GEELONG workers’ craving for great coffee and good food is creating a niche for cafe operators in the city’s industrial estates.
Darcy Jarman, Geelong West agent Tim Darcy said the city’s transition from manufacturing to a service economy is driving the trend, as more commercial and warehouse properties open for business in areas like Breakwater and Drysdale, where two food-based investments go to auction next week.
The property at 1/6-10 Apparel Close, Breakwater, goes to auction on November 14 at noon.
Meanwhile, 1/34 Murradoc Rd, Drysdale will be auctioned on November 15 at noon.
The former is leased to Cafe Palat on a new three-plus-three year $27,012 net lease expiring in 2025, while Ground Zero at Drysdale is leased to 2023, generating $29,7378 a year.
“They present a really good opportunity for smaller investors or self-managed super funds,” Mr Darcy said.
“They’re in good locations, good quality buildings and have tenants in situ for a while”.
Both properties are priced in the $500,000 to $550,000 range, making them affordable investments with good returns.
The converted clear-span warehouses are in Industrial 1 and Commercial 2 zones.