Industrial Development Site Sold in Mitcham
Gorman Commercial closed an Expression of Interest campaign for the sale of 8-10 Monomeeth Drive, Mitcham which sold for $2,821,289. The land area of 5,281 sqm initially created interest from owner occupiers keen to build and developers looking at building small office warehouses and selling or leasing them to a market that has had little opportunity to purchase or lease new property since the GFC. There has been so little development due to tighter credit availability and sale and lease prices not being at the levels to justify these projects.
It seems now with money being cheaper for prospective buyers and those buying end products, developers are moving fast back into the market.
Stephen Gorman of Gorman Commercial was pleased to see the calibre of developers, commenting, “For so long, we have seen the Chinese developers being aggressive in the market for mixed use sites and making it harder for local developers, although industrial sites have brought out seasoned eastern suburban developers who on many cases haven’t been in the market for nearly ten years. We even had expression of interest from one well known Sydney developer seeing value in the eastern suburbs of Melbourne.”
Stephen Gorman also believes that we will see a noticeable demand for smaller office warehouses, as supply is either significantly reduced due to mixed use development or dated buildings that are not suitable for business requirements in 2016.