Aston Pulse
E D I TI O N J U LY 2021
THE
THE ASTON PULSE
Contents 4
18
Who Are We?
Leasing
6
28
Market Update
Recent Highlights
8
30
Feature Suburb
Pulse Blog
10
34
Sales
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.
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Current Mood.
There is genuine positivity in the market in the first half of 2021. Buyers rallied with vigour as many had pools of cash that had not been invested due to the State of Victoria being in Government enforced COVID Lockdowns for the most part of 2020. As a result, buyer activity bounced back quickly in the investment and development sector. Investors are hungry for returns better than bank deposits and more stable than fluctuating share prices. Developers are gaining confidence as funding for projects has albeit, reactivated in some capacity. The demand coupled with less than normal supply has created a unique ‘bubble’ of activity and results. Leasing is somewhat more challenging as retail and office occupants reassess their tenancy requirements. Supply is increasing causing downward pressure on rents. The focus is to be more creative and invest more in marketing to generate tenant enquiry. Commercial Property Owners need to be prepared to offer incentives to secure the right tenant. One thing is a given, our Team will remain resolute in finding the best buyer and tenant for your property – regardless of COVID Lockdowns. Fred Nucara Director & Officer in Effective Control
The last financial year was certainly a roller coaster for the Property Management industry and our Team has certainly become more proficient in Tenant and Landlord negotiations and handling many Government COVID Lockdowns. The last year saw Lease Transfers jump to 40, Tenant Default Notices after 31 March 2021 spiked to end up at 63 and surprisingly close to 200 Lease Renewals were concluded. There is still a backlog of SBC and VCAT Hearings that are being handled by our office, however, the small tranche we are dealing with is probably a reflection of our Team being able to resolve matters in most instances. We have re-aligned ourselves and accepted the inevitability of COVID related Government Lockdowns. We are certainly better prepared. Marc Hayden Director & Head of Property Management
GOING... GOING...
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Feature Suburb. ST KILDA | 3182
20,230
34%
31%
Population
Independent Youth
Maturing & Established Independence
6%
11%
79%
House
Semi-detached/ Townhouse
Flat/Apartment
67.5%
22.7%
5.8%
Working Full-Time
Working Part-Time
Unemployed
*2016 Census REA
SUBURB PROFILE St Kilda has an unmistakeable holiday fizz in the air. There’s still a dash of grunge to be found but life in St Kilda really is one of urban bayside relaxation. Home to an eclectic cross-section of people, from backpackers through to elderly people who have lived there all their lives, plus many independant people in their 30-40s.
Here is a sample of what St Kilda and surrounds has to offer:
Prince of Wales Hotel Pontoon The Local Taphouse The Espy
Acland Street Luna Park St Kilda Beach Palais Theatre
Donovans Stokehouse Fitzrovia Ichi Ni
Trams Buses
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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..
10/13 Malvern St, Bayswater
View Tightly Held Vacant Office Warehouse This solid and impressive factory/warehouse is in the heart of Bayswater industrial precinct within easy access to the Mountain highway and the Bayswater train station. Including an office area, roller door, male/female amenities, kitchenette and 3 car parking spaces. Rodney King 0422 839 870
Fred Nucara 0418 567 560
• Occupy or Invest • Building Area: 250sqm* • 3 Car Spaces • Industrial 1 Zoning - IN1Z • Roller Door Access • Close to Public Transport
429 Bay St, Brighton
View Bianco Brighton – Brand New Commercial Space Five elite commercial tenancies, within the Bianco Brighton mixed-use development. Great ceiling heights and ample natural light make the space ideal for retail, office or studio accommodation. There is an opportunity to combine tenancies for larger floorplates.
• Only 3 Units left!
Jeremy Gruzewski 0422 211 021
• For Sale or Lease
• Part of mixed-use development ‘Bianco Brighton’ • 31 Car Spaces • Areas from 257sqm-260sqm* • Completion last quarter of 2021
Shop 2, 182 Johnston St, Fitzroy
View Flourish With Fitzroy’s Trendiest Investment This expansive corner tenancy is nestled beneath ‘The Rochester’ apartment building. This property is leased to the wildly popular indoor plant supplier, Botanica Collective. This is the perfect long-term holding investment with the security of a new 5-year lease with fixed annual increases.
• Established tenant in multiple locations
Liam Rafferty 0421 886 655
• Annual increases of 3.5%
Jeremy Gruzewski 0422 211 021
• Rental - $82,000 pa +GST • Lease Term – Five (5) year term with further option • Building Area: 198sqm* • Corner tenancy with great exposure
58 Pin Oak Cres, Flemington
View Be First Past The Post! Located in a tightly held retail precinct which stretches between Racecourse Road and Kent Street. Offered with vacant possession this property would make the perfect space for businesses seeking a secure home but also offers sensational scope for those looking to reposition the asset. Liam Rafferty 0421 886 655
Jeremy Gruzewski 0422 211 021
• Land Area: 171 sqm* • Building Area: 103 sqm* • Rear Access • On-site Parking • Commercial 1 Zoning – C1Z • Development Upside (STPA)
1068-1070 Glen Huntly Rd, Glen Huntly
View SOHO Cool! This incredible opportunity consists of a fully refurbished and renovated double fronted building in an area experiencing significant growth and development sitting proudly opposite Booran Reserve. Enjoy the income and the inevitable increase in land value the location is sure to provide. Jeremy Gruzewski 0422 211 021
Rodney King 0422 839 870
• New 5 Year Lease • Returning $160,000 pa • Superb Office Fit-Out • Commercial 1 Zoning (C1Z) • Contemporary Renovation
Fred Nucara 0418 567 560
593 & 595-599 Neerim Rd, Hughesdale
View Land Of Opportunity This infill redevelopment proposition has the benefit of three street frontages, a zoning that encourages residential development, proximity to Chadstone Shopping Centre and is positioned in a highly sought after and proven residential market.
• Massive 3,881sqm* Land Holding
Jeremy Gruzewski 0422 211 021
• Easy access to Hughesdale Train Station
Rodney King 0422 839 870
• Three Street Frontages • Suits a Multitude of Development Outcomes (STCA) • Proximity to the world-famous Chadstone Shopping Centre
Lot 307, 1 Princess St, Kew
View Vendor Says Sell! This is a brilliant opportunity for any small business looking for space in the Kew area. Located on the 3rd level provides awesome natural light. Featuring good layout of reception/seating area along with 3 professional rooms that have the flexibility for use as consulting rooms, office or meeting rooms. Josh Burne 0430 338 202
• Building Area: 46sqm* • Great Views & Natural Light • 1 Car Space • Perfect for Small Family Office • Ready for Immediate Occupation
Jeremy Gruzewski 0422 211 021
90 Nepean Hwy, Mentone
View Why Rent When You Can Buy? Suiting first time buyers or businesses looking to occupy their own space, this property is well suited to a host of future uses including retail, office, health & beauty or hospitality (STCA). The property boasts plenty of natural of light, flexible floor plan and modern wood floor finishes. Liam Rafferty 0421 886 655
Jeremy Gruzewski 0422 211 021
• Building Area: 90sqm* • 1 Secure Car Space • Prime Corner Position • Staff Toilets and Kitchenette • Zoned Commercial 1 (C1Z)
442-452 North Rd, Ormond
View Blue Chip Corner Investment This outstanding corner property is located in the highly desirable and affluent suburb of Ormond a mere 12 kilometres from Melbourne’s CBD. With 12 years remaining on an 18 year lease the asset provides a strong and secure income stream in a time when income has never been more important.
• Securely Leased Until 2032
Jeremy Gruzewski 0422 211 021
• Security of Income with definite upside
Liam Rafferty 0421 886 655
• Income of $450,000 net per annum • Tenant is a registered charity = LAND TAX EXEMPT • 2 Storey Building of 1,559sqm* • Corner Land of 1,651sqm*
1.02 & 1.03/15-87 Gladstone St, South Melbourne
View Industrial Style Office in Prime Location This trendy office space is located within the edgy ‘Industry Hub’ Building, a mix of creative and independent boutique operators. With only 2km to Melbourne’s Central Business District, the positioning could not be better to access the Monash Freeway and other major arterials. Josh Burne 0430 338 202
Sebastian Origlia 0428 056 294
• Building Area: 47-110sqm* • Take One or Take Both • North Facing Natural Light • Polished Concrete Floors • On-site Café and Gym Facilities • 1 Secure Car Park Per Unit (2 total)
17-19 Balmoral Ave, Springvale
View Income + Position + Potential = Golden Plaza Landmark value-add building in the highly sought Springvale activity precinct, The Golden Plaza. Currently a bustling shopping centre with significant income, the property has significant value-add potential through refurbishment, rental reversion or large-scale mixed-use development (STCA). Jeremy Gruzewski 0422 211 021
Fred Nucara 0418 567 560
• Freestanding two level building of 1,865.8sqm* incl 14 ground floor retail shops leased to quality tenants • Car parking for 47 cars* • Planning permit for a high-density mixed-use development • 2,968sqm* land holding with substantial corner frontage of 110m*
7 Windsor Ave, Springvale
View Land of Opportunity This significant site of 692sqm* is situated in the tightly held and highly sought-after Springvale Activity Precinct. The site is adjacent to the bustling Springvale retail district incorporating Springvale Road and Buckingham Avenue and only 350 metres from the Springvale Train Station.
• Occupy, Invest or Develop (STCA)
Jeremy Gruzewski 0422 211 021
• Flexible Commercial 1 Zoning
Rodney King 0422 839 870
• Premium 8 Level Development Site (STCA) • Land Area: 692sqm* • Frontage: 15 metres* • Springvale Activity Centre • Close to Public Transport
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 not about timing the market, it’s about time in the market.
258 High St, Ashburton
View High Street Hospitality Situated just metres away from Ashburton train station and surrounded by other amazing retailers such as Joe Frank Café, Chicken Central, Domino’s Pizza and Woolworths to name a few. This is a special opportunity for any food business looking to open their doors. Josh Burne 0430 338 202
Sebastian Origlia 0428 056 294
• Building Size: 118sqm* • F&B Ready! • Dwelling/Office Upstairs • Rear Access & Parking • Suits Variety of Uses (STPA) • Grease Trap
129 Thomas St, Brighton East
View Occupy Close to Home! This retail gem is located on bustling Thomas Street, this ground floor/1st floor property with generous rear access and parking, will suit a variety of tenants looking for a new premises in a thriving precinct.
• Building Area: 140sqm* • Mezzanine Level Space • Spacious rear yard • 3+ Car Parks • Kitchen and Amenities Included
Lucy Kuhne 0400 633 120
Sebastian Origlia 0428 056 294
10 & 11/1866 Princes Hwy, Clayton
View Take One or Both! This is a unique opportunity to be able to take one or both offerings in a fantastic location, which are also benefited by roller door access. With a light filled office fit-out, the properties would suit a multitude of businesses seeking to be located in this ever-growing location. Josh Burne 0430 338 202
Rodney King 0422 839 870
• Unit 10 - Building Area: 465sqm* • Unit 11 - Building Area: 330sqm* • Total Building Area: 795sqm* • 11 Car Spaces • Roller Door Access • Light Filled Offices • Suits Variety of Uses (STPA)
26-30 Rokeby St, Collingwood
View Modern & Stylish Offices With Views These stylish boutique office spaces are located just off Victoria Pde, moments away from the CBD. Just a short stroll to popular shopping strips in Smith & Victoria Street and benefiting from high speed internet, shower access and walking distance to public transport. Josh Burne 0430 338 202
Sebastian Origlia 0428 056 294
• Building Area: 70-140sqm* • Great Views & Natural Light • Kitchenette • Car Park On-site • Polished Concrete Floor • Split System Heating & Cooling
4/1008 Doncaster Rd, Doncaster East
View Your New HQ! Located within close proximity to the Eastern Freeway with easy access to the CBD. The property sits on the fringe of an established shopping precinct, which includes a variety of operators including Woolworths, Caltex, Jenny Craig, McDonalds and many more. Lucy Kuhne 0400 633 120
Sebastian Origlia 0428 056 294
• Building Area: 213sqm* • Staff amenities • Top floor space • Air conditioning • Multi-purpose use (STPA) • On-site parking for 6 vehicles • Large outdoor terrace space
5/4 Brisbane St, Eltham
View Accomodating Office and Warehouse Space Situated in the highly sought-after industrial area of Eltham, this warehouse and office space provides the perfect opportunity for a new or existing business to establish themselves. The property boasts great accessibility, high ceilings and close proximity to big retailers such as Bunnings, Repco & Bob Jane. Sebastian Origlia 0428 056 294
Josh Burne 0430 338 202
• Building Area: 120sqm* • Roller door access • Fit with bathroom and kitchenette • Provides both office and warehouse space • Suits a variety of uses (STCA)
5 Paran Place, Glen Iris
View Inner Suburban Office Warehouse This is an extremely unique offering in a fantastic location, which is also benefited by roller door access. With a brand-new office fit-out and new roof, the property would suit a multitude of businesses seeking to be located in this prime location.
• Building Area: 572sqm*
Rodney King 0422 839 870
• Good natural light
Josh Burne 0430 338 202
• Offices & Warehouse • Multitude of Options • Fully fitted offices at the front with kitchen & toilets • Motorised roller door access
286B Tooronga Rd, Glen Iris
View Brand New Creative Space Surrounded by trendy cafes and an abundance of Stonnington’s best retail boutiques, you will reap the benefits of this bright and modern space all while a hop skip and a jump from home. Featuring a brand new fit-out and unrivalled street presence. Lucy Kuhne 0400 633 120
Josh Burne 0430 338 202
• Building Area: 208sqm* • Beautiful high ceilings • Abundance of natural light • Blank canvas suiting a variety of uses • Includes amenities • Available now
406/89 High St, Kew
View Affordable Boutique Office The premises is located on the 4th floor and provides a great office for small businesses or service providers looking to take advantage of their own space. Benefiting from public transport at your doorstep and surrounded by a number of strip retailers. Sebastian Origlia 0428 056 294
• Building Area: 55sqm* • 4 individual office spaces plus waiting area/reception • On-site café and staff facilities • Good natural light • Views of Kew Junction
Liam Rafferty 0421 886 655
Suite 111B, 434 St Kilda Rd, Melbourne
View Boutique Private Office Situated in the prime office precinct that is St Kilda Road, this office space is neatly positioned on the 1st floor. Comprising of separate office spaces and a considerable amount of open floor space this suite offers flexibility for any and all tenants.
• Building Size: 78sqm* • High Profile Office Opportunity • Includes Kitchenette and Amenities • Central Heating and Cooling • Downstairs Café
Sebastian Origlia 0428 056 294
Lucy Kuhne 0400 633 120
63 Bond St West, Mordialloc
View High and Mighty With Crane This solid high clearance warehouse of 785sqm* features a gantry crane along with significant power. Ideally located just off Boundary Road with easy access to Nepean Highway, Dingley Bypass, Peninsula Link, Eastlink and the soon to be completed Mordialloc Bypass.
• 3T Gantry Crane
Rodney King 0422 839 870
• Good natural light
Josh Burne 0430 338 202
• Two level offices of 113sqm* at the front with kitchenette & toilets • High clearance warehouse of 622sqm* • Three (3) phase power • Bonus Rear Yard
1st Floor, 51 Grosvenor St, South Yarra
View This Creative Space is Calling! This fantastic creative office/studio space is located just off Chapel Street and is a short stroll to popular amenities including The Jam Factory, Prahran Market and Toorak Road.
• Building Area: 219sqm* • Affordable Price Point • Staff Amenities • Walking Distance to Public Transport • Separate Access
Liam Rafferty 0421 886 655
Josh Burne 0430 338 202
110 Acland St, St Kilda
View Bank On The Best! Ideally split over two levels the property has first class office accommodation including multiple rooms, balcony, bathrooms and functional kitchen space. Situated on a prime corner site in the midst of Melbourne’s iconic Acland Street.
• Building Area: 277sqm* • Unrivalled Retail & Office Opportunity • First Time Offered! • Suits a Variety of Uses (STPA) • Central Heating & Cooling
Josh Burne 0430 338 202
Rodney King 0422 839 870
165 Fitzroy St, St Kilda
View Turnkey Premier Opportunity Food & Beverage operators have a rare opportunity to secure this 305sqm* food and beverage venue which has been home to a longstanding successful business for close to 15 years. In a premier location in front of Albert Park and minutes from St Kilda Foreshore. Lucy Kuhne 0400 633 120
• Building Area: 305sqm* • Fit-Out Available • Unbeatable St Kilda Location • Main service areas plus function room at the rear
Suite 9 & 10, 322 St Kilda Rd, St Kilda
View Flexible Office Space | 192-384sqm* This well presented standalone office building with separate access from Pakington Street provides a flexible floor plate for new businesses. With the ability to occupy all as one or as a single floor, this modern and clean space must be considered and inspected.
• Combined Building Area: 384sqm* • Individual floors of 192sqm* • Up to 9 car spaces available • Boardrooms & partitioned offices • Fully Air Conditioned • Light & Bright Space
Liam Rafferty 0421 886 655
Shop 31/495-511 Burwood Hwy, Vermont South
View Prime Retail Opportunity Located in the high-profile Vermont South Shopping Centre, the tenancy is smack bang in the middle of all the established and wellregarded stores. Ample on-site parking and trams at the doorstep. Available now!
• Tenancy Area: 53sqm* • Fantastic condition • Surrounded by national tenants • High volume of passing traffic • Ample on-site parking
Lucy Kuhne 0400 633 120
Sebastian Origlia 0428 056 294
• Kitchen/store included
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Some Recent Highligh L O D S
37-39 Gap Rd, Sunbury
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262 Johnston St, Abbotsford
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37 Hope St, South Yarra
1419 Toorak Rd, Camberwell
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9 Gwynne St, Cremorne
2/544 Hampton St, Hampton
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42A/314-360 Childs Rd, Mill Park
472 Maroondah Hwy, Mitcham
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“The industrial sector has proven to be quite resilient over the past 12 months. The sector has been going through a significant transformation driven by the requirements of occupiers whilst attracting significant investment.” Rodney King Director of Agency
May 2021 was the second-highest month on record for both ‘Buy’ and ‘Lease’ searches on realcommercial.com.au, with Victoria, South Australia and Tasmania the standout performers. Buyer search volumes hit record heights in Victoria which recorded an 8% month-on-month growth. In Victoria, Queensland and Tasmania views per listings were more than double what they were in May last year despite the decrease in the number of active listings this month.
industrial and logistics floorspace of any Australian city. Traditionally Melbourne’s industrial floorspace was dominated by the manufacturing sector. However, this has been slowly declining over the past decade. In recent times, Melbourne’s growing port has helped to drive strong demand in the transport and warehousing sector, while food production and high-tech manufacturing has seen strong growth and led to a small resurgence in the manufacturing sector.
Warehouses are in high demand nationally, with the category recording the second largest year-on-year growth (98%) and a month-on-month increase of 9%. Victoria drove the demand in this category, with yearon-year growth of 129%.
The bulk of Melbourne’s industrial space is located in the South East followed by the West. The vast majority of stock in Melbourne’s industrial market has a floorspace with 1,000 square metres or less and accounts for approximately 74% of the number of Melbourne industrial properties. As a result of these structural changes supporting strong demand for industrial real estate, industrial remains the strongest performing real estate asset class in Australia.
Pressure is on the supply chains, as retailers seek to deliver merchandise to stores and more importantly direct to consumers homes. Consumer expectations have put increased emphasis on speed of delivery with expectations of faster deliveries. Occupiers are increasingly valuing proximity to the consumer to save time and cost. The net result is an increasing focus on inner city with immediate access to arterial roads. Melbourne has the greatest amount of
“We have seen strong demand for small to mid-size warehouses across the South East of Melbourne.” The Australian industrial and logistics market has broken a 24-year record in the first quarter
Aston Pulse - Blog.
of this year with gross take-up of industrial space tipping over a million square metres. Face and effective rents are increasing with Melbourne’s south east at 2.7%. In the industrial land market, growth in land values continue to be supported by strong levels of underlying demand and a scarcity of developable industrial land. Strong tenant and owner occupier demand is greater than the available supply, leading to upward pressure on land values, as developers seek opportunities to cater to the demand. Meanwhile, increased levels of development and rezoning in many suburbs, have led to a significant reduction in developable industrial land across Melbourne. Reflecting this declining state of developable land, land values in Melbourne have experienced significant year on year growth of more than 20% over the past two years. Based on current industrial stock levels, projections of Australia’s population to reach 27 million by 2023 suggest a further eight million square metres of industrial space will be required to meet the increased population with 1.3 million square metres currently under construction will likely fuel competition for both sites and existing assets. “Earlier this year Aston commercial successfully sold out a Mordialloc boutique development of 8 office warehouses in 6 weeks. Whilst at the end of March we auctioned four warehouses together in Oakleigh South that sold on a yield of 4.8%. We have seen yields compress with strong demand from buyers who traditionally looked for retail assets.” Rodney King Director of Agency
I have been happy with the service prov Commercial. Josh, our agent, listened t and concerns and worked productively suitable tenant for our Richmond prope and open communication was appreci always ensured we were well informed throughout the leasing process. I would Aston Commercial’s leasing services to property owner. Aston Commercial Client.
ovided by Aston to our requests y to find a erty. His regular iated. Josh d and updated d recommend o any future
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Your Aston Team. Melbourne’s leading, independent commercial real estate agency. We break cliches to deliver the results you deserve.
Fred Nucara Director & Officer in Effective Control 0418 567 560 fred@astoncommercial.com.au
Jeremy Gruzewski Director & Head of Agency 0422 211 021 jeremy@astoncommercial.com.au
Liam Rafferty Senior Sales Executive 0421 886 655 liam@astoncommercial.com.au
Josh Burne Leasing Executive 0430 338 202 josh@astoncommercial.com.au
Aston Commercial Level 1, 107-111 High Street, Prahran 03 8532 2222 astoncommercial.com.au
Rodney King Director of Agency 0422 839 870 rodney@astoncommercial.com.au
Marc Hayden Director & Head of Property Management 0412 592 849 marc@astoncommercial.com.au
Lucy Kuhne Leasing Executive 0400 633 120 lucy@astoncommercial.com.au
Stephen Fischl Associate Director - Property Management 0437 526 985 stephen@astoncommercial.com.au
*Approx.