Investment sales: Shining a light on the suburbs

Wednesday 30 September 2020
Capital values for sub-$10 million commercial property assets located in Sydney’s northern suburbs have held steady in the six months to July 2020, as investors continue to seek diverse income streams.

While buyer interest for such properties across the commercial, retail and mixed-use asset classes has performed well in recent years, the fallout from the COVID-19 pandemic has buoyed demand particularly for assets ranging between the $2 million and $10 million mark, according to CI’s Associate Director of Capital Transactions for the North Shore, Nick Lowry.

“Owner-occupiers are looking for additional liquidity in the form of sale-and-leaseback agreements, local builders and developers are seeking to increase their workflow and construction pipelines, and private investors are looking for alternative investment ventures. The low interest rates, bank saving rates and bond yields are also stimulating demand for this sector which has been highlighted in the North Shore market,” he said.

Recent sales evidence demonstrating this demand and the exceptional results for clients achieved by CI include:
• 539 – 541 Pacific Highway, Artarmon - $2,920,000.00 – 740sqm of land. 15 offers received.
• 129 Willoughby Road, Crows Nest - $3,750,000.00 – 392sqm of land. 25 offers received.
• 969 – 973 Pacific Highway, Pymble - $1,925,000.00 – Two level retail/office building with 5 tenants returning $100,000 + GST Net. This represents a net passing yield of 5.2%.

Learn more about the North Shore office market in CI's latest research report here.
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