As the Sydney CBD continues to re-populate post-2020, the overall demand for buying commercial strata properties has remained strong. With many businesses requiring a re-evaluation of their business accommodations to better suit changes within their individual markets, the market has experienced a new flow of eager buyers. However only some have been fortunate to secure such tightly held commercial strata stock in 2021 so far.
Corelogic Australia’s quarterly sales statistics report a total of 95 commercial office sales in the Sydney CBD over the past 12 months with a combined market value of $266,700,000. The average rate per sqm was $15,956, an 11% increase year-on-year.
Prestige properties and whole floor offices have been a hot ticket item with buyer activity remaining strong, resulting in premium prices. A great example was Level 2, 13 Hickson Road, Walsh Bay. The commercial strata waterfront office attracted strong buyer enquiry, a competitive EOI process and a record-breaking sale of $14,600,000.
Many business owners are preferring to buy rather than lease their new office spaces. Although current leasing incentives to secure tenants may represent value and relief for many businesses, the switch from lease to mortgage enables them capitalise on interest rates which remain at record low levels, in order to secure property within a growing Sydney CBD.
We have seen the resurgence of auction campaign sales with the Noonan Property team recording a 100% clearance rate within the first half of the year. With strategic, well-managed and high-performing marketing campaigns, each property has undergone competitive bidding by multiple buyers, resulting in record breaking sales results up to $250,000 on top of reserve prices.
The recent withdrawal of over 180 strata suites from the NSW Government’s acquisition for the new Metro West station shocked the strata market. The acquired buildings at 37 Bligh Street, 300 George Street and 5 Hunter Street represent 15,400sqm of commercial strata space with an approximate market value of $300,000,000. The silver lining for existing property owners is that they now own an even rarer Sydney property asset and we can expect the move from the NSW Government to play a significant role in further price increases in the future.
LATEST CBD SALES BY NOONAN PROPERTY
LEVEL 2, SHORE STUDIOS, 13 HICKSON ROAD, WALSH BAY
Sale Price: $14,600,000
Total Size: 887sqm + 10 car spaces
Rate per sqm: $16,460
LEVEL 12, 49-51 YORK STREET, SYDNEY
Sale Price: $2,900,000
Total Size: 229SQM
Rate per sqm: $12,663
SHOP 2, 82 ELIZABETH STREET, SYDNEY
Sale Price: $3,250,000
Total Size: 88sqm
Rate per sqm: $36,931
SUITE 601, 50 YORK STREET, SYDNEY
Sale Price: $2,710,000
Total Size: 233sqm
Rate per sqm: $11,631
SUITES 8-11, 154 ELIZABETH STREET, SYDNEY
Sale Price: $2,150,000
Total Size: 224sqm
Rate per sqm: $9,375
SUITE 707, 37 BLIGH STREET, SYDNEY
Sale Price: $1,300,000
Total Size: 61sqm
Rate per sqm: $21,311
SUITE 601, 37 BLIGH STREET, SYDNEY
Sale Price: $1,900,000
Total Size: 96sqm
Rate per sqm: $19,792
LEVEL 9, 49-51 YORK STREET, SYDNEY
Sale Price: $2,450,000
Total Size: 229sqm
Rate per sqm: $10,700
SUITE 10, 301 CASTLEREAGH STREET, SYDNEY
Sale Price: $625,000
Total Size: 85sqm
Rate per sqm: $7,352
SUITE 201, 111 HARRINGTON STREET, SYDNEY
Sale Price: $587,500
Total Size: 52sqm
Rate per sqm: $11,298
If you’re thinking of selling or are wanting to know the value of your commercial strata office in today’s market, please feel free to Contact Us.