440 Elizabeth Street hits the market amid growing demand for prime assets

MELBOURNE – The Melbourne CBD is currently experiencing a significant imbalance in the market, with a dwindling supply of prime assets. So far this year, there have been no sales in this category, with only two properties in due diligence, underscoring the rarity and high demand for such investments.

Amidst this backdrop, 440 Elizabeth Street has entered the market for sale, boasting over 13,437sqm* of net lettable area on a 2,043sqm* site and stands as one of the last retail core landholdings at the northern end of Elizabeth Street, surrounded by high-end residential towers.

The demand for prime CBD landholdings remains robust, with assets like 440 Elizabeth Street recognised as pivotal opportunities to reshape and profit from the evolving landscape of the Melbourne CBD. Land rates within the CBD continue to rise year on year, making the acquisition of such assets a strategic and timely investment.

The asset is available for sale through Daniel Wolman, Oliver Hay and Leon Ma of Cushman & Wakefield, who believe with the current land rates on an upward trajectory, purchasing 440 Elizabeth Street this year presents a cost-effective opportunity compared to the anticipated higher prices in the future.

Situated close to the Queen Victoria Market precinct, 440 Elizabeth Street is poised to benefit from Lendlease’s nearby project developments. The new State Library Metro Station, located just a block away, will further increase foot traffic and development opportunities upon its completion.

The property features an extended street frontage, being the only property within the block with over 50m of frontage. This enhances its prominence and accessibility. The pathways to vacant possession with a short-term WALE offer opportunities for immediate refurbishment, value-add, or development.

Embedded in the main retail and hospitality hub of Elizabeth Street, this asset enjoys a dynamic 24/7 precinct, the epicentre of Melbourne’s round-the-clock activities. The location is in close proximity to Melbourne Central, RMIT University, and Queen Victoria Market, recognised as one of Melbourne CBD’s most promising precincts.

Daniel Wolman, Cushman & Wakefield’s International Director & Co-Head Investment Sales, VIC, commented on the transformative landscape of the Elizabeth Street precinct. “This area is undergoing significant growth, bolstered by the new State Library Metro Station.”
“440 Elizabeth Street represents a prime investment opportunity, being one of the last retail core landholdings available in this bustling area with immense value-add and development potential.”

The substantial underlying land parcel of 440 Elizabeth Street provides a rare chance for value-add and development within one of the CBD’s most populated areas.

Mr Wolman added: “This property is a cornerstone opportunity for investors looking to capitalise on Melbourne’s high-growth CBD precinct. The potential future uses for 440 Elizabeth Street are diverse, allowing for strategic approaches such as refurbishment, repositioning, or redevelopment. Investors can also drive future rental growth or consider future owner occupation.”