Converted Surry Hills warehouse office building listed

A converted Surry Hills warehouse has been listed.

The approximately 797 square metres property at 19 Foster Street comprises circa 3,154 square metres of NLA.

The property is 100 percent let, with a WALE of 2.4 years (as at 1 September 2018).

It has dual street frontage to Foster Street and Wentworth Avenue. 

The industrial-style space was refurbished in 2013 with high ceilings, polished concrete floors and exposed brickwork.

It has been listed for sale through Knight Frank’s Jonathan Vaughan and John Bowie Wilson, with Karbon Property’s James McCourt and Joshua Watts, on behalf of Security Capital Australia. 

Vaughan said commercial properties in the area are tightly held.

“Substantial office buildings in Surry Hills are highly sought after by investors as they don’t come to market very often and we are continuing to see an increase in interest in the city fringe, with a number of groups now undertaking active city fringe buying strategies,” Vaughan said.

“Further, the asset’s favourable lease expiry profile and low rental base will provide an incoming owner the opportunity to add significant value by leveraging one of the most sought after leasing markets in the country.

“With opportunities such as these hard to come by and the asset catering to a generational shift in the occupier market, we expect the industrial-style creative space will draw significant interest from local and offshore investors.”

McCourt said the Sydney city fringe area had the lowest vacancy rate of any commercial market in Australia.

“The vacancy rate in Surry Hills has been contracting for three consecutive years as it has become the number on destination for the growing TAMI sector.

“As a result vacancy in the city fringe area was sitting at around 3% relative to 4.6% in the Sydney CBD, as at January 2018. 

“The falling vacancy rate combined with growing demand and limited supply has led to substantial growth in prime rents in recent years.

“This provides the incoming owner with the opportunity to benefit from a substantial reversionary uplift in 19 Foster Street.”

The expression of interest campaign is set to close at 4pm on Wednesday 31 October.