South Yarra

A buyer with a sweet tooth snapped up a fully refurbished two-storey building at 647 Chapel Street for $3.2 million under the hammer, on a yield of 4.3 per cent. The shop, sold by Fitzroys' Chris Kombi and Chris James along with John Camilleri of Killen Thomas, was leased to sweet retailer Burch & Purchese on a 5x5x5-year lease for $140,400 per annum plus outgoings and GST. Mr Kombi said the surge in residential development and population boom had a beneficial impact. Another shop at 196 Warrigal Road sold before its auction for $1.05 million in a deal negotiated by James Gregson and Michael Ryan. The property was leased to day spa and therapeutic massage parlour Holiday Calm on a new 7+7+7-year lease, returning $60,000 plus GST and outgoings. Mr Ryan said the sale was believed to have set a record for the strip.

Dandenong South

Knight Frank has closed two vacant possession sales in Monterey Road to owner-occupiers. TI Automotive, which has  been in 13B Monterey Road for more than 20 years, are winding up its operations with the closure of Ford, Toyota and Holden. The building sold off market for $2.92 million. George Linn said owner-occupiers were seeing value in secondary stock provided the fundamentals were still there – height and good access. Adrian Garvey sold 11 Monterey Road after Amcor vacated the site to Korean-based pharmaceutical company Komipharm International for $6.4 million.

Dandenong South

Two sites used by Woolworths-owned Hardings Hardware have sold to private investors. One, an office/warehouse in 25-31 Ventura Place, Dandenong South, sold for $2.977 million on a yield of 7.86 per cent. The other at at 6-7 Pitt Street, Reservoir, sold for $3.95 million on a yield of 7.85 per cent. Cushman & Wakefield's Richard O'Callaghan said both properties generated more than 100  inquiries and underlined the strong demand for quality industrial investments.

Heathmont

A Crumbles Bakehouse on a thriving retail strip in Melbourne's east has sold at auction for $1.08 million. The shop at 180 Canterbury Road was snapped up by a local investor on a yield of 2.5 per cent, Ray White Commercial's Brett Diston said. In another deal, a ground-floor 110 sqm office at 7/521 Toorak Road, Toorak, has sold to a local investor for a yield of 5.6 per cent. Paul Rizzo said the property was leased to a quality tenant and returning net rental income of about $43,264 per annum. Meanwhile, a standalone office/warehouse at Clayton South in Melbourne's south-east was sold for $1.2 million to a private trust by George Kelepouris.

Clayton

German-based company Semikron has sold an office warehouse at 8/8 Garden Road for $900,000. The 474 sqm building was purchased by an owner-occupier for about $1898 per sqm, Knight Frank's Stuart Gill and Dean Kimitsis said.

LEASES

Melbourne

Gen5 Group will take 245 sqm in Fife Capital's landmark bluestone heritage building on level 3 at 520 Bourke Street. The tenancy features exposed ceilings and original hardwood floors at a $510 per sqm gross rate, JLL's Alexandra Harper said. Ms  Harper also leased 271 sqm at 18 Oliver Lane to Miller Leith for $505 per sqm net. That self-contained industrial-style office has high ceilings, polished timber floors and an open-plan working area.

Melbourne

National engineering and consulting company Lucid Consulting will move from 200 sqm at 450 St Kilda Road to 455 sqm on level 1 at 5 Queens Road in a deal negotiated by Colliers International's Vincent Tran, Ben McKendry and Matt Cosgrave in conjunction with Thorburn Property. Lucid will pay net face rent of $340 per sqm in the Charter Hall-owned building. Meanwhile, HYH Management Group will move to a larger facility that backs onto Tullamarine Freeway at 4, 71-93 Western Avenue, in Tullamarine. The lease term was struck around  $70 per sqm. Marco Sandrin and Brent Glassford said they has seen more inquiry for space in the 2000 to 10,000 sqm sector.

Burwood

Melbourne's city fringe leasing market has seen increased activity. Australian Child Care Projects will start a centre in 1000 sqm space on a rental of $260 per sqm net at 347 Burwood Highway for the area's growing workforce while Melb Eastern GP Network committed to a 500 sqm space at 5 Lakeside Drive to support its growing operations. GP Network's agreement for the modern standalone office building was negotiated on a three-year term, with an initial rental of $280 per sqm net, CBRE's Gianni MacDonald said. In another deal, Seaway Logistics has inked a 10-year lease on a 47,000 sqm site at 11-25 Toll Drive, Altona, Todd Grima and Tom Hayes said. Rent in the area range from $70 per sqm to $80 per sqm.

Kew

Kew's office market has seen numerous lease deals totalling 2000 sqm. Kelly & Kelly Property's Anthony Kelly said the bulk of leases were negotiated at 35 Cotham Road and 79-83 High Street. Rents varied from $360 per sqm to $462 per sqm annum gross. New tenants include JDR Software (382 sqm), Asian Pacific (359 sqm), Blazer Wealth (485 sqm), Axiom (400 sqm) and Nostra Data (330 sqm). "There's been a terrific take up which is now putting upward pressure on rents and a noticeable reduction in lease incentives" Mr Kelly said.

Armadale

A building formerly occupied by Ed Clark Antiques at 781 High Street has leased to a hairdresser in a deal negotiated by Gross Waddell's Tamara Gross. The single-storey building on the northern side of High Street between Kooyong Road and High Street was leased for 3+3 years at a per square metre rate of $800.

Oakleigh

All Weather Blinds has signed a lease for an 830 sqm office/warehouse at 29 Dalgety Street for $90,000 per annum net. Rodney King from Crabtrees Real Estate said the lease included a 5 x 5 with 3 per cent increases and 3 months' rent free.

MOVERS

CBRE has expanded its strip retail investments team, appointing former Toop & Toop sales agent Nic Hage. Mr Hage will work alongside Rorey James and Josh Rutman.

Submissions to sjohanson@fairfaxmedia.com.au