Aston Pulse
EDITION | APRIL 2022
THE
THE ASTON PULSE
Contents 4
Who Are We?
6
Current Mood
8
Feature Suburb
10
Happy Easter
12
Looking to Sell?
18
Looking for a Tenant?
26
Recent Highlights
28
Market Update - Aston Pulse Blog
32
Your Team
Same isn’t a grea for the best resul Or for life. If you’re doing the same thing and expecting a different result, you’re bound to be disappointed. So, the saying goes. In fact, in today’s market, the key is deciding to push that bit harder and go that bit further.
at formula lts.
Aston Commercial is a different type of agent. A difference shaped by our history as a trusted generational advisor – and our commitment to embracing change. We do our homework first and talk second. We approach the market with imagination and flair that’s firmly anchored in experience — then we work hard. Success then becomes a logical outcome, not a fortunate windfall.
THE ASTON PULSE
Current Mood.
TIMING the market vs TIME IN the market There is a wonderful saying about timing the market and time in the market. The question we often get today is to pick the market because “it is too hot” or “it is going to collapse” leading to the inevitable “I will wait”. Let’s wait – why? Historically, the start of every decade is faced with economic challenges and time has proven that those that act now reap the rewards. The last 2 years has forced a reset, but there has never been a better time than now!
The time to act has never been better than now! Sale rates stalled throughout 2020 and 2021 as economic woes associated with the COVID Pandemic reverberated throughout the Commercial Property Market. We average 17 sale deals per 6 months back in 2019, which dropped to 11 sale deals (-35%) in the last half of 2020 (with zero sale deals for one quarter) and then eventually catapulting to 23 sale deals (109% jump) in late 2021. The lifting of COVID Lockdown restrictions essentially open the floodgates for commercial property buyers in all sectors where pent-up demand scoured the market and competed aggressively to buy. Keeping cash and remaining stagnant is not an option.
Emerging enquiry for vacancies is growing as business confidence re-establishes itself more consistently So how do we know? We looked at the second half (Jul-Dec) of the last 3 years. The COVID Lockdowns forced our vacancy rate to almost triple. From just over 1000 tenancies that we manage across Melbourne vacanies peaked at 112 vacant tenancies in early 2021. In fact, during the last quarter of 2021 (as COVID Lockdowns were lifted) a record 54 vacant properties were leased by the Aston Team – that’s about 50% of our annual leasing transactions completed at a rate of 4.5 deals per week. This trend is a combination of the return of business confidence, a reset of occupancy costs, implementation of innovative marketing and hard work. Vacant premises have been leased from rents at $42,000 pa to $262,000 pa and average enquiry rates for vacant properties has increased to 32 per campaign. Focus on decisions based on sound fundamentals with a medium to long term view. Best wishes for the year ahead. Fred Nucara Executive Director
The Government enforced legislation that forced Commercial Landlords to discount and defer rents/outgoings payments from existing Tenants was an attempt to manage a unique environment and accommodate small businesses during a COVID Lockdown. The Commercial Property Owners were expected to wear the financial impact with the view that Tenants will pay back deferrals in the future and goodwill will encourage longer lease terms from existing businesses. Today, Commercial Property Landlords are continuing to carry the financial burden post-COVID Lockdown. There has been no compensation for Commercial Property Owners and with statutory charges, such as State Government Land Tax, continuing to increase, combined with no relief to commercial loan repayments from banks, there will be an ongoing ‘heavy load’ that these owners will need to endure. Existing businesses now have a post-COVID trend of turnover and financial performance. Some of these businesses also have ongoing deferred rental and outgoing payments (enforced by Landlord-Tenant agreements required by legislation implemented during 2021) resulting in their total rent payments being 15%-25% higher. Commercial Property Landlords have had to endure the brunt of rental income loss and insignificant financial assistance by Governments. Whilst we are now in a post-COVID Lockdown era, the tensions and strain between Landlords and Tenants are still evident. Commercial Property Landlords have abided by the ‘enforced rules’ and are now seeking some form of rebalancing to payback many of the overheads of owning a commercial property such as statutory charges and interest payments. The financial lending institutions with Commercial Property Loans did not discount or waive any interest or principal repayments – but rather added to the repayments at the backend of a loan term. The stats for the first quarter of 2022 show an interesting picture of stability, albeit in a different paradigm than pre-COVID: Renewals: Lease Transfers/Assignments: Defaults Notices Issued:
43 businesses have decided to remain at their current location 6 businesses have sold their business and assigned/transferred their lease 30 (or over 60% for the YTD) have occurred once the TRS Legislation finished in March
Therefore, whilst we expect more challenges in achieving the right balance for our Commercial Property Owner Clients and Tenants who occupy their buildings, there is some solid foundation moving forward. For further discusssion, feel free to connect.
Marc Hayden Executive Director & Head of Property Management
THE ASTON PULSE
Feature Suburb. OAKLEIGH | 3166 Demographics
7,893
20.6%
14.9%
Population
Established Couples & Families
Older Couples & Families
Top Asset Types for LEASE in Oakleigh in the last 3 months
40%
27%
27%
Industrial/Warehouse
Retail
Office
Top Asset Types for SALE in Oakleigh in the last 3 months
60%
20%
20%
Retail
Showroom/ Bulky Goods
Industrial/Warehouse
Figures are approximate Sources: 2016 Census, REA, CRE
SUBURB PROFILE Oakleigh is positioned 18 km south-east of the CBD. This small suburb packs a punch when it comes to amenities. Offering a variety of outdoor dining and cafes, weekend markets and retail experiences, with excellent entertainment options. This suburb provides a mix of quality educational precincts, historical landmark attractions and strong public transport access to buses and trains. Enjoy the vibrant community, fantastic food and outdoor dining that Oakleigh has to offer.
Here is a sample of what Oakleigh and surrounds has to offer:
Hughesdale Pizza & Pasta Rosstown Hotel Overflow Cafe Wine Bar B4 Food and Wine Bar
Oakleigh Central Coles & Woolworths Oakleigh Gourmet Deli Eaton Mall
Brickmakers Park Warrawee Park Oval Oakleigh Recreation Centre Oakleigh Public Golf Course
Trains Buses
THE ASTON PULSE
Happy Easter Wishing everyone a Happy Easter. We hope you have a wonderful long weekend, enjoying time spent with family and friends. This year, whether you’re relaxing at home or traveling with the family, try your hand at some Easter egg activities to bring the family together. Easter is also a period of reflection and faith activities that draw family and friends together - regardless of your beliefs. Our office will be closed from Friday 15th April and will re-open on Tuesday 19th April.
From the Team at Aston Commercial
EASTER ACTIVITIES:
Easter Egg Hunt Who knew an Easter egg hunt could be fun and healthy? Easter is normally associated with chocolate and sugar highs, this year, try creating your own Easter egg hunt for all the family to enjoy.
View Activity
Arts & Crafts Have a go with this fun, inexpensive and easy craft idea and make yourself a nest of dip-dyed Easter eggs for a table centre piece or lesson in science and colour mixing.
View Activity
Easter Egg Shots This ones for the adults! Enjoy this deliciously simple recipe, guaranteed to get you into the Easter spirit (swap liquor for chocolate milk for a child friendly version).
View Recipe
THE ASTON PULSE
Looking to sell?
EXPERIENCE, HONESTY, INTEGRITY, KNOW-HOW - IT’S AN ASTON THING Selling with Aston Commercial means assuring yourself with a Team of passionate individuals driven to deliver you optimal results. Rather than resting on laurels, the Aston difference is to be in a constant stride towards better. We predict market trends, optimise promotions with the latest software to get the right people through your door, and give you the best possible, professional advice that is truly open, honest, and reliable. Together, Aston Commercial builds on years of industry experience and contacts to give you the service you deserve, with the greatest financial outcome.
...or buy?
Don’t wait to buy property, buy property and wait..inevitably you will reap the rewards
GOING... GOING...
GONE! 110-118 CHARMAN ROAD, MENTONE Sold at Auction for 15% above reserve price
176-180 Kangaroo Road, Hughesdale
View
Jump into This! Premium Corner Site of 1,533 sqm*
Combined frontage of 80 metres*
Multiple development outcomes
Sought-after location
Rodney King
Jeremy Gruzewski
0422 839 870
0422 211 021
Rodney@astoncommercial.com.au
Jeremy@astoncommercial.com.au
$
Leased for $60,770 p/a plus GST & Outgoings
450 Glen Huntly Road, Elsternwick
View
Stylish Freehold Investment Building Area: 98 sqm*
$
Secure lease returning $46,351 pa*
Premium main road location
Solid 2 storey freehold
Rodney King
Fred Nucara
0422 839 870
0418 567 560
Rodney@astoncommercial.com.au
Fred@astoncommercial.com.au
Rear access
29 Holloway Street, Ormond
View
Secure Strategic Play Building Area: 1,029 sqm*
Modern Block of 14 Apartments sold together
$
Potential fully leased income of $285,000 pa
Highly desirable location
Rodney King
Jeremy Gruzewski
0422 839 870
0422 211 021
Rodney@astoncommercial.com.au
Jeremy@astoncommercial.com.au
79 Arden Street, North Melbourne
Separately titled allowing future sell down
FOR SALE/LEASE
View
Ready, Set, Go! Building Area: 120 sqm*
Stone’s Throw From the CBD
Disabled Toilet & Shower
Only 50m* From Train Station
Sebastian Origlia
Jeremy Gruzewski
0428 056 294
0422 211 021
Sebastian@astoncommercial.com.au
Jeremy@astoncommercial.com.au
Suits a Variety of Uses (STCA)
2/204 Toorak Road, South Yarra
View
Built for Investment Building Area: 200 sqm*
Five (5) Year lease Term with further option
$
Returning: $79,567.50 Pa + GST
Five (5) car spaces on title
Liam Rafferty
Fred Nucara
0421 886 655
0418 567 560
Liam@astoncommercial.com.au
Fred@astoncommercial.com.au
67A & 67B Katrina Street, Blackburn South
Over 20m balcony with frontage to Toorak Road
FOR SALE/LEASE
View
Why Work From Home? Building Area: 45-55 sqm*
Newly built office ready for fit-out
One car space per unit
Suits a Variety of Uses (STCA)
Sebastian Origlia
Jeremy Gruzewski
0428 056 294
0422 211 021
Sebastian@astoncommercial.com.au
Jeremy@astoncommercial.com.au
Great for small business or firsttime investors
Looking for a tenant?
THE ASTON PULSE
SWIFT, THOUGHTFUL SERVICE – TRANSPARENT, OPEN COMMUNICATION You require an Agent and Team of support that not only performs with speed, initiative, and tenacity but who acts in your best interest. At Aston, we pride ourselves on thoughtful service that’s personal to you. Every client’s needs are individual to them, and that’s why no two services are ever the same. Our dedicated team remain open and transparent with you throughout the leasing process. Strong, consistent, twoway communication is imperative so, from us you can expect honesty, integrity, and a supportive Team you can lean on and has you top of mind, always.
...or to lease?
It’s about believing in the vision of your business and finding the right space..
148 Acland Street, St Kilda
$55,000 pa
View
Picture This! Building Area: 71 sqm*
Prime position amongst Acland Street
Rear storage/ workshop
Suits variety of uses (STCA)
Josh Burne
Rodney King
0430 338 202
0422 839 870
Josh@astoncommercial.com.au
Rodney@astoncommercial.com.au
165 Acland Street, St Kilda
Well connected to tram and bus network
$85,000 pa
View
Prime Acland Street Shop Building Area: 138 sqm*
Rear Access
2 Car Parks
Suits variety of uses (STCA)
Josh Burne
Lucy Pane
0430 338 202
0400 633 120
Josh@astoncommercial.com.au
Lucy@astoncommercial.com.au
Situated within the prime of Acland Street
243 Hawthorn Road, Caulfield North
$20,000 pa
View
Great Exposure without the Price Tag Building Area: 82 sqm*
Includes amenities
Heating/ cooling
Kitchenette
Suits a Variety of Uses (STCA)
Sebastian Origlia
Lucy Pane
0428 056 294
0400 633 120
Sebastian@astoncommercial.com.au
Lucy@astoncommercial.com.au
28 Glenferrie Road, Malvern
$36,000 pa
View
Ideal Retail Space in Heart of Glenferrie Road Building Area: 97 sqm*
Heating & Air Conditioning
Kitchenette
High foot traffic
Lucy Pane
Sebastian Origlia
0400 633 120
0428 056 294
Lucy@astoncommercial.com.au
Sebastian@astoncommercial.com.au
Surrounded by high profile tenants
751 Mountain Highway, Bayswater
$35,000 pa
View
Climb into Retail Building Area: 168 sqm*
Open floor plan ready for any fit-out
Close to public transport
Rear public and private parking
Sebastian Origlia
Lucy Pane
0428 056 294
0400 633 120
Sebastian@astoncommercial.com.au
Lucy@astoncommercial.com.au
95 Wellington Street, St Kilda
Suits a Variety of Uses (STCA)
$15,000 pa
View
Petite Suburban Retail/Office Opportunity Building Area: 21 sqm*
Suitable to a range of uses (STCA)
1 onsite car park
$
Affordable, entry level space
Sebastian Origlia
Lucy Pane
0428 056 294
0400 633 120
Sebastian@astoncommercial.com.au
Lucy@astoncommercial.com.au
Gentrifying and highly soughtafter suburb
578 Glen Huntly Road, Elsternwick
$90,000 pa
View
Glamour on Glen Huntly Building Area: 268 sqm*
Heating & cooling throughout
2 car parks
Great natural light
Close proximity to public transport
Josh Burne
Lucy Pane
0430 338 202
0400 633 120
Josh@astoncommercial.com.au
Lucy@astoncommercial.com.au
1/36 Chapel Street, Windsor
$28,000 pa
View
Fabulous First Floor Office Opportunity Building Area: 70 sqm*
Close proximity to public transport
Great natural light
Surrounded by Melbourne’s best eateries & cafes
Josh Burne
Sebastian Origlia
0430 338 202
0428 056 294
Josh@astoncommercial.com.au
Sebastian@astoncommercial.com.au
Suits variety of uses (STCA)
24 Chatham Street, Prahran
$80,000 pa
View
Charming on Chatham Building Area: 101 sqm*
Commercial kitchen provisions
Air conditioned
High foot traffic
Surrounded by high profile tenants
Lucy Pane
Sebastian Origlia
0400 633 120
0428 056 294
Lucy@astoncommercial.com.au
Sebastian@astoncommercial.com.au
106A Acland Street, St Kilda
$130,000 pa
View
Retail Ready! Building Area: 152 sqm*
1 car park
Rear Access
First time offered in 10 years
Josh Burne
Lucy Pane
0430 338 202
0400 633 120
Josh@astoncommercial.com.au
Lucy@astoncommercial.com.au
Suits a Variety of Uses (STCA)
8/1-3 Bromham Street, Richmond
$75,000 pa
View
You Can’t Beat Bromham Building Area: 187 sqm* split over two levels
Includes kitchenette and amenities
Fully air conditioned
2 car spaces
Lucy Pane
Sebastian Origlia
0400 633 120
0428 056 294
Lucy@astoncommercial.com.au
Sebastian@astoncommercial.com.au
5 The Mall, Templestowe Lower
Abundance of Natural Light
$65,000 pa
View
Macedon Square Marvel Building Area: 167 sqm*
ZONE
Commercial 1 zoning
Flexible layout
Ample Parking
Sebastian Origlia
Lucy Pane
0428 056 294
0400 633 120
Sebastian@astoncommercial.com.au
Lucy@astoncommercial.com.au
Suitable for a variety of uses (STCA)
THE ASTON PULSE
Some Recent Highligh L O D S
110-118 Charman Road, Mentone
L O D S
119-121 Hawthorn Road, Caulfield North
L O D S
8 Clare Street, Bayswater
L O D S
193-195 Glenferrie Road & 86-92 Union Street, Malvern
hts A SED E L
A SED E L
682 High Street Road, Glen Waverley
246 Brunswick Street, Fitzroy
A SED E L
A SED E L
351 Centre Road, Bentleigh
1/533 Highett Road, Highett
THE ASTON PULSE
Aston Pulse Blog. MARKET UPDATE - Q1 2022 “We are Melbourne’s leading independent boutique Commercial Agency that likes to break the clichés in Commercial Property by ‘doing things differently…and accepting that challenges come and go, but challengers don’t! Having just experienced 2 years of what can only be described as “challenging times” we begin to uncover some fascinating insights about the recovery moving forward”. Fred Nucara Executive Director
| ASTON PULSE | Q1 2022 |
“TIMING the market vs TIME IN the market”
“Those that act now reap the rewards” “Enormous pent up demand in all sectors”
“Why leave money in the bank for the pathetic return after fees” “Vacancy rates almost tripled during COVID lockdowns”
“Average buyer calls have doubled per campaign” “Being in the market with a long-term view is better than not being in at all”
TRUST PILOT REVIEW Marc and Jeremy were fantastic, they s rental property and went above and be Chris D.
sorted out my eyond.
THE ASTON PULSE
Your Aston Team. Melbourne’s leading, independent commercial real estate agency. We break cliches to deliver the results you deserve.
Fred Nucara Executive Director 0418 567 560 fred@astoncommercial.com.au
Jeremy Gruzewski Executive Director - Head of Agency 0422 211 021 jeremy@astoncommercial.com.au
Rodne Director o 0422 8 rodney@astoncom
Liam Rafferty Associate Director 0421 886 655 liam@astoncommercial.com.au
Josh Burne Leasing Executive 0430 338 202 josh@astoncommercial.com.au
Lucy Leasing E 0400 6 lucy@astoncom
Aston Commercial Level 1, 107-111 High Street, Prahran 03 8532 2222 astoncommercial.com.au
ey King of Agency 839 870 mmercial.com.au
Marc Hayden Executive Director Head of Property Management 0412 592 849 marc@astoncommercial.com.au
Pane Executive 633 120 mmercial.com.au
Sebastian Origlia Agency Executive 0428 056 294 sebastian@astoncommercial.com.au
Stephen Fischl Associate Director - Property Management 0437 526 985 stephen@astoncommercial.com.au
Eleanor Krix Senior Property Manager 0431 702 455 eleanor@astoncommercial.com.au
*Approx.
(03) 8532 2222 Level 1, 107-111 High Street, Prahran astoncommercial.com.au
*Approximate. All information is correct at time of preparation.