Sydney CBD Office Strata Sales Surge

Sydney CBD Office Strata Sales Surge

Record low interest rates, limited supply and strong demand from investors and owner-occupiers is driving sales in Sydney CBD strata offices with Ray White Commercial completing two sales in a York Street building for $8.35 million.

Anthony Harris of Ray White Commercial conducted the sales at the former Standard Chartered House building at 33 York Street, one of which was sold on the first day it was on the market.

Anthony Harris said the whole floor 541 sqm office space at Level 2/33 York Street was sold for $4.25 million on behalf of a private syndicate to an owner occupier who will use the floor for a medical business.

“The office comes with four car spaces and the sale price represents a rate of just over $7,100 per sqm, assuming a value of $100,000 per car space,” Mr Harris said.

He said a 545 sqm floor at Level 6/33 York Street was sold for $4.1 million to the Egyptian Consulate on behalf of Century 21 Australia Chairman Charles Tarbey.

“This office comes with three car spaces, representing a rate of around $7,000 per sqm and $100,000 per car space,” Mr Harris said.

Anthony Harris said there is now strong demand from tenants looking to buy as they are being forced to move due to the Sydney Metro Project, which will require compulsory acquisition of 19 commercial buildings.

“I think we will see some occupiers having to get out of the CBD to locate their business due to the shortage of supply,” he said. “On the leasing side we are seeing multiple tenants compete for space and in some cases tenant advocates offering to pay higher than the advertised rental in an effort to secure properties for their clients.”