A boutique office suite in the Sydney CBD’s financial core has sold under the hammer for $975,000 – reflecting a tight passing yield of 3.45%.
CBRE’s Mitch Noonan, Jessen O’Sullivan and Nicholas Heaton were exclusively appointed to market Suite 404, Level 4, 234 George Street with the campaign drawing a notable 35 inspections, 27 contract requests and 11 under-bidders.
CBRE acted on behalf of private owners from Dural, with the final sale price setting a record internal rate for the Sydney CBD financial core precinct at $15,234 per sqm.
Mr Noonan said there was an overwhelming response from the investor market despite the short-term lease expiry.
“The property sold for a record price for financial core strata offices of over $15,000/sqm. Interestingly, it was sold with a lease expiring in April 2018 which would usually appeal to owner occupiers, however investors made up 68% of the enquiries and a private investor was the eventual buyer,” Mr Noonan said.
“It was clear that investors are competing for offices in prime locations as they look to take advantage of the new George Street light rail coupled with unprecedented office leasing conditions.”
The 64 sqm suite is exceptionally located on the corner of George Street and Bridge Street, and offers direct access to the future pedestrianised George Street and light rail system, which is expected to be completed in 2019.
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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 (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.