Street takes healthy turn
INDUSTRIAL areas are playing host to an increasingly diverse range of businesses seeking cheaper rent.
Blanck St, in Ormeau’s industrial precinct, is being transformed by a number of health and recreation firms moving into the traditional home of manufacturers and wholesalers.
They include Jump Swim Schools and Genfit Training Centre, which have taken out six-year and 2½-year leases on 250sq m and 400sq m at 1/52 Blanck St.
The two companies signed leases in March and will pay net annual rent of about $80,000 to owner Cobraglen, linked to Leo and Terri-Anne Barbera.
Cushman & Wakefield agent Luke Smith, who negotiated the deals with colleague Dave Kertesz, said leasing rates can be $150/sq m cheaper on average than retail precincts.
“This is a growing trend in industrial areas,” he said.
“The leasing rates are attractive and the advantage is industrial areas are less busy than shopping precincts making for a less stressful experience for customers,” he said.
Mr Smith and Mr Kertesz negotiated the sale of a 480sq m unit last year at 1/46 Blanck St for $671,000, which will be home to a dentist. The property was sold by Paul and Avril Harrison, who picked it up for $561,000 in 2008.
Mr Smith said in both cases traditional industry was making way for a wider range of occupiers.
“The premises at 1/52 Blanck St was home to a wholesale pet food and fertiliser company while 1/46 hosted a mechanic,” he said.
Mr Smith said businesses were finding it easier to achieve a material change of use in Blanck St, which is zoned for low impact industry.