Archives: Melbourne Middle Markets (Offices)

In 2013 the CBRE Melbourne Middle Markets team was formed to cater for a market sector that was largely underserviced and required a specialised team approach. This has developed into a strategic alliance between agency operators in both the central city and suburban markets.

Our long and highly interactive affiliation with the Melbourne CBD, St Kilda Road, city fringe and suburban office market sectors, positions us strongly to offer experience, knowledge and innovative solutions to achieve premium prices for our clients.

With strong appetite from private investors, funds, institutions, syndicates and offshore buyers, together with historically low borrowing costs and high capital values, there has never been a better time to partner with CBRE to maximise the potential of your office assets.


IPG puts Century Walk/Novotel on the block

Sydney-based advisory firm iProsperity Group has put two major assets – the Century City Walk Entertainment Centre and the adjoining 200-room Novotel Melbourne hotel – on the market in Glen Waverley, one of Melbourne’s key growth areas. Located on a 10,308 square metre site on Springvale Road, the 8,403 square metre (GLA) Century Walk Entertainment…


Q1 2019 sees lower volume of office transactions despite peaking investor appetite

After a record-breaking run of sales in 2018, the Melbourne office investment market has started 2019 in a more restrained fashion, as transaction volumes dipped for the first quarter in the sub $150 million bracket of the sector. But it hasn’t been for lack of demand, as CBRE investor surveys reveal a major depth of…


Melbourne’s suburban office market takes centre stage in 2018

A hefty $722 million in larger suburban office assets of a total pool of $1.44 billion changed hands in Melbourne last year according to new CBRE data highlighting broader buyer demand and further yield compression. The CBRE figures relate to office properties outside of the CBD and St Kilda Road office markets valued at between…


East Melbourne office building provides the first test of Melbourne’s investment market for 2019

Pent-up buyer demand and a shortage of available, investment grade property has prompted the owners of an East Melbourne office freehold to list the property for sale. CBRE’s Melbourne Middle Markets division has been exclusively appointed to market 122-130 Wellington Parade following one of the strongest years for the Melbourne office market since 2008. CBRE…



Tightening vacancy rates in the Melbourne CBD and fringe office markets are driving increased activity in and around suburban office parks, with a flurry of recent leasing and sales transactions. A new CBRE review points to particularly strong activity in Melbourne’s east and south-east corridors, as highlighted by major sales in the Tally-Ho Business Park in Burwood East as one example.

Heightened investor and tenant confidence has also spurred a range of proposed development projects, including a mixed-used development at Burwood East on the China Bar site at 380 Burwood Highway.

The project, which recently received VCAT planning approval, will include office accommodation, several levels of residential apartments, improved retail amenity and a new China Bar restaurant.


Suburban office sales up 34% on 2017

Melbourne’s suburban office market is back in favour in no uncertain terms with local and offshore investors producing a turnaround in sales of nearly 34 per cent over the previous 12 months according to CBRE research.

Data from Research Analyst, Verity Jenkins, has revealed the number of properties sold in 2018 rose 52 per cent over 2017 while $ sales volumes lifted from $624 million to $836 million in the year to date.

State Director Melbourne City Sales & Middle Markets, Josh Rutman, said the suburban market had been the real surprise packet of 2018.


Pellicano and Camlen Property Group round out 2018 with off-the-plan Ringwood sale

A Macau-based private investor has pre-purchased an office development in Ringwood for $28,300,000 in a sign of the continued strength in Melbourne’s suburban office market.

The 60-62 Maroondah Highway project is 100% pre-leased to the Victoria’s Department of Treasury and Finance on a 12-year term.

It is being delivered by a joint venture between renowned builder/developer Pellicano Group and investment manager Camlen Property Group, with completion anticipated in May 2020.


News Corporation strikes sale and leaseback deal in Blackburn

The long-time Blackburn home of Leader Newspapers has been sold off market for $30,200,000 by parent company News Corporation.

The largely vacant, 1 Chapel Street office building has been acquired by a local fund manager in a deal negotiated by CBRE’s Melbourne Middle Markets team.


Local Asian buyers splash $200m in 10 weeks

The strong Asian interest in Melbourne’s sub $100 million commercial property market remains despite restrictions on off-shore Chinese investors with CBRE selling 19 properties worth just over $200 million to Asia-linked investors since the first week of July.

The purchases, which included an unknown off-shore finance component, were part of an extraordinary ten week period which saw 41 properties sell for more than $570 million including 277 William Street which fetched $93.88 million, 105 York Street South Melbourne, $49 million, and Leader Newspapers’ former Blackburn HQ, $30.2 million.


International buyer goes long on Melbourne office

An offshore Chinese investor has fought off several local and international groups to secure a Burwood East office building for $25.5 million in a record-making result for the Tally-Ho business park.

The buyer – a first time investor in Melbourne’s commercial property market – secured the 12 Lakeside Drive building after an international Expressions of Interest process managed by CBRE Melbourne Middle Markets agents Kiran Pillai, Scott Orchard, Josh Rutman, and Lewis Tong.

It represents the team’s eleventh transaction to a buyer based out of Asia in the space of eight weeks.

Opportunities at every stage of the cycle: Gurner

While the residential market faced numerous headwinds, not the least from the Hayne Royal Commission’s impact on the availability of housing finance, there remained real opportunities in the market, according to Melbourne developer, Tim Gurner.

Speaking at the sixth annual CBRE & Wingate client luncheon at Crown, Mr Gurner told the 450 attendees that there was no doubt the Royal Commission had inadvertently hurt the industry but there were always pockets of the market that would outperform others.


Chinese buyer pays $9.85 million for Hawthorn office

A Chinese investor has fought off a number of local rivals to snatch a Hawthorn office building for $9.85 million on a tight 4.78 per cent yield in an increasingly hot suburban office market.

The auction, through CBRE‘s Mark Wizel, Josh Rutman, Lewis Tong and Scott Orchard, drew a large crowd from which four parties put in 108 bids as the price raced past the former record to post a new building rate record for the area of $13,979 a square metre. The previous record had been the $10,578 a square metre paid for 1 Oxley Road in May.

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