This article is from the Australian Property Journal archive
A STRATA office based in the Sydney CBD has been rapidly sold and leased by real estate firm JLL for a building record before an auction was required.
The office, located on Level 5, 261 George Street, Sydney was sold by JLL’s capital markets NSW associate director, Willem Watson. It was sold prior to auction with vacant possession, achieving a rate of $20,627 per sqm, ultimately representing a benchmark for the precinct. It has since been subsequently leased for a building record too, demonstrating the demand for strata assets and high-quality fitted office spaces.
JLL’s office leasing NSW senior executive, William Conry leased the office prior to settlement where he achieved a record leasing rate for the building of $1,200 per sqm.
Willem Watson outlines that the demand for these strata offices continues to drive the prices up.
“This sale comes hot on the heels of a surge in activity for Sydney strata offices following a number of record-breaking transactions taking place in the CBD,” Watson said
“This opportunity appealed to a wide range of investors and future owner occupiers, and we received 10 requests for contract of sale following 26 inspections of the asset,” he added.
The strata office is located on the fifth floor of 261 George Street which was completed in early 1962. The demand for the office comes as no surprise given its vital location at the centre of Sydney’s CBD. The building consists of nine full office floors and ground floor retail. The office caters to office users from 110sqm – 193sqm up to 339sqm.
Watson continued on to say that they expect this demand for quality office spaces to continue into the next year.
“Quality spaces have become the zeitgeist of the return to the office, as organisations seek to enhance the employee experience.”
“With $27 million of under-bidder capital for this asset, it’s clear that demand remains robust for high-quality strata suites in Sydney CBD, and we anticipate this to continue throughout 2022 and into 2023,” Watson said.
