Sales end South Sydney's strata office drought
A run of sales in South Sydney’s first new strata office project in a decade has brought forward the next stage in the $230 million
LJ Hooker Commercial South Sydney notched sales for 16 suites over the past 10 weeks, securing square metre rates of $9,000-$10,000 in the Andary Group’s King Street development, which also incorporates a Travelodge Hotel, Wilson Parking, restaurant, bar and café.
Andary Group Managing Director Richard Andary had initially intended to lease all six floors of office suites in the 12-storey building. However, LJ Hooker Commercial South Sydney’s Managing Director Daniel O’Brien and Director William Tong advised Mr Andary that there was a significant shortage of owner-occupant and investor stock in the CBD-airport corridor.
“We spent considerable time convincing the client of the buyers’ appetite for stock,” said Mr O’Brien. “We fielded countless enquiries for this type of stock in the low-interest rate marketplace, but there just hasn’t been a new premium A-grade commercial development for about 10 years.
“The client eventually agreed to offer one-floor of strata-suites and the response was so overwhelming, that we were able to sell out a second floor for prices we haven’t seen before in South Sydney.
“We’re now moving forward with the release of the third and final floor (level nine) ahead of schedule.”
The final office suites being offered to market range in size from 69 sqm to 700 sqm.
The tower development offers end-of trip facilities; on-site six-level Wilson Parking facility offers 840 bays; 4.5 NABERS energy rating; rare balcony and terrace facilities; and is within walking distance of the Mascot Train Station and proximity to retail.
With its proximity to Sydney Airport, the suites have attracted a healthy contingent of professional services operators in a variety of industry sector. The bulk of enquiries have come from businesses seeking alternatives to the CBD and Surry Hills office precincts, with plentiful parking opportunities on the site.
Mr Tong said: “Interest rates have provided a perfect storm for both owners and buyers. Smaller companies now have the chance to acquire Premium A-Grade office and that has spurred enormous intertest in the commercial suites.
“Smaller professional services businesses who have been restricted to subletting space in the CBD or city fringe are recognising this unique South Sydney opportunity.”
To enquire about the soon to be released final stage of office suites, contact Mr O’Brien on 0404 860 747 or Mr Tong on 0411 115 522.
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