A series of significant deals shows the Belmont commercial property market is on the move, according to Ray White Commercial WA.
Four properties have been sold in recent months in the suburb, 7km east of the Perth CBD, including one — a 443sqm strata-titled office warehouse at Unit 5, 32 Robinson Avenue — that had been on the market for about a year before selling for $750,000, says Chris Matthews, of Ray White Commercial WA.
Another 755sqm strata-titled office warehouse sold for $1.2 million before it even hit the market and, after three months of marketing, a 475sqm building at 81 Abernethy Road, pictured, sold for $960,000.
The fourth property, a 997sqm parcel of land with an older-style office-warehouse at 153 Francisco Street, has been placed under offer for an undisclosed sum, Mr Matthews says.
“These deals are a positive sign seeing that buyers’ confidence has increased and they are now willing to transact,” he says.
“What’s interesting is that all properties were sold to owner-occupiers who aren’t necessarily basing their purchase price on the underlying yield and have therefore paid slightly more than an investor would have.”
As well as sales activity, activity has increased in commercial and industrial leasing.
Mr Matthews says lease deals include office warehouses ranging in size from 500sqm to 1100sqm along with office tenancies mostly in the sub-350sqm space.
An example of a significant recent lease was 1208sqm of office space at 1-9 Tanunda Drive, Rivervale, for a five-year term.
“Given the surplus parking available we identified an alternate use other than just office and structured the marketing towards the training and education sector,” Mr Matthews says.
“We secured Amana Living as a tenant who are now using it for their new training facility.
“It was a great outcome for the owners. In the current climate it’s not easy sourcing a tenant for a 1200sqm floor plate in the suburbs.
“The key is looking outside the box and seeing what other uses could work for buildings.”