Kingston Foreshore sale reflects hot end to Canberra's commercial year

A hot commercial market looks like it will keep pushing the mercury all the way until the Christmas and New Year break if a recent Kingston Foreshore sale is a gauge.

The 197-square-metre Chase Building Group waterfront office in the Element Building at 41 Eastlake Parade was sold before auction for $1.9 million.

Burgess Rawson managing director Guy Randell says the building’s listing drew some 50 enquiries with eight offers tabled before the auction.

“It finally went to a Sydney investor who came down to negotiate and was adamant he wasn’t leaving until he’d inked a deal,” Randell says.

“The vendors are over the moon.”

The sale puts the price at around $9650 per square metre with a yield of 5.17 per cent.

“It’s set the benchmark in the Kingston Foreshore location as it’s the first waterfront office to resell,” Randell says.

The Burgess Rawson managing director says the price was comparable with the cost of space that was being realised in major state capitals like Sydney and Melbourne.

“I think it demonstrates interstate investors are now recognising the advantages of holding premium properties in Canberra,” he says, while also acknowledging the contribution of the auction system as another key factor in highlighting local commercial properties.

“And this one was special – a quality building with a waterfront location that can’t be built out and a solid 10-year lease.”

The space is currently tenanted by the Chase Building Group, a specialist in commercial and high density residential projects in the ACT region.

“It proves if the combination is right: one that offers a quality building, good tenants and a long lease – investors will come,” Randell says.

“That mix will sell in any market.”

Randell has been behind many of the foreshore commercial sales and leases and is buoyant on its future.

“It’s a destination location that’s going to stand the test of time,” he says.

“The mix of a waterfront position, restaurants and bars and residents who love its community feel means the Kingston Foreshore will become increasingly difficult to buy into.”

The Burgess Rawson head is looking forward to the development of the forthcoming arts precinct.

“That’s really the last piece of the puzzle,” he says.

The arts precinct will blend a number of heritage buildings with new spaces to deliver the creative heart of Kingston Foreshore.

What this means for you: Kingston Foreshore is tightly held, but the new arts precinct will offer further opportunities in this sought-after location.