Carlton office fetches $17.8 million amid renewed market confidence

A vacant Carlton office building has sold for $17.8 million, with strong buyer competition underscoring renewed confidence in Melbourne’s fringe office market.

Located at 33 Lincoln Square South, the strata-titled property was purchased by a local education owner-occupier following an international expressions of interest campaign managed by JLL.

The campaign generated seven offers from both local and offshore investors and owner-occupiers, highlighting the sustained demand for strategically located fringe assets.

The building, formerly the headquarters of the Save the Children Foundation, was vacated in 2024 when the charity relocated to Melbourne’s CBD. Though currently fitted with a dated office layout, the 100 per cent vacant property appealed to buyers seeking the opportunity to refurbish or reposition the asset.

JLL’s Tim Carr, Josh Rutman, and MingXuan Li handled the transaction on behalf of CareSuper, which assumed ownership following a merger with the Meat Industry Employees’ Superannuation Fund. The sale forms part of a wider portfolio divestment, with JLL also in exclusive due diligence on two additional fund assets in Abbotsford and Pooraka.

The Carlton property achieved a building rate of $6003 per square metre and a market yield of 6.05 per cent. According to JLL, the result reflects a growing trend of businesses choosing to own rather than lease their premises – a sector of the market that remains active despite broader economic headwinds.

“Owner-occupier activity remains a defining characteristic of Melbourne’s office market,” said Tim Carr, Associate Director at JLL. “This buyer segment has consistently demonstrated a willingness to pay a premium for well-located CBD and suburban assets that align with their growth aspirations.”

Mr Carr said the strength of competition for the Carlton asset demonstrated that “buyer confidence and sentiment is returning to the Melbourne office market for strategically located assets that provide the right fundamentals.”

“The quality and quantity of bids we’re receiving from numerous buyer cohorts is the strongest we’ve seen in several years,” he said. “It’s a good sign of market recovery.”