Market vacancy the lowest in 26 years.
Holdmark has snapped up a single level retail asset in the heart of Parramatta CBD for $23 million on a 3.3 per cent yield, earmarked for longer term development potential from Siblow Pty Ltd, in a move that continues to demonstrate the strength of the Parramatta market.
According to John McCann, National Director, Sydney Metro Sales, Investment Services at Colliers International who negotiated the sale, it highlights the buyer’s longer term view of the Parramatta commercial leasing market with unanticipated levels of pre-commitments to commercial office space currently being experienced in area.
“With A grade office space currently at an all-time low of zero per cent, and a total market vacancy of 4.5 per cent, the lowest in 26 years, developers are looking at commercial development sites as a result of the tight leasing market”.
Mr McCann said buyer enquiry on the 3,345sqm property at 41 George Street was not restricted to the larger private sector but also saw an increased level of interest from the REIT's and corporates.
“This is partly due to the tight leasing market and the recent success of Dexus leasing of 25,000sqm at 105 Phillip St Parramatta to the Department of Education coupled with the increased levels of leasing enquiry on Parramatta Square on the back of the 26,000sqm commitment by UWS”.
Currently a single level retail asset in the heart of Parramatta CBD, the property has a net income of circa $730,000 with leases until 2025 plus options. The major tenant is Crunch Gym who occupy 2,200sqm with five other smaller tenants. The site is Zoned B3 core Commercial under Parramatta LEP with a 10:1 FSR.