Future opportunities and strong income security set to drive interest in growth corridor Sydney asset

Interest in long-leased commercial assets with future development potential is expected to underpin demand for a Telstra owned and occupied commercial building in Sydney’s CBD-Broadway corridor.

CBRE’s Harry George, Kenny Duncanson and James Parry have been appointed to steer the sale and leaseback campaign for 200 Broadway – a building currently utilised as a telecommunications centre.

The freehold Chippendale building is being offered with a triple net, five-year lease to Telstra, providing significant income security from Australia’s largest telecommunications company.

The property’s B4 Mixed Use zoning also allows for significant development, refurbishment, or conversion potential in the longer term.

“The building neighbours the $3 billion Silicon Valley-style Tech Central hub earmarked for the Central Station precinct and is situated in a major university catchment which is positioned to benefit from a resurgence in international students and migration,” Mr George said.

“This, coupled with the asset’s secure holding income, will underpin interest from value-add groups and developers, allowing an incoming owner to ride out any future market volatility.”

 The current building has an estimated gross floor area of 8,852sqm, with a basement and lower ground floor car park, ground floor and three upper levels.

It is situated on a 1,770sqm site, which also offer potential for build-to-rent, other residential uses, or office development, given the tight supply of commercial and residential space in the CBD-Broadway corridor.

Last mile logistics, education, or data centre uses are among the other possibilities subject to the relevant planning approvals.