Confidence in Buying Industrial Buildings
Following an extended marketing campaign due to the Victorian lockdown, Factory 1,50 Star Crescent, Hallam was auctioned on Friday in front of large crowd.
The modern industrial warehouse building comprised a building area of 415 sqm and was leased to a long-term mechanic tenant who was paying $31,830 plus gst and outgoings on a three year lease with a three year option. Dean Alexander of Gorman Commercial said the campaign generated over 80 enquiries with 6 groups bidding on the day resulting in the property selling for $810,000. $160,000 over reserve on a sub 4% yield. Dean Alexander said, “This demonstrates the strength and confidence of investors in the industrial market with currently low vacancy rates and most tenants paying full rent during 2020.” The property was purchased by a local investor.