Blast off for strata sphere

SELF-MANAGED super funds are becoming important players in the CBD strata office market.

The trend was shown by a recent sale of a 120-square-metre office floor within 313 Little Collins Street. It sold for $565,000, reflecting a rate of $4700 per square metre.

The vacant, fully self-contained whole third floor was bought by a local owner occupier, who acquired the property through his self-managed super fund. CBRE city sales agents Tom Tuxworth and Ed Wright negotiated the sale on behalf of Fenton Design Group Architects, which had occupied the space since 2006 but recently relocated.

Mr Wright said Melbourne’s  market continued to mature as both owner-occupiers and investors learnt more of the benefits of buying strata offices in the CBD.

The strata office investment market was further fuelled by new regulations in self-managed super fund (SMSF) buying, making smaller commercial purchases attractive to mum-and-dad investors.

”We have seen a growing trend in this form of purchasing, and one that we still feel has further growth potential as education on SMSF buying grows,” Mr Wright said.

Around the corner in Collins Street, Colliers International has hung the ”no vacancy” sign at a boutique building after the landlord undertook a big refurbishment.

Adam Davy, Colliers office leasing executive, has leased the remaining floor at 278 Collins Street. Mr Davy said the building leased quickly once the refurbishments were completed. ”Tenants are more educated than ever about the state of the market and the options available to them, about the terms on offer across various properties, so it’s important for landlords to present their space to them in the best light,” he said.

The latest lease for the whole of Level 2 (332 sq m) at 278 Collins Street came after Mr Davy negotiated similar leases for Levels 7 and 8 in the same building recently.

By Phillip Hopkins

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