The properties at 135 and 143 Timor Street, opposite the Archie Graham Community Centre, sold to local investors.

Harris & Wood Real Estate commercial property specialist Danny Harris said the two existing tenants, Hearing Australia and 360 Southwest, would see out the remaining two years of their leases.

The office spaces at 135 Timor Street sold for $1 million and 143 Timor Street sold for $1.02 million.

Mr Harris said interest in the two properties showed the demand for office space and highlighted a lack of suitable available sites to lease in Warrnambool.

Mr Harris said the price guide for 143 Timor Street, which is occupied by NDIS support co-ordination service 360 Southwest, was $950,000 to $1.05 million.

It was sold via a boardroom auction which attracted three interested bidders - two from the south-west and an interstate bidder via Zoom.

Bidding opened at $950,000 and it sold for $1.02 million.

Mr Harris said the building was 374 square-metres and it was leased for about $68,400 per year which represented a yield of 6.8 per cent.

He said the boardroom auction, which was held on Friday, didn't often occur in the region.

"They're typically invite-only and not held on site but a boardroom," Mr Harris said.

"They allow all the interested parties to compete in the property in a transparent manner but also a private environment."

He said the boardroom auction format worked well for the sale of the property.

The neighbouring office space at 135 Timor Street, where Hearing Australia is based, is 280 square-metres, and sold via an expression of interest campaign.

He said there were three interested parties and the property sold for $1 million.

It has a rent of $69,400 per year representing a yield of 6.9 per cent.

Each property had at least five parking spaces allocated to it in the body corporate-managed car park at the rear of the building, he said.

Mr Harris said the sales highlighted the momentum in the commercial market.

"People are still seeking returns on their money and there's not a lot of options to place it," he said.

The two sales also reflected the demand for office spaces and shortage of available premises in the city.

"There's not one vacant office complex for lease being marketed on the Real Commercial website at the moment," he said.

Mr Harris said out-of-town buyers were looking at the south-west as a sound investment.

"They're still able to get better yields than they can in metro areas," he said.

Mr Harris said the vendor, who owned both properties for more than a decade, was very happy with the result.

IN OTHER NEWS

Our journalists work hard to provide local, up-to-date news to the community. This is how you can access our trusted content:

Now just one tap with our new app: Digital subscribers now have the convenience of faster news, right at your fingertips with The Standard:

Have you signed up to The Standard's daily newsletter and breaking news emails? You can register below and make sure you are up to date with everything that's happening in the south-west.