The CBRE Australian Healthcare & Social Infrastructure team has just recently leased out 100-108 Ryrie Street Geelong to two prominent healthcare providers, Trans-Ax Health Care and Blooms The Chemist Pharmacy in two deals which Indicates strong confidence being placed in the sector and the forecasting growth of the healthcare asset class.
Located in the heart of the Geelong CBD the subject property will feature a total building area of 1,442 sqm across two levels. The leasing campaign were steered by CBRE’s Australian Healthcare and Social Infrastructure team of Sandro Peluso, Kai Wang, Jimmy Tat and Marcello Caspani-Muto.
“Both deals were finalised right after one another, demonstrating the strong synergy between GP and Pharmacy. Demand for healthcare assets as a whole remains strong as we are seeing operators rushing to secure the space.” Sandro Peluso Said
“Currently with a team of over 100 people across 7 medical centres, Trans-Ax Health Care has recognised the demand for high quality General Practice service within the community which has certainly increased post pandemic.” Mr Peluso Added
The City of Greater Geelong population is forecasted to increase by 124,232 from 268,984 in 2021 to 393,216 in 2041. Developers and investors have noticed the rapid increase in demand for new medical facilities with Geelong being at the focal point to become the biggest health hub in the west. Canada’s NorthWest Healthcare Properties REIT has recently partnered with Epworth Healthcare to deliver a $600 million innovation, education, and healthcare precinct in Victoria’s second largest city.
“To create the perfect harmony within the super clinic, we would also like to welcome Blooms The Chemist Pharmacy. Being one of the most reputable Pharmacy in Australia with an astonishing 100+ stores and a team of over 2000 team member, introduction of the new Geelong location will no doubt cater to the growing population by being situated on the high traffic Ryrie Street.” Kai Wang Said.
The main appeal for medical centre assets is its proven security and generous yield. Due to the works often required to build and fit out a custom space for a new operator, healthcare assets typically offer a longer lease term than more traditional asset classes with a typical minimum of 5-10 years with 15 years + lease term not unusual.
“To secure a high quality operators like those mentioned above, owners will often provide substantial incentives such as fit-out contribution or rent free period to relieve stress on the new tenant while they work on gathering new patients.” Kai Wang Added.
Sandro Peluso Said “ Over the past six months we have had an overwhelming amount of conversations with healthcare operators all over Australia discussing expansion opportunities due to the exponential growth they are experiencing over the last year.”
With limited spaces remaining, the centre is expected to be fully occupied very soon. Any interested parties are urged to contact the agent directly.