SMSF demand for high-yielding Bankstown strata offices rising

Small investor interest in Bankstown strata offices in Sydney's outer west growth corrider is rising according to Jared Harris, sales and leasing executive at Commercial Property Group.

"We have seen in the last quarter a lot more inquiry for investments in the sub $1 million dollar mark," he tells Property Observer.

"The majority of the inquiry is coming from mum and dad investors looking for opportunities for their self-managed super funds.

Last month the Bankstown-based commercial agency negotiated the sale of a 296 square metre office in the NAB building occupied by the Department of Housing at above 8.4% net return.

The sale price was $818,000 with the office currently rented for $69,535 per annum net plus GST.

A smaller 173 square metre office sold for $645,000, renting at $51,000 and returning around 7.9% net.

"We have another 334 square metres occupied by the same tenant that is due to settle at the end of the month at around the same rate of $3,500 per square metre.

"The building has a history of having little or no vacancy.

The success of these sales is sparking further listings in the building with three adjoining lots totalling 284 square metres also now up for sale asking $994,000.

Harris says he has also received a spike in inquiry for an office in the NAB building that is offered with vacant possession.