Entry-level Melbourne CBD retail investment heads to auction

Melbourne's revival of CBD retail investment is set to be tested with an entry-level retail holding opposite Flinders Street Station expected to attract private investors seeking secure income and long-term exposure to one of the city's busiest pedestrian corridors. 

Shop 6, 2 Queen Street, Melbourne is being brought to market via public auction, offering a rare sub-$1 million investment opportunity underpinned by a long-standing tenant and prominent frontage to Flinders Street. 

The 37.2 sqm* ground-floor retail premises is securely leased to Melbourne Health Gifts, a retailer that has traded successfully for more than 25 years, generating annual rental income of $50,000 plus GST and outgoings. The property also benefits from an expansive 9.8-metre frontage directly opposite Flinders Street Station, placing it at the centre of one of Melbourne's highest foot traffic locations.  

Positioned moments from Elizabeth Street and surrounded by major retailers, hospitality operators and the new Metro Tunnel network, the asset offers investors exposure to a growing mix of office workers, students, residents and tourists returning to the CBD and is for sale through Jack Cooper and Valerie Tang of Cushman & Wakefield.  

Jack Cooper of Cushman & Wakefield said the campaign was expected to attract a broad range of private investors looking for accessible entry points into Melbourne's CBD retail market. 
"We continue to see strong demand for well-located retail investments below the $1 million price point, particularly from private investors, self-managed super funds and first-time commercial property buyers seeking secure income and long-term capital growth. 

"Assets with established tenants, manageable lot sizes and exceptional pedestrian exposure remain highly sought after because they offer an affordable entry into tightly held CBD locations" he said. 
Valerie Tang of Cushman & Wakefield said the property's location and defensive income profile would resonate strongly with the market. 
"Retail opportunities directly opposite Flinders Street Station are exceptionally limited, particularly those offering secure income from a long-standing tenant and such prominent street exposure. 

"The combination of a renewed lease, strong daily foot traffic and one of Melbourne's most recognisable CBD locations creates an investment proposition that is difficult to replicate at this price point" she said. 
Shop 6, 2 Queen Street, Melbourne is being offered for sale via public auction at 12pm (AEST) on Wednesday 9 September through Cushman & Wakefield.