Positioned on a 4,097sqm landholding that offers 76m frontage to Tram Road, the property comprises a building area of 3,472sqm and 123 onsite car parks.
The freestanding building has a strong tenant profile, underpinned by government and national brand tenants, providing a diversified net income of approximately $1.2 million per annum.
Mr Orchard said Melbourne’s eastern suburbs continued to attract strong investment demand, fueled by the area’s ongoing growth.
“Melbourne’s recent and forecast population growth is a well told story, with this particularly evident in the inner eastern suburbs where there have been significant changes to the Box Hill and Doncaster Hill skylines in recent years,” Mr Orchard said.
“The residential population of Doncaster Hill has grown by 40% since 2012. With limited office accommodation in the area, there remains strong demand for available supply, which will positively position 90-96 Tram Road in the market.”
CBRE Director of office leasing Elise Betts, who has been leasing offices in Melbourne’s eastern suburbs for over a decade, commented: “2018 has been a year of increased tenant demand and activity for office accommodation through the eastern corridor. Positive rent growth is being seeing due to white collar employment growth and diminished supply in markets like Doncaster as a result of the recent residential construction cycle.”
The Tram Road property is being offered for sale with an existing planning permit for an eight-level development.
Mr White said the development potential would be a key selling factor.
“While the property operates strongly as an office, the significant underlying land value provides an attractive development opportunity for the future. Possibilities given the activity centre zoning and location include a new mid-rise office building, hotel, service apartments, healthcare, vertical retirement living or aged care, or residential (STCA).”
In recent years, Doncaster Hill location has continued to benefited from Melbourne’s rapidly growing population - as evidenced by the numerous residential and mixed-use projects undertaken in the past five years.
One of the most recent developments completed in area is Nest At The Hill – comprising 253 apartments over 11 storeys. One of the last remaining developable sites in the area, 9-11 Williamsons Road, recently sold for $13.8 million – representing a land rate of $5,184/sqm.
The property is being offered for sale via Expressions of Interest, closing October 5 at 12pm (AEST).
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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.