Investors look to the North
There was sustained demand in the North Shore market for assets of varying sizes during the first half of 2018, and it's set to continue, according to commercial real estate firm CI Australia.
The firm's Associate Director of Capital Transactions, Nick Lowry, said a number of buyers remained attracted to the North Shore market's fundamentals, where the number of commercial investment opportunities have been limited due to residential conversions and discerning vendors - a trend which is also playing out across Sydney's CBD.
Mr Lowry commented that areas of the North Shore including Pymble, which boasts a modest, tightly held cross section of commercial, light industrial, retail and Government properties were catching the eye of investors. Deal evidence includes the $14.55 million sale of 4-10 Bridge Street Pymble, a 2,400 sqm office building, which attracted strong interest from local and offshore parties following an Expressions of Interest campaign. The asset's 95% occupancy rate, strong net income and location near a major intersection strengthened interest.
Buyers have also invested in the prominent office asset located at 123 Walker Street North Sydney, which Mr Lowry sold with CI Australia colleague and Managing Director of North Sydney, Bevan Kenny. Mr Kenny also recently acted with colleague Chris Veitch and co-agent Knight Frank on the sale of 154 Pacific Highway, St Leonards which sold for $60 million. 15 bids were received for the property, with the sale price equating to a passing yield of 5.86% and a rate psm of $9,557 - a strong result for a B grade commercial asset within the precinct.
Smaller mixed use assets have also changed hands, including the retail and office building at 72 – 72a Willoughby Road, Crows Nest and two medical suites within the 15-storey apartment building at 2-4 Atchison Street, St Leonards. The proximity to Sydney’s other key precincts - CBD, Parramatta and Macquarie Park - of the North Shore, and the immediacy and variety of transport options were draw cards for investors, will remain so, as ease of access and connectivity across Sydney cements its importance for businesses.
For more details on the North Shore Market and for expert guidance on selling your commercial property, contact our North Shore team on +61 2 9925 0000 or firstname.lastname@example.org. In the meantime, keep up to date with our latest listings for sale and lease here and check out our LinkedIn, Twitter and Facebook channels for news and market trends.