a 1,000 square metre office/warehouse at 1 Endeavour Way in Braeside bought by neighbouring business The Wrapping Paper Company Pty Ltd for $1,105,000; while a 750 square metre from  former engineering facility at 65 Shearson Crescent in Mentone was snapped up for $780,000 by a purchaser who already had premises in the same street. 

Other sales included:

  • A 208-square-metre modern boutique office/warehouse at 9/34 Christensen Street in Cheltenham was purchased by an owner-occupier from Middle Park for $330,000;
  • A 405-square-metre office with storage at 52 Parkhurst Drive in Knoxfield purchased by a photography company for $465,000; and
  • A 1,018-square-metre older style office/ warehouse at 15-17 Bond Street in Mordialloc purchased by a neighbour who was looking to expand operations, for $900,000 

“From strong auction results in the last few months, we have buyers who missed out still waiting for opportunities to arise and fulfill their requirement,” he says. 

“We are seeing a real shift of enquiry from leasing to purchase, due to the affordability of cash and a long term desire to own within this dynamic and localised market place.”

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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