Prime corner office building in Dandenong CBD sold for $3.8M

13 May 2024

Colliers and Cameron are delighted to announce the successful sale of 274 Thomas Street, Dandenong, a prime corner office building located in the heart of Dandenong CBD. The property, boasting 791sqm NLA and fully leased to four tenants, including Shine Lawyers, was sold for $3,800,000, representing a yield of 6.05%.

The private investor, who resides locally, was attracted to the property due to its fully leased status and its strategic position amidst significant infrastructure expenditure in the area.

Ben Baines and Ted Dwyer from Colliers, in conjunction with Cameron’s David Johnson and Michael Brennan, facilitated the transaction. Commenting on the deal, Ted Dwyer stated, “This corner office building presents a quality investment for the short term, with outstanding value-add/redevelopment prospects for the longer term.”

The current state of the market for city fringe and suburban middle markets offices has seen subdued activity from 2023 through Q1 2024. Only approximately $25 million worth of sales occurred, with an additional $33 million under contract. “Q1 2024 investment volumes of $25 million represent the lowest Q1 volume in well over 10 years. Owner occupiers have continued their dominance, accounting for 65% of middle markets office building purchases in Q1 2024 compared to 35% by investors,” said Ben Baines, one of the agents involved.

Despite market challenges, the campaign for the Dandenong office building garnered significant interest, with Colliers and Cameron facilitating over 75 qualified buyer enquiries.

In addition to the successful sale, Colliers also announced an upcoming sale campaign for a modern two-level office building in Canterbury, located at 15-17 Shierlaw Avenue. The property boasts a site area of 1,672m2 and a building area of 2,300m2, with 1,100m2 of vacant office space and 71 basement parking spaces.

“This property presents a sensational opportunity for an owner occupier and/or developers with a favourable Commercial 1 zoning,” said Ben Baines. “With immediate access to Canterbury Train Station and the Maling Road retail strip, it’s a prime location.”

The property will be for sale by Expressions of Interest, with the agents anticipating interest in excess of $10 million. The agents on this campaign are Alex Browne, Ben Baines, and Eddie Foulkes from Colliers.