Aston Pulse
EDITION OCTOBER 2021
THE
THE ASTON PULSE
Contents 4
16
Who Are We?
Leasing
6
24
Market Update
Recent Highlights
8
26
Feature Suburb
Pulse Blog
10
32
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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Unprecedent times equals an unprecedented property market!
Current Mood.
Certain asset classes are flying with huge demand and extraordinary prices being achieved. Good examples are industrial properties, development sites and good investment opportunities. Some amazing results at record breaking levels have been achieved largely fueled by low interest rates, lack of supply and long-term views. Development sites as an example take years to get out of the ground and into the market so any pain we are feeling now will be a distant memory when marketing launches. On the other side we have retail and office leasing which has been massively hit with confidence smashed, spawned by business’s inability to trade and earn an income over what is nearing a two-year period. Property Managers, landlords and tenants grabble for what is a fair deal for all, so when we do get some clear air we can bounce back to normality. Short-term sacrifices and deals have been stretched a lot further than any party wants. Overall, commercial property has remained strong and values holding true. There is a lot of appetite in the sector although not a lot of urgency. The feeling is the urgency will return as soon as we have a clear runway in front of us. Jeremy Gruzewski Director & Head of Agency
We never stop learning. The experiences gained from last year’s Victorian Government Enforced Lockdown has not made the journey necessarily any easier this year for the Property Management Team. The current CTRS which is active until January 15th, 2022, sets the framework for rent relief between Commercial Landlords and Commercial Tenants. There are 74 pages of Rules and Regulations that stipulate guidelines and formula that may need to be applied. Obviously, last year’s CTRS allowed some improvements in procedural matters in the current CTRS which unfortunately, do not necessarily address the commercial reality aspects. Our role is to be the best in what we do and we have committed ourselves to gaining knowledge from the best law firms in Melbourne and sharing our current negotiations between ourselves to accumulate a simple pool of ‘choices’ for Client Landlords. It is certainly not a ‘one-size-fits-all’ strategy with Rent Relief discussions but rather a bespoke commercial negotiation for each of our 200 plus requests. We worked through it last year and we will do the same now. What we did learn was that post-lockdown, the market confidence and business activity bounced back, albeit amongst the hardships, and a new normal was established. It became a happier time for all of us. We will commit to remaining positive, yet measured. Marc Hayden Director & Head of Property Management
GOING... GOING...
GONE!
THE ASTON PULSE
Feature Suburb. MALVERN | 3144 Demographics
10,066
18.7%
14.5%
Population
Older Couples & Families
Established Couples & Families
Top Asset Types for LEASE in Malvern in the last 3 months
41%
38%
9%
Retail
Office
Industrial/Warehouse
Top Asset Types for SALE in Malvern in the last 3 months
44%
33%
22%
Office
Retail
Industrial/Warehouse
Figures are approximate Sources: 2016 Census, REA, CRE
SUBURB PROFILE Malvern is situated in the city’s south-east, less than 10kms from the CBD. The suburb is well-established with prestigious homes, beautiful parks, excellent transport and home to lively Glenferrie Road where you’ll find bustling cafes, delis, bookstores and boutiques.
Here is a sample of what Malvern and surrounds has to offer:
Tonic & Grace Cafe Etto Pasta Bar Sugo Restaurant Essie Wine Bar
David Jones Woolworths/Coles Chemist Warehouse Dan Murphy’s
Central Park Urban Forest Reserve Malvern Theatre Company Harold Holt Swim Centre
Trains Trams Buses
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..
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 - End of first quarter 2022
19-23 Easey St, Collingwood
View Buy, Build, Deliver! Located in the heart of Collingwood which is fast becoming one of the hottest commercial property markets in the country. With an outstanding permit over the site that provides for a commercial office development of 9 levels providing 2,954 sqm of NLA in desirable floorplates ranging from 150-436 sqm*. Jeremy Gruzewski 0422 211 021
Liam Rafferty 0421 886 655
• Approved permit for 9 level commercial office • Zoned Commercial 2 • Land Area of 672 sqm* • Holding Income of $110,000 pa* • Suits investors, developers and part or all owner occupiers.
140-146 Glen Eira Rd, Elsternwick
View Best of Both Worlds - Occupy or Develop This prime and iconic corner freehold building offers great opportunity for occupiers with office and loading facilities. Operating as a food manufacturing and retail facility there is significant infrastructure in place for a similar use or can be cleared to provide a relatively open floor plate.
• Land Area: 875 sqm*
Liam Rafferty 0421 886 655
• Prime location nearby Ripponlea Village & Ripponlea Estate
Jeremy Gruzewski 0422 211 021
• Building offered with Vacant Possession • Mixed Use Zoning – MUZ • Combined street frontage of over 62m* • Existing income from Telecommunications tower
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
643-645 High Street Rd, Glen Waverley
View Super Site This exceptional opportunity consists of a high exposure major corner site with a combined frontage of over 78m*. This secure investment is leased to national retailer Super Cheap Auto on a 4 year lease with significant future upside. It lends itself to Office, Bulky Goods Retail, Childcare or Allied Health. Rodney King 0422 839 870
• Investment with upside • Rent: $213,000 pa • Land Area: 1,974sqm* • Combined frontage of 78m* • High Exposure Corner Site
Liam Rafferty 0421 886 655
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)
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
4-6 Duke St, Windsor
View Be The King Of Duke If you are looking for new office headquarters and also a partially leased investment, then this could be ideal. Comprising of two levels, the property has a ground floor occupied by a fitness business on a long lease and a first floor ready for either owner occupation or to be re-let.
• Your new HQ in trendy Windsor with cashflow
Jeremy Gruzewski 0422 211 021
• Potential Rent: $178,300 pa*
Fred Nucara 0418 567 560
• First floor vacant ideal to owner occupy • Ground floor leased until 2024 plus options • Current Rent: $62,500 pa* • Total Building Area: 646 sqm*
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.
351 Centre Rd, Bentleigh
View Substantial Ground Floor Retail An amazing location, positioned in the heart of one of Melbourne’s strongest shopping retail strips, surrounded by major banks, retailers such as Priceline, Aldi, fantastic cafes and eateries. Only 50 metres to the new revamped Bentleigh Train Station. Josh Burne 0430 338 202
• Building Area: 100sqm* • Great incentives on offer • Rear access and parking • Suits variety of uses (STCA) • Brilliant Exposure
Sebastian Origlia 0428 056 294
1-6/11-13 Florence St, Burwood
View Selection of Brand New Office Warehouses 6 brand new office Warehouses in the tightly held Burwood industrial precinct. The front 2 warehouses have their own separate entry and remote controlled security gate. Each unit is approximately 250 sqm* with a mezzanine office featuring floor to ceiling windows. Rodney King 0422 839 870
• 6 Office/Warehouses • Each Unit 250 sqm* • Secure Remote Gated Entry • Motorised Roller Door Access • Ample Off Street Parking • Excellent Natural Light
285-287 Neerim Rd, Carnegie
View Two Exceptional Spaces Two brand new commercial tenancies within the Carnegie Place mixed use development, expertly crafted by Pitard Group. Due for completion in Q4 2021, now is the time to secure your next space. Liam Rafferty 0421 886 655
Jeremy Gruzewski 0422 211 021
GO1: • Building Area: 228 sqm* • Seven (7) secure car spaces • Suited for hospitality with food provisions incorporated GO2: • Building Area: 244 sqm* • Eight (8) secure car spaces • Suited to a variety of uses incl. Medical, Office and Retail (STCA)
233-247 Glen Huntly Rd, Elsternwick
View Elsternwick’s Premier Commercial Development Offering new commercial tenancies within the Elsternwick Village mixed use development. Positioned on prized Glen Huntly Road, presents a rare opportunity to be among the suburb’s beating heart. Due for completion in Q4 2022, now is the time to secure your next space. Liam Rafferty 0421 886 655
Jeremy Gruzewski 0422 211 021
• • • • • • •
Retail 1: 189 sqm* + 2 car spaces Retail 2: 200 sqm* + 2 car spaces Retail 3: 201 sqm* + 2 car spaces Retail 4: 267 sqm* + 2 car spaces Office 1: 366 sqm* + 7 car spaces Office 2: 393 sqm* + 8 car spaces Office 3: 837 sqm* + 17 car spaces
6/39-45 Susan St, Eltham
View Rare Eltham Industrial Opportunity 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.
• Building Area: 220sqm* • Includes mezzanine for office/storage • Flexible open plan space • Includes kitchenette and amenities • Container height roller door
Lucy Kuhne 0400 633 120
Sebastian Origlia 0428 056 294
• Exceptional exposure
93-97 Webb St, Fitzroy
View Ultimate Fitzroy Opportunity Substantial building located in the heart of Melbourne’s most sought after inner city location. In good but original condition the property boasts great office and warehouse accommodation.
• Land Area: 989sqm* • Building Area: 980sqm* • 3 Street Frontages • Commercial 1 Zoning • Metres from bustling Smith Street retail and entertainment precinct
Jeremy Gruzewski 0422 211 021
324 Auburn Rd, Hawthorn
View Awesome on Auburn This well located, versatile office-retail space is perfect for a business who thrives off excellent amenity at the touch of their fingertips, as well as quick getaways down the Peninsula with the Monash Freeway exit seconds away.
• Building Area: 75sqm* • Kitchen and amenities • Rear access • Great parking • Located on the bustling Auburn Road
Lucy Kuhne 0400 633 120
Josh Burne 0430 338 202
Unit 6 237-239 Boundary Rd, Mordialloc
View New & Affordable Warehouse This newly completed boutique development is prominently located on Boundary Road near the corner of Lower Dandenong Road. Featuring neat kitchenette and toilet, motorised roller door, modern glass entry, open plan mezzanine and off street parking. Rodney King 0422 839 870
Lucy Kuhne 0400 633 120
• Building Area: 185sqm* • Includes Mezzanine of 33sqm* • Motorised Roller Door • Showroom / Warehouse • Just 40 minutes from CBD
75-77 Errol St, North Melbourne
View Unique Opportunity Sitting just on the edge of the city, this former bank has been transformed into a vast open space with souring ceilings and an abundance of natural light. To the front is the original safe that with some clever thinking can be repurposed.
• Substantial double frontage • Significant retail/office • Building Area: 237 sqm* • Rear access & Off-street parking • Kitchen and bathroom facilities
Rodney King 0422 839 870
Josh Burne 0430 338 202
• First floor mezzanine
3/31 Izett St, Prahran
View Prime Prahran Office - Gross Lease The space is styled brilliantly with high concrete ceilings and brilliantly appointed kitchen & bathroom facilities. Situated directly adjacent to the newly developed Prahran square, with 500 parking spaces, Coles & Woolworths, and many other amazing retail operators. Josh Burne 0430 338 202
Lucy Kuhne 0400 633 120
• Building Area: 261 sqm* • Creative Styling • Impressive Existing Fit Out • Large Kitchen & Bathroom with Shower • Enticing rent and incentives are available
140 Commercial Rd, Prahran
View Prestigious Double Frontage Showroom Located within the impressive showroom corridor of Commercial Road is this large format retail/ showroom opportunity primed to put your business name up in lights. Featuring floor to ceiling façade windows, heating & cooling plus internal disability toilet. Josh Burne 0430 338 202
• Building Area: 171sqm* • Secure Car Park • Concrete Floors • Fully Self-Contained • Suits Variety of Uses (STPA)
Lucy Kuhne 0400 633 120
Lvl 2, 308 Toorak Rd, South Yarra
View Boutique Office on Prestigious Toorak Road Looking for an exceptionally presented office space in an amenity rich location and close to home? Then place your business here. Strategically walking distance to all your favourite eateries along Chapel Street! Boasting fantastic views, off-street parking & downstairs restaurants. Lucy Kuhne 0400 633 120
• Building Area: 148 sqm* • Light and bright first floor tenancy • High profile office opportunity • Flexible open plan space • Includes kitchenette and amenities • Central heating and cooling
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Some Recent Highligh L O D S
1102-1106 Dandenong Rd, Carnegie
L O D S
1068-1070 Glen Huntly Rd, Glen Huntly
L O D S
L O D S
93-97 Webb St, Fitzroy
909-913 High St, Armadale
hts A SED E L
17E Brougham St, Eltham
A SED E L
91 Darebin St, Heidelberg
A SED E L
3 Mount St, Prahran
A SED E L
176 High St, Kew
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Aston Pulse Blog. OUR TOP 5 LEASING OBSERVATIONS The commercial leasing landscape has changed dramatically over the last 18 months, here are our observations…
Tenant requirements are changing • Tenants are now thinking outside the box – due to tenants changing and adapting to our “new normal”, we are seeing more and more different uses entering the retail space given the growing increase in retail vacancy. • Suburban strip retail has seen an increase in activity due to the shift from the CBD with higher numbers of clientele now working closer to home. • Increased office demand in suburbs – Office tenants are now steering more towards properties surrounded by great amenities and leafy outlooks with parks nearby. • Companies are now offering more flexible working arrangements – The last 18 months have clearly outlined our ability to work successfully from home, many businesses are now taking this into account when considering the space they require.
Incentives • Due to the increased number of vacant commercial property available for lease, the method of enticing tenants to take up a lease has changed dramatically. • The amount of “incentive” requests, whether it be rent free, capital contribution or landlord works, has more than doubled in the last 18 months. • Increased incentive is with the intention of capturing a tenant for the property without reducing the rental value. • Incentive for properties requiring significant fit-out works is currently sitting between 30-40% of the value of the lease.
Presentation • • • •
Similar to the previous point, the way that properties should be presented has also seen a shift. A clean & clear space is largely what tenants are hoping to find when looking to lease. Tenants are now seeking properties that require less fit-out work required. Tenants are less likely to take on a space where they cannot visualise their business residing, despite incentives offered to renovate the premises once the tenant’s lease commences. • This means that basic presentation is a must – Flooring, painted walls, ceiling condition, wiring etc.
Video Walk-throughs, Professional Photography and Floor Plans • With the way tenants have had to view and inspect property dramatically changing over the last 18 months, so too has the way we advertise. • Tenants now more than ever, are wanting to view their properties of interest in a higher level of detail in order to shortlist these properties, and ultimately make their decision to lease. • Many tenants are now choosing to look past properties that do not provide clear professional photos and floorplans online. • Video walk-throughs and virtual tours are now being used heavily to give tenants a greater feel for the property without the need to physically inspect initially. • These virtual resources have allowed tenants to ‘pre-qualify’ properties before seeing them in person, reducing time spent inspecting an unsuitable property.
Post-Lockdown Activity • Exiting previous lockdowns, the Aston Team have seen a significant increase in activity due to a pent-up demand from tenants. • Leasing enquiry has remained steady across the year; however, it has greatly increased in the weeks following an easing of lockdown restrictions. • Our Team saw a jump in lease deals transacted of approximately 100% in the months post-lockdown in late 2020 and early 2021. • With one-on-one private inspections now being allowed for vacant properties we predict that we will see a large number of lease deals being transacted with business’ preparing for life in 2022.
As we move forward into “the new normal”, we expect clients and tenants to continue to find new ways to change and adapt in the Commercial Real Estate market. We look forward to seeing another burst of activity post-lockdown and expect demand in the suburbs to remain at a steady growth. The Aston Commercial Leasing team will work with owners to ensure their property is in the best condition to attract new tenants, while continuing to provide our high level of service. If you require any leasing assistance, please feel free to reach out to any one of us. Let’s embrace the “new normal!”.
Leasing Team. Josh Burne
Lucy Kuhne
Seb Origlia
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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Listen | Podcast.
FRED NUCARA Aston Commercial Director Fred Nucara recently spoke with the team at Ready Media Group to explore the re-bound of Melbourne’s commercial property market following recent lockdown periods. Have a listen here!
“Remember, the fundamentals have not changed. Postlockdown we learned some valuable lessons about commercial tenant and buyer behaviour - they rebound. Listen to find out why”
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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
Rodne Director o 0422 8 rodney@astoncom
Liam Rafferty Senior Sales Executive 0421 886 655 liam@astoncommercial.com.au
Josh Burne Leasing Executive 0430 338 202 josh@astoncommercial.com.au
Lucy K 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
Kuhne Executive 633 120 mmercial.com.au
Marc Hayden Director & Head of Property Management 0412 592 849 marc@astoncommercial.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.