12 | New South Wales Across Sydney’s Inner West, yields for both retail and industrial assets are currently averaging 3.5% according to Luke Smith of Commercial Inner West | South Sydney. Vacancies in the area are low – currently less than 5% for industrial properties. Luke explains the main drivers of the local market saying, “Our markets are centrally positioned, generally being between 5-20 kilometres south/south-west of the Sydney CBD. Industrial property in these locations are low in supply and high in demand. Along with traditional industrial users, we have seen a rise in small eCommerce businesses, and alternative users such as breweries, distilleries and coffee roasters, competing for space.” Luke adds that developers are still actively looking for opportunities especially those offering value given the increased costs of construction. The team at Commercial Inner West | South Sydney have racked up considerable sales success recently. 29-31 Alfreda Street, Coogee, a 2,208 square metre prominent freehold building across four levels with leases in place to two successful businesses, was sold at auction for $16.8 million. The sales campaign attracted over 256 enquiries and 43 contracts were issued. An industrial warehouse at 12-16 FavershamStreet, Marrickville sold for $5.3million after 12 contracts were issued. The property transacted at a rate of $6,910 per square metre. A 450 square metre former ambulance station requiring substantial renovation located at 158 Edinburgh Road, Marrickville sold at auction on behalf of the NSW Government. The property sold $3 million plus GST in a hotly contested battle after 20 contracts were issued. Luke Smith lsmith@rhcss.com.au Inner West | South Sydney
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