South Sydney in demand
CBRE's Olivia Skinner said higher interest from tenants and owner-occupiers to secure space in South Sydney, particularly within A-grade assets, was helping to achieve record sales and leasing rates.
"In 2011-12, we saw high demand for B-grade space, with deals being done at rates about $300 per square metre as businesses tried to cost-save, and now we are seeing deals about $400 per square metre," Ms Skinner said.
One site is at 90-96 Bourke Road, known as Collins on Bourke, which opened in May 2012. Ms Skinner, who recently completed three deals in the complex, said it offered tenants a modern business space with a good work-life balance.
Eaton Management recently purchased a 110-square metre suite in the complex for $682,000 and Holding Pen acquired a 105-square metre office for $630,000. Pacific Brands' work wear division has also signed a five-year lease with a five-year option on 1390 square metres on the top floors.
Frequently Asked Questions about this Article…
The South Sydney market is in high demand due to a variety of tenants from fashion to food seeking space. The conversion of older assets into residential properties has made commercial properties scarce, driving up rents and increasing interest from tenants and owner-occupiers.
Rental rates in South Sydney have increased significantly. In 2011-12, B-grade spaces were leased at about $300 per square metre as businesses aimed to save costs. Now, deals are being made at approximately $400 per square metre, reflecting the area's growing demand and value.
Collins on Bourke, located at 90-96 Bourke Road, offers tenants a modern business space that promotes a good work-life balance. This makes it an attractive location for businesses looking for contemporary and convenient office environments.
Recent transactions at Collins on Bourke include Eaton Management purchasing a 110-square metre suite for $682,000 and Holding Pen acquiring a 105-square metre office for $630,000. Additionally, Pacific Brands' work wear division signed a five-year lease with a five-year option on 1,390 square metres on the top floors.
Olivia Skinner is a representative from CBRE who has been actively involved in the South Sydney market. She has completed several deals in the area and provides insights into the market's dynamics, including the rising demand for A-grade assets.
Tenants from a wide range of industries, including fashion and food, are interested in South Sydney properties. This diverse interest contributes to the area's high demand and competitive leasing environment.
The conversion of older assets into residential properties has reduced the availability of commercial spaces, leading to increased rents and heightened demand from tenants and owner-occupiers seeking quality business locations.
Leasing or purchasing property in South Sydney offers businesses access to a vibrant market with modern facilities and a strategic location. The area's high demand and limited supply can also lead to potential appreciation in property value over time.
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