Commercial land undersupply sees Geelong market remain buoyant

The market for sound commercial space in Geelong remains competitive as multiple buyers missed out in recent sales.

Colliers Geelong recently sold several key holdings that left many unsuccessful buyers keen to secure a commercial space, as the demand to do business in the region grows.

Colliers Geelong agent Chris Nanni said it’s clear there are still active buyers in the market after the string of recent industrial sales across Grovedale, Belmont, Breakwater and North Geelong.

“It’s a clear demonstration there is strong demand for both investment and occupied industrial stock with plenty of active buyers in the market.

“Competitive auctions at North Geelong and Grovedale have resulted in nine buyers still on the hunt to secure their next industrial asset.

This was the first time 4-6 Breakwater Road had come to market since May 1979; it sold for $1.61 million.

“While the buyer catchment remains predominantly Geelong investors and owner-occupiers, there is a surge of Melbourne buyers coming into the mix, making Geelong an exciting and competitive commercial property market.

“There continues to be an undersupply of built form industrial assets for investors and occupiers and a lack of land opportunity for construction.”

Two of Colliers’ sales were to owner-occupiers, who secured the properties at Breakwater Road, Belmont for $1.61 million, and at Bailey Street, Grovedale for $1.8 million, while 122 Victoria Street, North Geelong, sold for $3.7 million.

122 Victoria Street is located on a lucrative corner allotment of North Geelong with access to Victoria and Weddell streets, comprising 3,759sqm of Industrial 1 zoned land.

Mr Nanni said the property presented an outstanding development opportunity for the investor buyer.

“The Victoria Street site has been leased to Geelong Farm Supplies since 1989, but its Industrial 1 zoning coupled with exceptional visibility and street presence due to its frontage on both Victoria Street and Weddell Road gives it huge potential as a future development site.”

Colliers sold 110-112 Bailey Street, Grovedale for $1.8 million.

The dual roller doors, large warehouse and double driveway were the key attractions for the buyer at 110-112 Bailey Street.

The future owner-occupier is expected to take over the 1476sqm property offering building areas combining 796sqm over two levels once the existing lease expires in May.

The Breakwater Road Belmont property presents as a solid brick warehouse totalling 605 sqm on 973sqm of Industrial 1 zoned land.

This was the first time 4-6 Breakwater Road has come to market since May 1979, and the property has provided a secure and reliable investment for more than 40 years.

“Owner occupiers were the largest demographic among the bidders across the four assets, where the leases were either below market levels or, in the case in Grovedale, about to expire,” Mr Nanni said.