Porter Commercial Sell Suburban Office Building for $2.4m
Porter Commercial successfully negotiated the sale of a suburban office building in the heart of the Belmont Shopping Centre Precinct. The team at Porter Commercial recently sold 165 Wright Street, Kewdale, for $2.4 million to a private disability services provider who was looking for a centralised office building.
The selling agent Cameron Porter states: "The client wasn’t necessarily looking primarily in the Belmont locality, however accessibility, car parking and nearby amenities were very important factors, which are all provided in this precinct. Being a disability services provider, disabled access was a crucial factor in their decision to pursue a more modern product which caters to these needs. One tenant remains on the ground floor, which was perfect for the buyer as the first floor office area is ample for their immediate needs. They will take advantage of the existing income to cover major items such as rates, taxes and insurance whilst retaining flexibility to expand in the future should they require"
The office building is located at 165 Wright Street and is a modern two-level office building. It is situated on the corner of Wright Street and Knutsford Avenue in the Belmont Forum Shopping Centre Precinct. It is metres from the Belmont Forum Shopping Centre and Reading Cinema complex. The site is a 900sqm corner block and the building has an area of approximately 730sqm. There is lift access and well-appointed amenities to both levels, as well as 19 secure car bays.
This transaction follows a common trend of businesses taking advantage of owner occupation as opposed to renting. Interest rates remain at highly affordable levels which creates a general feeling that the commercial market has recorrected. Many potential buyers feel the time is ripe for securing a premises for the long term.
"In many circumstances, we are finding that buyers are able to finance a property with interest rates at similar levels to rents. This also allows them to secure an asset and take advantage of future capital growth as the market improves."
"From the seller’s perspective, this property was developed and constructed in 2014 as an investment; subsequently, the property was fully leased to provide a source of income. However, over recent times, with a slump in the office leasing market, the majority of leases within the building have expired and businesses have relocated. Finding new tenants was the client’s preferred direction, however the recent possibilities with the active owner-occupier market provided an immediate exit opportunity. Inevitably, re-leasing the premises at the current discounted rents would force the owner into a further long term hold".