Ultra-rare retail investment opportunity in the prime of high- performing High Street, Armadale

Melbourne’s prime retail strip investment market is set for its next major test in 2023, with the offering of a shop in the heart of high-performing High Street, Armadale.

Fitzroys’ Chris Kombi and Lewis Waddell are marketing 1014 High Street, Armadale on behalf of a private owner.

Expectations are of $3 million-plus for the two-storey 140sqm building, which is on 208sqm of land with rear access and on-site parking.

It is located in the absolute prime section of High Street, Armadale near Kooyong Road and between Kooyong Road and Huntingtower Road.

The property is currently leased to Nimble Activewear and offered with a strong holding income, with the lease expiring in 2024.

“This part of High Street has 0% vacancy and there’s a number of local, national and international tenants looking for space in the prime of what has undoubtedly become one of Australia’s best-performing retail strips,” Waddell said.

“Rents have increased notably in the last 18 months, so there is excellent rental upside,” Waddell said.

The roll call of brands in this section of High Street includes Aesop, Dion Lee, Venroy, Mecca, Zimmerman, Rachel Gilbert and Oroton.

Kombi said, “It is ultra-rare to come across an investment opportunity in the absolute prime of one of Australia’s best-performing shopping strips. This part of High Street, Armadale is incredibly tightly held.

“Over the past 18 months, High Street, Armadale has been challenging traditional titleholder Church Street, Brighton for the reputation of Melbourne’s best retail strip.”

According to Fitzroys’ forthcoming Walk the Strip, vacancies in High Street, Armadale have tightened further from the improvement to 5.1% recorded in 2022.

Fitzroys has sold a number of properties in the past 18 months in varied parts of the strip, on sharp yields and very high land rates. These include:
• 1082 High Street for $3.235 million, on a 2.16% yield and land rate of $16,338 per sqm
• 720 High Street for $1.58 million, on a 3.2% yield and land rate of $11,791 per sqm
• 1272 High Street for $1.715 million, on a 4.3% yield
• 1208 High Street for $1.91 million, on a 3.9% yield
• 1147-1151 High Street for $$6.15 million, on a 2.7% yield and land rate of $14,500 per sqm

Meanwhile, in the absolute prime of Church Street, Brighton, Fitzroys is marketing 35 Church Street, with a renewed lease to long-standing tenant, major lender NAB, which will go to auction on Thursday, 27 July at 1pm. Expectations are of $6.7 million-plus.