Footscray Cotton Mills space draws interest from its own creative community
A vacant commercial space in inner-west Melbourne’s Cotton Mills precinct has come to market with a price guide of $820,000 to $880,000 drawing the attention of creatives who are already familiar with the building and neighbourhood.
The property’s character reflects its long industrial past and is central to its appeal. The Cotton Mills site began as a jute factory in 1875, later housed a rubber works and became a cotton mill after Bradford Cotton Mills bought the complex in 1939.
The former factory buildings have since been divided into commercial spaces, predominantly tenanted by creatives including architecture firms, dance studios, photographers and a record company.
“Those types of businesses tend to be attracted to and thrive in this setting,” says Jas Stephens Real Estate agent Patrick Fowler.
“It’s an older, heritage-type building — a lot of character, a lot of charm. It’s also a little bit rough around the edges.”
In its wider setting, Footscray has long been a creative hub, with theatre and performance at Footscray Community Arts and the Bluestone Church Arts Space, alongside live music in its bars and pubs.
Industrial character
The listing, which is being sold with vacant possession, comprises about 247 square metres of commercial space with desks and workstations in place, plus one on-site parking space. The flexible layout allows the new tenants to make the space their own, but the original industrial details remain a design focus with exposed finishes, large windows and red brick.
“It hasn’t been covered up with plasterboard, and all of its history and character is there on show,” Fowler says. “I think that’s part of the reason why creative-type businesses are attracted to this space.”
The property has been listed for sale for only a couple of weeks, and so far, enquiries have come mainly from within the building.
“We’ve had a few inquiries, and mainly through the immediate network at the Cotton Mills,” Fowler says.
“It’s quite a unique precinct as far as commercial spaces go. It has a strong sense of community and a creative environment down there. Often, properties of that nature are sold through word of mouth and through connections of existing owners.”
A strong investment
Fowler describes turnover in the precinct as low, although sales could come in bursts. “There might be a run where a few sell, and then it might be a few years before another one sells,” he says.
The appeal of the listing to an owner-occupier lies in the chance to build an asset while running a business, leading to a smart long-term investment.
“When you look at the value of properties down here, you’re really not paying that much more to buy a property and pay off your own mortgage as opposed to renting a space,” Fowler says. “Why not actually be paying off an asset and investing in property at the same time as running the business?”
He estimates that a space like this could rent for about $40,000 a year.
“If you can pick it up in the $800,000s, you’re better off paying off your own mortgage than someone else’s,” he adds.
Expressions of interest close at 4pm on October 15.
