Doncaster retail sells at $860,000

A retail unit in Doncaster East has sold for $860,000, reflecting an increase in value of more than 100% in four years.

Shop 10 in the Devon Plaza strip shops at 958 Doncaster Road last traded four years ago for $400,000, according to RP Data.

The sale, which was conducted by Chris Alcock of Gorman Kelly, was also 31% more than it was expected to achieve at auction.

The single storey 49.5 square metre retail freehold is zoned Commercial 1 and currently leased to Canine Elegance.

The tenant has a new three-year lease with a three-year option that began in August this year for a yearly rent of $31,200, plus GST and outgoings.

The lease includes 5% annual rent increases with a market review if the option is exercised. The lease agreement reflects a yield of 3.6% for the new owners, while the previous landlord was banking 7.8%.

Agent Chris Alcock says the sale reflects how hotly contended affordable commercial investments area among small investors and self managed super funds.