The off‑market sale of 312 Melbourne Road comes as national large format retail vacancy tightens to 2.8 per cent, intensifying competition for well‑located assets.
A prominent large‑format retail asset at 312 Melbourne Road, North Geelong has transacted off‑market for $5.723 million, reflecting a 5.24 per cent net yield in a deal that underscores investors’ growing appetite for quality, well‑located commercial property.
The highly‑exposed freehold property, situated on a 3,144sqm landholding, is surrounded by major national brands including Supercheap Auto, Tyrepower, Kennards Hire and Beacon Lighting, was sold to a local investor. The asset is fully leased to Sydney Tools until May 2026, returning approximately $320,000 per annum gross, and includes 21 on‑site car parks and valuable rear access.
Colliers managed the off‑market campaign following a series of strong results in the tightly held precinct, where only 12 properties form the retail strip and demand continues to outpace supply.
Ned Tansey, Senior Executive at Colliers, said, “Investor interest in high‑quality, main‑road assets remains exceptionally strong, particularly in locations where vacancy is low and national retailers continue to expand. This pocket of North Geelong has seen sustained absorption from large‑format operators, and that confidence translated directly into the level of enquiry and the ultimate sale outcome.”
Chris Nanni, Senior Executive at Colliers, added, “There is a clear flight to quality in the current market, with investors prioritising properties that offer strong tenant covenants, excellent accessibility and strategic positioning. With limited opportunities of this calibre becoming available, assets like 312 Melbourne Road continue to attract competitive interest and deliver impressive build‑rate benchmarks.”
According to Colliers latest Large Format Retail (LFR) Insights report, national LFR vacancy has fallen to just 2.8 per cent, one of the tightest levels on record, with demand outstripping supply across nearly all major precincts. Limited new development, with only 600,000sqm of new LFR floorspace expected to be delivered nationally over the next five years, is amplifying competition for well‑located assets.
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