Industrial unit in high demand sells for $190,000 over reserve

A Clayton South industrial unit has sold under the hammer for $750,000 – $190,000 above reserve.

Located at 65/266 Osborne Avenue, the 242sqm building comprises warehouse and first floor office space and sold for a blended $3,099 per square metre.

The property received a lot of interest prior to auction, with more than 70 enquiries and 34 contract requests.

There were 40 attendees at the onsite auction on February 24, with 10 registered bidders and seven active bidders with the winning bid going to a local investor.

The property was marketed by Ray White Commercial Oakleigh agent Theo Karkanis on behalf of a private local investor.

“The footprint of 220sqm plus small first floor office was very appealing given the current shortage of supply we are experiencing with regards to industrial warehouses in the southeast of Melbourne,” Mr Karkanis said.

“Eighty per cent of enquiries were from owner occupiers, which reiterates the strong interest the market has for this asset class, with demand heavily outweighing supply.

“Interestingly, the vendors sold the unit next door via auction with us only 10 months ago for $560,500, which was basically identical with an extra car space, that in itself is reflective of the unprecedented demand for industrial properties in the southeast.”

The building’s tenant was the eventual underbidder, just missing out on securing the property even though they extended their position a further $140,000 from their initial bid.

“The buyer seemed to be open to negotiating a new lease with the current tenants as the purchase price reflected a yield of 3.53 per cent based on the current periodic rental which is a record for this business park,” Mr Karkanis said.

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