The premises are just a street away from Club Dynamite’s long occupied - and much smaller - Mansfield home, which has a lettable area of just 600sqm.
It is one of three recent lease deals highlighting the strength of tenant interest in the very tightly held Mansfield commercial market.
“Club Dynamite had occupied the nearby building since 1993 and had been looking for a larger facility for some time,” Mr Blake said.
“Mansfield’s commercial precinct is tightly held and comprises just five small streets. Many of the occupiers have been there for 10 to 20 years building their businesses so when the time comes to grow it can take considerable time to find the right opportunity – being 18 months in the case of Club Dynamite.”
The new 10-year lease includes two, five-year options. It was secured off market in just a few days after CBRE introduced the opportunity to the club.
“I had been in close contact with the owner of 56 Secam Street for some time and he mentioned his tenant was planning on leaving the premises in six months’ time,” Mr Blake said.
“After just a few phone calls I spoke to the owner of Club Dynamite who told me that she has been struggling to find a larger site for 18 months. She inspected the property the next morning and by the end of the day the deal had been agreed, without the property ever hitting the market.”
The agreed rental is $156,240pa net + GST with 3% annual increases.
The deal has had a domino effect, with Club Dynamite’s former home at 2/4 Devlan Street quickly snapped up by martial arts gym Iron Fist. CBRE’s Jonathan Blake and Ben Lyons negotiated the five-year lease which includes a five-year option and was struck at a rental of $67,000 + outgoings and GST.
Mr Blake said the tenant canvassing for 56 Secam Street had also led to a third deal for a neighbouring property at 5/50 Secam Street.
“In the first 24 hours of the property being listed, we fielded multiple enquiries and organised two inspections for the following day. Both parties made offers and, after some negotiations, we secured a lease, just 48 hours after the property was made available,” Mr Blake said.
The 506sqm property was leased to Intergr8 Fitness Pty Ltd on a three-year lease with a three-year option at a rental of $70,000pa + GST.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.