Sydney, 25 November 2013 -South Sydney continues to establish itself as a premier commercial hub, with tenant demand surging to unprecedented levels in the area.
CBRE’s Olivia Skinner said increased levels of interest from tenants and owner-occupiers to secure space in South Sydney - particularly within A-Grade assets - was helping to achieve record sales and leasing rates.
“In 2011/12, we saw high demand for B-Grade space, with deals being done at rates circa $300 per square metre gross as businesses tried to cost save, and now we are seeing deals at around $400 per square metre,” Ms Skinner said.
Highlighting the growing profile of South Sydney’s commercial market is contemporary Collins on Bourke, one of Alexandria’s largest mixed-use commercial developments.
Located at 90-96 Bourke Road, Collins on Bourke - which opened in May 2012 - offers high-tech creative office space, with suites ranging in size from 70sqm.
Ms Skinner, who recently completed three deals in the complex, said it offered tenants a modern business space with a good work-life balance.
“Collins on Bourke offers high-tech creative offices in a great location close to popular eateries such as The Grounds, Vicinity Dining and Fratelli Fresh,” Ms Skinner said.
“Heading over to award-winning The Grounds for lunch is an easy way to impress clients.”
Eaton Management recently purchased a 110sqm suite within the complex for $682,000 and Holding Pen acquired a 105sqm office for $630,000. Pacific Brands’ work wear division has also recently signed a five-year lease with a five-year option on 1,390sqm of space on the top floors. The annual rental was $385 per square metre net.
“With no other new strata commercial developments in the area being offered for sale, Collins on Bourke has been able to take advantage of small owner occupiers and investors looking to acquire in the evolving South Sydney market,” Ms Skinner said.
“Pacific Brands decision to move to South Sydney cements the location as Australia’s rag trade capital, with other well-known fashion retailers, such as Bendon, Oroton, The Apparel Group, Zimmerman and Sass and Bide, all located close by,” she added.
Further demonstrating the strength of South Sydney’s commercial market is fashion retailer My Net Sales’ recent leasing of 722sqm of A-Grade creative space in Rosebery.
Located at 2D Hayes Road, next to The Cannery development where popular café Kitchen by Mike is located, the property is being leased at an annual rental of $400 per square metre net.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2012 revenue). The Company has approximately 37,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website atwww.cbre.com.au.