Nick Moloney of Commercial North Sydney says interest rate stability in recent months has fueled interest in the North Shore commercial market among owner-occupiers and investors alike. Nick is expecting a “surge in selling sentiment” among commercial property owners, which he believes is a natural response to the prolonged period of subdued sales volumes through the COVID pandemic, when owners opted to retain assets during uncertain times. An uptick in selling sentiment is expected to boost stock levels, bringing the potential for an abundance of options in the market, which will be widely welcomed. In the leasing market, the North Sydney team has seen a healthy increase in demand, with office requirements up 32.5% in the final quarter of 2023. “For commercial property owners, reinvesting in your current asset(s) – especially if vacant – is paramount in the current climate,” says Jay Sheffield. “We recently worked with a client to reposition an office suite in Kirribilli. After cosmetic upgrades, the property attracted strong interest and was leased in only three weeks, achieving a 35%-plus increase in rent and a strong covenant.” Jay expects continuing strong lessee interest in 2024. North Sydney Office Industrial Retail Rents p/m² Vacancy Yields Rates p/m² Six-month market outlook Office Industrial Retail Rents p/m² $300-$950 $200-$550 $350-$2,000 Vacancy n/a n/a n/a Yields 5.5-6% 5.5-6.5% 5-6% Rates p/m² $5,000-$12,700 $5,000-$8,000 $8,000-$20,000 Current market conditions $3,750,000 + GST Level 6/156 Pacific Highway, St Leonards Recent Notable Transactions SOLD $620/m² Gross + GST 102/20 Chandos Street, St Leonards LEASED New South Wales | 17 For more information, contact: Jay Sheffield jay@rhcns.com.au Nick Moloney nick@rhcns.com.au
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