South Sydney in demand

The South Sydney market remains in high demand from a range of tenants from fashion to food. Agents say the conversion of older assets into residential, has seen rents rise for the scarce commercial properties.

The South Sydney market remains in high demand from a range of tenants from fashion to food. Agents say the conversion of older assets into residential, has seen rents rise for the scarce commercial properties.

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.

InvestSMART FORUM: Come and meet the team

We're loading up the van and going on tour from April to June, with events on the NSW central & north coast, the QLD mid-north coast and in Perth, Adelaide, Melbourne, Sydney and Canberra. Come and meet the team and take home simple strategies that you can use to build an investment portfolio to weather any storm. Book your spot here.

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free

Related Articles