Premium strata offices snatched by owner occupiers in prime Melbourne city fringe suburbs

Colliers see that sharp demand for premium grade strata offices has continued at the start of 2024, with a number of strong sale results of brand-new strata office buildings in Melbourne’s prime city fringe suburbs. These strong levels of demand are being driven by owner occupiers, making up 67% of the strata offices sold in 2023, and 71% in Q1 2024.

Premium-grade strata offices continue to be in demand from these occupiers as they look to stimulate new potentials for their business in a new light. Not only do they offer high standards in modern architecture, sustainability, technology, accessibility, and usage, but the boutique assets convey great experiences thanks to clever designs that enhance the quality work environment.

The scarcity of this emerging type of property at the current time confirms the high demand from owner occupiers and astute investors looking for stable capital investment. Colliers’ Director of Investment Services Ben Baines said that he believes owner occupiers will continue to be the leading buyer profile in the strata office market over the next 12 months.

“We have seen the trend continue where owner occupiers have looked to upgrade their office accommodation and move into brand new buildings within Melbourne’s premium city fringe suburbs such as Cremorne, South Yarra and Toorak,” Mr. Baines added.

The sale of Suite 4.01, Cremorne House 6 Adolph Street for $1.5 million to technology company Citysoft for a brand new 107 sqm with a terrace area is proof of this. On top of this, Suite 3.03 sold for $2.5 million for a 185 sqm office to Shades, a window furnishing company, who wanted to upgrade from their initial accommodation, and are soon to be moving from Auburn Road in Hawthorn.

Brokered by Colliers agents Ben Baines and Matt Knox, in conjunction with CVA’s Ian Angelico and Jarrod Moran, Cremorne House, developed by Wilmac, represents the newest strata office development in the area. The sleek, modern strata office building has recently reached completion with only eight offices left, anticipating the remaining offices to sell fast.

Colliers’ Senior Executive of Investment Services Matt Knox said that premium-grade strata offices located in prime Melbourne city fringe suburbs are encouraging workers to come into the office, by improving their working environment and relocating closer to retail, lifestyle and hospitality amenity.

An opportunity is now on the market on South Yarra’s tightly held Chapel Street precinct, Level 4, 667 Chapel Street. It is a fully fitted office with multiple meeting rooms, a large open plan area, a fully fitted kitchen and breakout area and exclusive bathroom amenities. Colliers’ experts from Instement Services Matt Knox and Ted Dwyer are managing the sale.

“This is the first time this property has come to market in over 6 years since it was purchased off the plan. This is a rare whole floor offering in one of Melbourne’s premier hospitality, retail and lifestyle precincts.”