Alexandria Industrial site listed in a tight market
Alexandria industrial site listed in a tight market
| 14 March 2018
CBRE has been appointed to sell a free-standing site in the commercial hub of Alexandria.
6-8 Huntley Street comprises four warehouses totaling 4,571sqm on a 6,168sqm site area. The site is zoned B6 Enterprise Corridor with a 2:1 floor space ratio. Located next to the Woolstores, The Mill and opposite Goodman’s proposed new headquarters in Alexandria Industrial Estate, iconic Sydney eatery, The Grounds of Alexandria, is also on the doorstep.
Mr Egan said they expect this property to be highly sought-after by purchasers in this market as supply is extremely tight.
“The property will appeal to a range of buyers, including owner occupiers who want to locate their business in a high-profile location to take advantage of the passing traffic and weekend trade; or developers/investors who will develop the site into office accommodation and capitalise on the low vacancy rates in the CBD, City Fringe and South Sydney,” Mr Egan said.
Mr Shipp said the demand for office accommodation in proximity to public transport and amenity is at an all-time high, fueling strong rental growth in these markets.
“South Sydney is no longer perceived as a secondary location providing modest accommodation and amenity at a lower price point than the CBD, but rather an extension of inner city suburbia, offering strong options and a sought-after working environment. This is witnessed through the relocation of companies who historically saw the city as their home – highlighted by Goodman’s planned move to Alexandria, Genesis Care’s relocation to The Mill and array of Government to Mascot,” Mr Shipp said.
“We are seeing a push from inner city suburbs of Darlinghurst and Surry Hills as rental levels have grown some 30% in the past 12 months, with vacancy levels falling to sub 3%. We are witnessing increased amenity and gentrification in the southern markets which is driving tenants south – fashion is a big mover; G-Star, Camilla, Seafolly and Under Armour all now call Alexandria home.”
Accessibility of this location will improve even further with the anticipated 2019 opening of the WestConnex St Peters interchange.
“Whilst Surry hills and adjoining city fringe locations are high on the agenda for tenants, the recent pricing increases and residential boom have restricted choice,” Mr Gray-Spencer said.
“Commercial precincts such as Alexandria and Mascot are now appealing to millennials due to increased infrastructure and amenity, with these locations are now housing the tenants of the future.”
After recently selling a similar asset at 23-27 Bourke Road, Alexandria Nathan Egan and Stephen Grant commented investors were excited by Alexandria’s ongoing gentrification, accessibility, and strong fundamentals underpinning future rental and capital growth.
The EOI campaign closes on 12th April 2018.
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