Leased by McNamara's AGnVET Services on Gooramadda Road, the premises attracted seven registered bidders and went for $1,000,070 - more than $500,000 above reserve.

The rural supply freehold fetched an opening bid of $900,000 and was on the market after it surpassed $950,000 as all seven parties placed offers.

It didn't take long for the $1 million mark to be reached as two bidders continued to vie for the property until the hammer eventually fell.

The prominent 1.2-hectare corner site has frontage to the Murray Valley Highway and an estimated net income of more than $57,000.

AGnVET has a tenancy agreement in place until 2025, with the offer to extend for another 10 years.

Selling agent Kristian Hopwood, the commercial property manager at Stean Nicholls Real Estate, was delighted with the result.

"There was great interest and it was a great property to sell with a fantastic tenant as well. Everyone was happy," he said.

"It was sold to a local buyer which shows strength in the area. Not only do we have great buyers in the area, but they back great property around here."

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Mr Hopwood said buyers had been able to identify opportunities in the commercial market and to start up an equivalent business on that amount of land would cost around $1.5 million.

"I'm finding that the astute buyers are working out some great upside in all their purchases," he said.

"What we're focusing on is how can you make the asset more appealing.

"With this property, you've got a great tenant in AGnVET being a national company and they've been there a long time.

"We're all aware of how strong the farming industry is and the community of Rutherglen has great farming areas around it that support the business.

"It creates strength in the commitment from the tenant and you're not having to be too concerned about them up and leaving at the end of their lease period because it can be a costly option to build at the moment."

It was the second commercial auction sale for Stean Nicholls in seven days after an East Albury property with two shopfronts and attached residence went under the hammer for $890,000 last Friday.

Meanwhile, Wodonga Real Estate has a major land auction at Baranduda on Saturday with nine lots between two and 25 hectares up for grabs.

All but one of the nine parcels of land on Chapples Road are vacant.

The auction will start at 10.30am.

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