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.
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.