_North Shore Strata Market Remains Strong in Uncertain Times
With the broader commercial property market showing early signs of cooling, the North Shore strata market continues to outperform the broader Sydney Metropolitan market.
Underpinned by strong investment fundamentals and over a decade of constrained supply as a result of the residential market having undergone a half-decade of unparalleled growth, commercial development was all but shelved much to the detriment of commercial occupiers throughout the region.
At present there are just two new commercial strata opportunities for sale on the North Shore; namely Mirvac’s St Leonards Square which offers around 7,000sqm of commercial property within a mixed use development, and Pymble Place, a comprehensively renovated 7,000sqm commercial building on Ryde Road. These two properties represent the only commercial strata opportunities of scale to be developed within the past 10 years, and present local commercial occupiers with much needed opportunities to upgrade or expand.
St Leonards Square by Mirvac provides unique strata opportunities in Sydney’s North Shore.
Knight Frank was appointed as the exclusive selling agent for the commercial component of St Leonards Square, conducting a targeted campaign towards existing occupiers within St Leonards and Crows Nest, in addition to the Sydney CBD. The response received to St Leonard’s Square was at complete odds with the broader market, with over 80% of the strata suites exchanged on the launch date; this in a time where residential developers are reporting the slowest sales rates since the GFC. Overwhelmingly, local owner occupiers within the existing surrounds were literally lining up to secure upgrades from their existing premises; most of which are 1990s built C grade buildings.
St Leonards Square offers a range of commercial suites from 81sqm to 209sqm
The bad news for commercial occupiers is that there isn’t much relief in sight. The Royal North Shore Hospital is due for completion in mid-2021; however it has been fully pre-committed by the NSW Government, and the 56,000sqm Gore Hill Technology Park has been sold to a data centre operator. These two developments represent the vast majority of the North Shore’s commercial office accommodation pipeline, and suggest that this market will remain tightly held into the foreseeable future.
For more information on St Leonards Square by Mirvac click here or contact:
Anthony Pirrottina
+61 402 666 093
Anthony.Pirrottina@au.knightfrank.com
Arland Domingo
+61 411 620 722
Arland.Domingo@au.knightfrank.com