The medical sector is becoming a growing pillar of Geelong’s Central Business District (CBD), while other industries are shifting to the suburbs.
The latest market developments indicate that two freehold medical buildings located north of St. John’s Hospital are now listed for sale.
One of the buildings has been fully renovated and is leased long-term to global healthcare giant Bupa, serving as its first dental clinic in Geelong’s inner city. The other two-story building has also been renovated and features a new elevator, allowing for flexible future use for a variety of medical-related functions.
The sale is being handled by Tim Darcy and Andrew Prowse of Darcy Jarman Geelong, along with Lewis Waddell and Chris Kombi of Fitzroys, and is expected to be completed by auction on September 12.
Darcy said the assets represent some of the highest value medical properties to hit the Geelong market in recent years. The properties have a six-year lease with Bupa, extending to 2041, and command an annual rent of $175,000, with fixed annual rent increases of 4%.
He added, “This building, long a dental clinic, has become a new benchmark in the city’s healthcare ecosystem with the arrival of Bupa and its renovation.”
Ryrie St in Geelong’s CBD is rapidly attracting medical and health businesses. From the Geelong Health Hub to Pilates and yoga centres, this once retail-focused street is quietly undergoing a transformation.
The property’s prime location and convenient transport links further enhance its appeal. “Patients have direct street access to public parking at the rear, which is a crucial convenience in the city centre,” Darcy said.
The property is expected to fetch over $2 million, in line with recent transaction prices for medical properties in the area.
Concurrently, another two-storey, freehold building at 44-46 Little Ryrie St is also on the market. This corner building offers a flexible layout and on-site parking, making it suitable for a variety of healthcare-related businesses. Expressions of interest for this property close on September 10.
Darcy emphasized that the healthcare sector has become one of the most active sectors in Geelong’s CBD for leasing. “While some commercial tenants have moved to the suburbs, there has been a significant trend towards consolidation of medical facilities in the city centre, driven by Barwon Medical Centre’s position as the city’s largest hospital and largest employer.”