Newcastle office market remains subdued: HTW Commercial

Newcastle office market remains subdued: HTW Commercial
Newcastle office market remains subdued: HTW Commercial

Office investment activity in Newcastle has been fairly subdued over the past 12 months, according to the latest report from valuation firm Herron Todd White.

The property valuation firm said the outlier was the headline grabbing sale of 18 Honeysuckle Drive, Newcastle (pictured) to IOOF Investment Management Ltd for a reported sum of $52.2 million of course, A record for office property in the city.

Colliers International describes the property as, “an A Grade, seven-level commercial building completed in 2017 that provides investors with a top tier asset featuring outstanding investment credentials."

"The 6,524 square metre building is 100% leased to a diverse list of corporate and Government tenants. Plus it is well-positioned in the prominent Honeysuckle harbour front precinct of the Newcastle CBD."

The property was designed to meet a 4.5-star NABERS energy rating and was awarded a 5-Star Green Star rating.

The sale reflects an approximate yield of 6.2% and reflects the continuance of low yields for well positioned and occupied investment stock in the current market.

A-grade vacancy remains at historic lows and with major office developments around the Wickham transport interchange being built fully or majority pre-committed, this vacancy rate will remain low for some time, the report concluded.

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Newcastle Office Market

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