Melbourne strata office market tipped for a big year

Katherine JimenezDecember 7, 2020

Growing business confidence and easier access to capital could see Melbourne's strata office in for a big year in 2014.

Full-floor office sales in the last quarter of last year came in at more than 13 and that level of strong level of activity spilled into the start of this year.

DTZ manager of CBD Strata Sales, landlord and institutional investor services, Danny Clark said: “We are being inundated with strata office enquiries, and 2014 is set to be a strong year for sales in the sector with growing business confidence and easier access to capital.”

Such is the competition, DTZ CBD strata sales and leasing executive, Samuel Bell added that it recently concluded the sale of a vacant floor at level 1, 20 Queen Street (pictured below), which attracted fierce competition from both owner occupiers and investors.

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The sale, he said, further highlighting the fact that investors were now prepared to carry the risk on vacant floors.

“We are starting to see increased competition from both local and offshore investors looking for quality investments; however, full floor investments are a rarity in the Melbourne market. This competition, coupled with a shortage of available stock, is leading to record sales per square metre," said Mr Bell.

The 20 Queen Street floor was 390 square metres and sold for $1.1 million.

Nearby, at 620 Bourke Street, a 567 square metre floor on level 4, fetched $2.075 million.

Levels 1 and 2, at 420 Collins Street - combines floor size of 780 square metres - sold for $2.9 million.

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