Strata Financial buys office space in North Sydney for more than $3 million

Strata Financial buys office space in North Sydney for more than $3 million
Strata Financial buys office space in North Sydney for more than $3 million

A conglomerate of partners and brokers within Shore Financial have purchased two floors at 153 Walker Street in a deal possibly exceeding $3 million, as withdrawal of stock due to residential projects and the Sydney metro increase demand for North Sydney office space.

Colliers International’s Tom Appleby, who brokered the deal, did not confirm the sale price but said it was the largest on-market commercial strata transaction in North Sydney since 2006.

The Financial Review reported the transaction to be worth $3.03 million.

“After years of price stagnation, lack of supply and pent up demand are likely to push some strata sales above $6,000 per square metre this year.”

The strata had been owned by a private company for more than 20 years.

Colliers International anticipates nearly 148,000 sqm of stock to be withdrawn by 2020. Another 27,600 sqm of stock is slated for demolition in 2017 to make way for the new “Victoria Cross” train station in North Sydney, as part of the Sydney Metro project.

“It’s no wonder vacancy rates have fallen to a four-year low in North Sydney (7.1 per cent) and to the lowest level since 2008 (9.6 per cent) in the St Leonards / Crows Nest precinct,” said Appleby.

With limited strata supply slated, and larger developments at 100 Mount Street (~40,600 sqm) and 1 Denison Street (~45,720 sqm) unlikely to be fully completed until 2019, demand for existing stock will remain fierce.

Applyby said the property drew interest from both owner-occupiers and leasing tenants hunting for office space, yield-driven investors and developers.

"We love North Sydney; it’s really starting to get its buzz back. We’re extremely excited about entering the next phase of our journey as we strive to become Australia’s largest independent mortgage broker,” said Theo Chambers, Shore Financial’s co-founder and director.

“We’re expecting strata transactional activity to be significant in 2016, especially given strong market fundamentals and the looming onset of Strata Reform," Appleby said.

Sydney Commercial Lease

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