Investors turn to Mitcham shops over apartments
Two established Mitcham shops with a combined annual income of over $100,000 have been plated up for the market.
The cafe, which is in shop one, with annual income of $35,700, is expected to sell for $500,000, while Elate Kitchen — a Chinese restaurant at shop two with income of $75,554, is attracting offers above $1 million, according to CBRE retail investment agent Nic Hage.
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“They’re investments you can lock away in your super fund and — as the price range is attractive — people are comparing it to an investment apartment,” Hage said.
Recently renewed five-year leases at both shops had appealed to buyers that hadn’t previously considered commercial listings, Hage says.
“A lot of them are the same residential buyers. With the volatility in the market, this feels like a safer option, your lease is longer than residential,” he says.
Colombo St is a busy thoroughfare with access between the train station’s carpark and Whitehorse Rd.
“They’re going to be attractive for investors looking for low-maintenance, set-and-forget offerings with a huge amount of convenience,” Hage says.
“There’s 700 free car parks and 3000 people walking through daily.”
Hage says the listings areboth being sold by the same vendor, who planned to retire.
This article from Leader Newspapers originally appeared as “Mitcham shops: residential buyers turn to commercial listings”.