Cremorne emerges as latest Victorian office hot spot
May 03, 2012
A hidden gem in the flourishing and sought-after Richmond area is emerging as Melbourne’s latest commercial property hot spot.
According to Rob Joyes, Colliers International Director in Charge, Melbourne East, the pocket of Richmond known as Cremorne was the location to watch in 2012.
"Cremorne may be a small postcode, but it is an emerging precinct,” Mr Joyes said.
“The pocket bounded by Church Street, Punt Road and the Monash Freeway has been a hive of investment activity in the first few months of the year and this is only going to continue as more people discover what it has to offer.”
Mr Joyes said several major properties hit the market in Cremorne in early-2012, including two significant buildings which were in the final stages of changing hands.
“The building which houses the headquarters of iconic Australian fashion label Country Road, 658 Church Street, is in due diligence in the vicinity of $30million,” he said.
“Nearby, 449 Punt Road – the five-level 6,369sq m home of leading automotive sales company Carsales.com Ltd – is also in due diligence, in the vicinity of $28million.
“These are substantial transactions not just for Cremorne, but for the metropolitan office market as a whole.”
Mr Joyes said interest in the small, unassuming precinct was rife, from private investors and institutional buyers alike.
“Cremorne is evolving into a dynamic office environment to rival any other city fringe location,” he said.
“The area is experiencing very strong rental growth and two of the most recent leasing deals in the precinct confirm its potential for future growth.
“1100sq m was recently leased at 101 Cremorne Street, Richmond to tenant Apparel 21 at $330 per sq m net; and IT company iView are consolidating from Hawthorn and St Kilda Road into 1100sq m at 658 Church Street.”
There were also several key development sites in Cremorne and Church Streets which were garnering strong interest from corporate tenants to pre-commit. This, according to Mr Joyes, would stimulate new construction activity in the precinct.
“As a suburb, Cremorne currently has the highest concentration of investment and leasing activity in metropolitan Melbourne,” he said.
“With its proximity to the Monash Freeway and Yarra River; abundance of public transport links and strong aesthetics overlooking affluent surrounding suburbs, Cremorne is in huge demand.”
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