Owner-Occupier Secures Prestigious Canterbury Office for $9.25M

Strong demand from owner-occupiers drives sale amidst subdued market activity.

Colliers Ben Baines, Alex Browne, Eddie Foulkes, and James Zhuang are pleased to announce the successful sale of the office building located at 15-17 Shierlaw Avenue, Canterbury, approximately 9.5km from the Melbourne CBD.

The property was acquired by a technology business owner-occupier for $9,250,000, representing a land rate of $5,536 per square meter. It features an outstanding two-level office building with a total area of 2,211sqm and 74 basement car parks. It boasts an Excellent 5-star NABERS rating and was sold with the benefit of full vacant possession.

Colliers Director Ben Baines said, “The property was purchased by an owner-occupier who had been actively searching the market for approximately 18 months. This transaction highlights the continued strength and activity of owner-occupiers, particularly in Melbourne’s eastern suburbs.”

Mr Baines added, “We received over 85 enquiries for this in-demand property, with over 80% coming from onshore investors. The high level of interest underscores the strong demand for suburban

office buildings with exceptional car parking and excellent ESG credentials.”

The building, originally constructed in 1984, features lift access, existing functional fit-outs, outdoor terraces, and stunning outlooks to the adjoining parklands. It sits on a 1,671sqm lot within a favourable Commercial 1 zoning, which allows for a range of future uses. Located in Melbourne’s affluent inner-east suburb of Canterbury, the property also benefits from a strategic blend of accessibility, amenities, and prestige.

Alex Browne, Agent at Colliers, noted, “The seller, a local private investor, had owned the property for 13 years. This sale underscores the strong buyer profile of owner-occupiers for older-style buildings, typically under 3,000sqm, as they continue to dominate the market.”

In 2024, 50% of all office buildings sold for over $5 million have been purchased by owner-occupiers. This trend is a testament to the robust demand from owner-occupiers, who accounted for 61% of all transactions last year, significantly higher than the historical average of 30%.

“Despite subdued transaction activity, which is down approximately 56% year-to-date compared to long-term averages, the market for metro offices valued at $5 million+ remains active. So far in 2024, we have seen 19 transactions totalling $235 million, reflecting ongoing interest and investment in this sector,” Mr Browne added.