Small office tenants choosing to own over leasing

Smaller office tenants continue to choose to owner occupy rather than lease, says a Fitzroys agent.

Fitzroys agent Stephen Land negotiated the sale of Suite 302, 434 St Kilda Road for $320,000 plus GST.

The 105 square metre suite occupies a corner suite and includes one car park.

He said the office was presented to the market for sale and for lease, with the majority of enquiry came from prospective purchasers,

He said this was indicative of ongoing interest from small tenants wanting to owner occupy ahead of leasing.

“The purchaser plans to occupy the suite after their search for a space within a central location on Melbourne’s city fringe and convenient price point,” Land said.

“The on-title parking space was also an attraction, with most interest buyers requiring at least one parking space.”

Land said CBD strata prices have soared since 2014, and that while the growth has slowed recently, those gains have still priced out a number of potential owner occupiers from the city.

“There is future upside on the rental, with the new Metro train station currently under construction nearby at Domain interchange set to boost connectivity to the boulevard, while the limited number of available small suites in the area continue to shrink as office stock is taken off the market for conversion,” he said.

Land negotiated the sale on behalf of the former owner occupier.