Cheltenham Industrial Site Sold Off-Market for $14.75M

​​Colliers and DBRE facilitate strategic acquisition as buyer eyes future expansion on low-coverage site.​ 

In a standout off-market transaction, a significant office/warehouse facility at 19 Hewitt Street, Cheltenham has sold for $14.75 million, reflecting the ongoing demand for quality industrial assets in Melbourne’s south-east. The asset comprises approximately 12,300sqm of land and 4,000sqm of built space, situated within one of the last major Industrial 1-zoned landholdings in the tightly held Cheltenham precinct. 

The deal was facilitated by James Davie of DBRE alongside Gordon Code and James Stott of Colliers, who jointly identified the ideal match between a motivated vendor and an active, qualified purchaser. 

James Davie DBRE represented the vendor, a local owner-occupier, opting to sell in order to recycle capital into another part of their business. The purchaser, a national owner-occupier, was drawn to the site’s unique features, including full fire sprinkler coverage and notably low site coverage, offering significant scope for future expansion. 

“We were working with an interstate purchaser under a specific mandate to secure a high-quality industrial asset in Melbourne’s south-east,” said Gordon Code, Colliers. “The combination of rare site fundamentals and future upside made 19 Hewitt Street a compelling acquisition.” 

James Stott of Colliers added: “Opportunities of this scale and zoning in Cheltenham are extremely scarce. The success of this off-market deal demonstrates the power of well-aligned buyer strategy and local market intelligence.” 

Despite broader softening across metropolitan Melbourne, the Bayside industrial market is experiencing record-low vacancy. Of nearly 350 buildings in the precinct, only six are currently vacant, five of which are under offer or agreed terms, leaving an effective vacancy rate of just 0.2%. This contrasts sharply with other parts of the city, where vacancy is on the rise. 

“With such limited supply, we’re still seeing strong capital and land value benchmarks being achieved, especially from owner-occupiers with long-term operational needs,” Gordon Code noted. 

The South East continues to offer compelling opportunities for both vendors and occupiers and this outcome is a testament to how a targeted off market approach can deliver an outstanding outcome for all parties.

*All figures are approximate and outlines indicative only.