A local investor has snapped up a boutique warehouse in Port Melbourne for $2 million, highlighting strong demand for multi-functional industrial sites.

Tom Lund and Greg Jensz of Savills Industrial and Business Services negotiated the deal for Unit 3, 320 Lorimer Street at a land rate of 2,378 per square metre and said they received significant interest.

“We received more than 50 inquiries throughout the campaign, ultimately leading to the deal being secured by a private negotiation after auction,” Mr Lund said.

Mr Lund said the building maintains “exceptional” features and has the capacity to suit both owner-occupiers and investors.

The first floor offers two open plan offices with separate bathrooms and kitchenettes, whilst the second floor residence consists of two bedrooms, living area, kitchen, bathroom and balcony.

Located five kilometres south-west of the Melbourne CBD, this warehouse has direct access to the City Link and Westgate Freeway.