The suburban office market thrived during the Covid pandemic as workers wanted to be closer to home, avoiding long commutes and crowded CBDs.
8 Nicholson Street, East Melbourne is one such suburban building. It sold recently for $213.7 million (valued at $205 million pre the pandemic). 8 Nicholson Street is an 18-level office building with three levels of basement parking for 87 vehicles and was built in 1991. The building has a net lettable area of 23,528 sqm and typical floor spaces of 1,650 sqm and is occupied by the Department of Environment, Land, Water & Planning. Having been in the Dexus stable since 1993, the building was bought by the Shakespeare Property Group, a Melbourne-based investor and property developer.
Cushman & Wakefield recently sold 88L at 88 Langridge Street in Collingwood for $70.7 million. 88L was completed late 2022 and is a nine-level office building comprising 6,000 sqm, including two ground floor restaurants, secured basement car parking over three levels and a recreation facility, floor plates of 1,000 sqm and a pedestrian link running through the commercial precinct known as Langridge Lanes.
88L was developed by Peregrine Projects, which also developed its neighbour, 23W, an office building of seven storeys, which was also completed late 2022. It comprises 2,000 sqm of office space and sold recently for $6.8 million. Both sites were bought together for just over $16 million in 2019.
CoreLogic Australia