Tiny kiosks all the rage as 12sqm property hits market

Australia’s smallest commercial properties are enjoying a moment in the sun as investors chase cheaper entry points into the commercial market.

A tiny 12sqm kiosk at Melbourne’s Northcote Plaza is the second kiosk to be listed for sale at the inner-city shopping centre in the last two months, with its owners likely buoyed by the result achieved by the first.

In March an eight square metre kiosk leased to Repair Bee sold for $401,500 – just over $50,o00 per square metre – on a yield of 5.1%.

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The latest kiosk, Kiosk 4, is slightly larger and is leased to a flower store until 2022, with an additional five-year option. It currently draws a rental income of $36,000 per annum.

Marketing agent Fergus Evans from Teska Carson says demand for smaller commercial property investments has soared over the last 18 months, with strip shops and residential property too expensive for some investors.

The kiosk measures just 12sqm in size.

“What we now know is that there is quite a lot of interest in this type of product especially from buyers who may require a lower entry point to the commercial market,” Evans says.

The Repair Bee kiosk attracted more than 50 enquiries, mostly from first-time investors or people looking to put something into their super fund, he says.

“We feel quite confident that the market will again deliver a strong result for the vendor.”

“Kiosks are not your average real estate asset. They come up very rarely, consequently we have little sales history about which to gauge relative value.”

Kiosk 4 will be auctioned on-site on Wednesday, May 24 at 1pm.