Capital values for sub-$10 million commercial property assets located in Sydney’s northern suburbs have held steady in the six months to July 2020, as investors continue to seek diverse income streams.
While buyer interest for such properties across the commercial, retail and mixed-use asset classes has performed well in recent years, the fallout from the COVID-19 pandemic has buoyed demand particularly for assets ranging between the $2 million and $10 million mark, according to CI’s Associate Director of Capital Transactions for the North Shore, Nick Lowry.
“Owner-occupiers are looking for additional liquidity in the form of sale-and-leaseback agreements, local builders and developers are seeking to increase their workﬂow and construction pipelines, and private investors are looking for alternative investment ventures. The low interest rates, bank saving rates and bond yields are also stimulating demand for this sector which has been highlighted in the North Shore market,” he said.
Recent sales evidence demonstrating this demand and the exceptional results for clients achieved by CI include:
• 539 – 541 Paciﬁc Highway, Artarmon - $2,920,000.00 – 740sqm of land. 15 oﬀers received.
• 129 Willoughby Road, Crows Nest - $3,750,000.00 – 392sqm of land. 25 oﬀers received.
• 969 – 973 Paciﬁc Highway, Pymble - $1,925,000.00 – Two level retail/oﬃce building with 5 tenants returning $100,000 + GST Net. This represents a net passing yield of 5.2%.
Learn more about the North Shore office market in CI's latest research report here.