The Kepler Street premises were formerly occupied by Warrnambool Dental which moved to Raglan Parade about 18 months ago and the building has remained vacant since.

Warrnambool's Harris and Wood Real Estate's Danny Harris said it sold for an undisclosed price. "It's one of the more recognisable buildings in the central business district," Mr Harris said.

"It's unique architecture and could be used for a medical purposes or offices."

The new owner, who wished to remain anonymous, is a local business person with plans to restore the building.

"It needs some love but it's a beautiful sandstone building that's 100-odd-years-old. I want to return it to the fine landmark it should be. A few factors stood out," he said.

"Not only its location today but its location in 10 years' time as the Warrnambool CBD expands and the beautiful historic nature of the building. It's a great location so we're really excited."

Mr Harris said while the commercial market was not as "spectacular" as the residential market, interest was strong.

"All of a sudden there's very few good buildings available for lease and very few for sale," he said.

"It's reflective of a lot of business confidence at the moment. The majority of businesses locally are doing very very well. There's a small amount that have been affected by COVID-19 but the majority are doing well and they've got confidence to invest further in things like property."

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