The Melbourne market for medical assets has remained resilient, with demand from both owner-occupiers and investors.
RWC Glen Waverley director Ryan Trickey and sales and leasing agent Will Jonas have two medical centres currently up for grabs.
The first property is located at 1078 Main Road, Eltham, Victoria. The 1900sqm site comprises a net lettable area of 500sqm and is currently tenanted by Nillumbik Medical Centre.
“This is a significant medical precinct which has spent more than 30 years as the community's biggest and most visited medical centre,” Mr Trickey said.
“The established tenant operates from a high quality, modern facility which underwent a detailed renovation in 2013.
“The property is well-positioned for continued growth and success as a local healthcare market leader.
“Astute investors can capitalise on a rare opportunity to acquire this prime corner Medical Centre investment property in the heart of Eltham.”
The second property is located at 32-34 Riddell Road, Wantirna South, with a site area of 2.090sqm and a building area of 370sqm.
“This property has been successfully running as a medical centre for over 30 years, allowing the new owner to easily continue operating in the same field,” Mr Trickey said.
“Yet, its versatile nature provides numerous exit strategies, giving buyers the flexibility to pivot their business direction if they choose.
“It’s very hard to find an investment and development opportunity like this amongst a thriving residential community.”
Mr Trickey said medical assets had continued to perform well in the post-covid environment.
“Medical is proving to be one of, if not the most, resilient asset class given the type of buyer and tenant that these opportunities attract,” he said.
“We are seeing some external pressure on secondary and tertiary retail spaces with short leases being secured, which is negatively impacting cap rates/ asset value.
“Medical is bucking this trend, and we are seeing longer leases and greater levels of commitment from occupiers. As a result, they are fairly stable opportunities.”
He said medical assets were in demand for a number of reasons.
“These sites often have well-positioned land and profiles. Corner sites or large street frontages means the underpinning land is some of the best in its precinct,” Mr Trickey said.
“The cost to build medical facilities is becoming larger. With the compliance and build cost that's specific to medical, existing centres are good value by comparison.
“Medical assets often attract longer leases, and tenants don't really want to move once they are established, which is good for all stakeholders.”
