South Sydney in demand
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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.