The momentum of Melbourne's office market may be set to continue throughout early 2019 after the announcement of a building for sale in East Melbourne.

CBRE’s Melbourne Middle Markets division has been appointed to market 122-130 Wellington Parade following one of the strongest years for the Melbourne office market since 2008.

The team of Josh Rutman, Mark Wizel, Lewis Tong and Kiran Pillai will manage the international expressions of interest campaign.

Mr Rutman said office investment transactions in the sub $100 million bracket were down significantly on previous years.

“We are currently fielding substantial demand both from domestic and international groups seeking a foothold in the Melbourne office market," he said.

"This has been propelled by the overall economic environment and the underlying fundamentals driving tenant demand, particularly in the inner city.”

Constructed in the 1960’s, 120-130 Wellington Parade has undergone several major refurbishments since.

The efficient floor plate design caters for a variety of configurations, with each level housing a range of high calibre office tenants, benefiting from outstanding views and natural light as well as amenities on each floor. 

Mr Wizel said the building's prestigious East Melbourne location was expected to be key buyer draw card.

“East Melbourne has benefitted from the flow-on effect of record low vacancies in the Melbourne CBD, with absorption and effective rent growth figures for the precinct among the strongest in the country,” he said.

"Forecasts suggest this significant rental growth will continue and provide near term rent reversion upside for assets such as 122-130 Wellington Parade, which offers an attractive, staggered lease expiry profile.”

The latest Property Council of Australia figures indicated East Melbourne had Australia’s lowest office vacancy rate of 3.1 per cent.

Mr Wizel noted that while domestic groups had been the most active investors in East Melbourne, the sale of the Park Hyatt to Chinese group Fu Wah and last year’s sale of the Pullman Hotel to iProsperity showed international players were beginning to target the precinct.

“Appetite for quality commercial assets from overseas parties, particularly from Asia, has defied all of the commentator predictions over the past 12 months, and our early read is that this is unlikely to change in 2019,” he said.

 Source: CBRE

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