Development site in evolving city fringe precinct sold for $5.9million

14 March 2023

Colliers has sold a sought-after development opportunity located in a rapidly evolving commercial pocket within Richmond for $5.9 million, representing a land rate of $6,441sqm.

Colliers’ Ted Dwyer, Ben Baines and Alex Browne handled the sale of the 916 sqm site, well-suited for multi-storey office development, on behalf of a private owner.

Colliers’ Director of Investment Services, Ted Dwyer, said the vacant allotment received over 60 enquires during the campaign, mainly from land bankers and developers before local buyer Michael Spektor of National Retail Group secured it.

“109 Palmer Street is situated within a desirable fringe location currently experiencing significant levels of planning and development activity.

“The presence of major property players such as Salta, Vicinity, Gurner, MAB and Manor Property Group will further drive the heightened demand and a positive rejuvenation of the precinct, which has predominantly consisted of older-style industrial facilities,” said Mr Dwyer.

The city fringe is an extremely active office market having made up 44% of office sales in excess of $5m for 2022. The immediate precinct in Richmond issurrounded by many approved development projects with major retail amenities and just 3km from Melbourne CBD.

“The city fringe commercial market has proven exceptionally resilient with developers and land bankers actively seeking sites, driven by the plethora of leasing activity in the fringe, particularly Richmond and Cremorne. Large tenants, such as AusPost, have been committed to new buildings, providing confidence to developers with new leasing deals now nudging net $700/sqm,” said Ben Baines, Colliers’ Director of Investment Services.