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3 Strata Retail Shops Sold in Glenferrie Road

Gorman Commercial’s Stephen Gorman and Stephen Speck have sold three individual strata shops in Glenferrie Road, Hawthorn with a combined value of $4.11 million.  The shops at 769 Glenferrie Road which were sold on an average yield of 4.25%, were sold to three astute investors seeing value in strata retail spaces while looking past the stigma that usually comes with purchasing into owners corporations.  Stephen Gorman said, “Many buyers are told to stay away from strata properties, but when bought properly in low vacancy areas with scope for rental growth, they can be extremely positive investments.  In a time when we are seeing stand-alone retail in the same strip sell on yields less than 3%, smarter buyers are acknowledging the fact that retail tenants no longer have a use for first floor dwellings and offices.  Tenants are willing to pay premium rents for modern shops without having to pay for unusable first floor space, as they sometimes find with the older style shop and dwelling.  The large majority of these modern retail spaces are strata titled and will continue to seek premium rentals for their favourable layouts and condition.”

The Age, Business Day Market Wrap, Published by Simon Johanson