Blog - Commercial
SEVEN SYDNEY CBD AND ALEXANDRIA STRATA OFFICE SUITES FOR SALE BY AUCTION
Seven strata office suites across the Sydney CBD and Alexandria have been announced to the market through TGC’s Hamish Mackay and Hamish Henderson in conjunction with Knight Frank’s Edwards Jennings, on behalf of the Coates Deceased Estate Portfolio.
Collectively, the seven properties are valued at between $10 and $12 million and will be auctioned in March. They’re available to be bought either as an entire portfolio or as individual lots and provide a rare opportunity for owner-occupiers or investors to secure highly sought-after office space in the lucrative Sydney market.
66 Hunter Street | Coates Deceased Estate Portfolio
Four of the suites are located in the heart of the Sydney CBD in the City Mutual Building at 66 Hunter Street. They range in size from 92 to 119 square metres.
The Hunter Street premises are close to some of the CBD’s best bars, cafes and restaurants. In addition, owners/tenants will benefit from infrastructure developments in the area, such as the upgrades to Martin Place and Wynyard train stations that are being done as part of the Sydney Metro project, as well as the availability of the Sydney Light Rail network (scheduled for completion in 2024).
“We expect that the Coates Deceased Estate Portfolio will appeal to a range of buyers as we are currently seeing significant demand for commercial property space across Sydney, in both the CBD and fringe markets,” said TGC’s Hamish Mackay.
“The rise in rents over recent years and a lack of stock has meant commercial strata units have become increasingly attractive to owner-occupiers as they are now a financially viable option when compared to renting. Investors also remain interested in this type of office space as it offers the opportunity to acquire stock in an exceptionally tight market.”
Collins on Bourke | Coates Deceased Estate Portfolio
The remaining suites are located at ‘Collins on Bourke’ on the corner of Bourke Road and Collins Street in Alexandria, about five kilometres from the CBD. They range in size from approximately 168 to 558 square metres.
The ‘Collins on Bourke’ office suites will allow owner-occupiers or tenants to capitalise on the predicted 50% growth in population in the area over the next twenty years. Alexandria is one of the core suburbs in the Central to Eveleigh Urban Transformation Strategy and there are a number of Infrastructure projects currently under to cater for this growth, including the Waterloo Metro Station (due to open in 2024) and the development of Green Square.
The current state of the Sydney office market
The Sydney office market has been a stand-out performer in Australia over the long-term, especially in the CBD and on the city fringe where these properties are located. Average property values and rental rates in these areas are easily the highest in Australia.
Average rental yields are also healthy in these Sydney markets (currently running at just under 5%) and Sydney CBD office vacancy rates are currently at their lowest level since 2000 (sitting at about 4%).
The positive outlook for owning office space in Sydney is unlikely to change in the foreseeable future. Strong employment growth should continue to drive demand for A-Grade office space by owner-occupiers, investors and tenants.