A landmark retail freehold, located in the heart of Melbourne CBD’s East End at 171 Bourke Street is now for sale through Colliers. The prime two-storey property  is set to go under the hammer on Thursday 19th September at 12pm on-site. 

The 200sqm retail freehold boasts a striking 8.9metre street frontage to Bourke Street, providing incredible exposure and branding potential to the large count of daily pedestrian traffic. 

The property is currently fully leased to popular hospitality venue “Thai Tide” until 2026 with no  additional options, and generates an annual net return of $156,000. This presents a stable  investment for buyers seeking a high-profile location with a noteworthy hospitality tenant and the  potential for future owner-occupation. 

Colliers Melbourne City Sales agents Matt Stagg, Nick Garoni, Travis Keenan, and Yvonne Zhou have been appointed to run the auction campaign. Matt Stagg, Colliers Head of Investment Services, Victoria, anticipates interest will come from traditional Melbourne CBD investors, with the East End of the CBD specifically being targeted by high net worth investors and family office buyers. 

Yvonne Zhou, Assocaite Director, Asia Markets, added, “We also expect strong interest from Asian  investors and hospitality owner-occupiers given the property’s prime location being nestled within the 24/7 hospitality precinct, theatre district and China Town.”  

Colliers’ Senior Executive Nick Garoni highlighted the various value-add opportunities for future purchasers. “At the rear of the site, construction is nearing completion of Melbourne Place, an  independent 189-room luxury hotel.

"This development is exptected to stimulate the rear laneway with some noteworthy retail offerings and the potential to unlock an additional retail income  streams at the subject property through rear retail activation, or even a future rooftop expansion.” 

The East End of the CBD is solidifying itself as a choice investment destination for hospitality and  luxury fashion, explained Colliers Auctioneer Travis Keenan.

“With new hospitality projects on the  horizon, including Lucas Group’s Bartard due to open by the end of the year, and Andrew McConnell’s Trader House plans to takeover the site of laneway institute Becco, in nearby Crossley  Street.” 

“The East End hospitality precinct continues to see the lowest retail vacancy rates in the CBD and the  highest amount of buyer enquiry, due to the continued investment from hospitality operators taking  advantage of high night-time visitation into this end of the city,” Mr Keenan added. 

Recent retail investment sales in the East End underscore the value of 171 Bourke Street around the $5 million price range with 86 Bourke Street, having sold for $5,300,000 and 147-149 Bourke Street, which is predicted to have sold for $5,500,000 in July 2024.  

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