One of the nation’s largest healthcare leasing transactions has occurred within Victoria’s high profile municipality of Glen Eira.
The CBRE Australian Healthcare & Social Infrastructure team has successfully negotiated a 30 year lease including options at 289-291 Kooyong Road, Elsternwick to longstanding local health services group – NEST Family Clinic. The deal represents what is significant and ever-increasing demand within the country’s premium health services market.
Marcello Caspani-Muto said “While demand for high-end healthcare services has never been stronger, we are beginning to see the property expectations of medical professionals increase. An environment conducive to the high-quality services provided has become an increased focus of many practitioners, who often accept creating this is best left to property specialists”.
“Experienced developers across the healthcare space have the ability and capital to achieve superior planning, design, and product outcomes. As a result, we are seeing an increased trends towards Medico’s outsourcing the real estate piece, whom are too time poor to turn their minds to property ownership or development”. Mr Caspani-Muto added.
CBRE’s Sandro Peluso added “The volume of demand from healthcare owner occupiers for leasing opportunities has increased markedly over the past 18 months with a shortage of stock available for acquisition. Market rentals are now being determined in greater detail than a simple rate per sqm formula”.
“Strong partnerships are being formed from the outset as operators work with developers and our team to complete thorough market assessments and demographic reports, in order to maximise performance. Business information is also shared to determine a serviceable rent based on EBITDA that is equitable for both parties”.
NEST Family Clinic is a multidisciplinary health service that helps both new and prospective parents make a smooth transition to parenthood. NEST is considered a pioneer within its field offering a full suite of services including GP, Psychiatry, Psychology, Physio, Nutrition, and Paediatrics.
289-291 Kooyong Road, Elsternwick is scheduled for completion by December-21 with construction currently underway, across two frontages to Edward Street and Kooyong Road.
With a commencing rental of $600,000p.a the property is leased for an initial term of ten (10) years plus four (4) further option of five (5) years each.
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