Three-for one: $10m Surry Hills site offers significant investment opportunity
The commercial market is off and running in 2022, with one of the largest auction sales arriving in a tightly-held CBD area.
The combined addresses of 180 Commonwealth St, 2-4 Little Albion St and 1 Ann St in Surry Hills provide potential buyers with a building area of 680 sqm.
Brought to market by Colliers agents Matt Pontey and Miron Solomons, the commercial property is set to go to public auction in March 2022 for an expected price guide of $10 million.
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The commercial property has a price guide of $10m.
Located in the suburbs’ tech investment area, also known as Tech Central, the properties are surrounded by exciting infrastructure projects.
“The city fringe market has remained incredibly resilient throughout the duration of the pandemic, with many businesses recognising the importance of locating their premises in trendy and vibrant suburbs like Surry Hills,” Mr Pontey said.
“This project, set to be completed in 2026, will significantly change the city fringe as well as place Australia in a competitive position on the global stage when it comes to technology and start-ups.”
The properties are surrounded by exciting infrastructure projects.
Both the NSW Government and the private sector have committed billions of dollars into the future investment in the region, fuelled by strong interest from developers and investors in potential infrastructure.
The property has been converted from a warehouse and features garaged tandem parking onsite for up to four cars and have a combined annual gross rental income of around $314,000 per annum.
180 Commonwealth Street, 2-4 Little Albion Street
“2022 looks set to be one of the most active years in the commercial market with interest rates remaining low and capital seeking out yielding assets with good long-term prospects,” Mr Solomons said.
“There is a prevailing view in the market that this year there will be upward pressure on capital values to break over the $20,000 per sqm mark, which looks likely given the significant under supply of quality commercial accommodation in the market.”
There have been many recent deals in the Eastern Suburbs which reach the mark of $20,000 per sqm – including the sales of 54 Foveaux St at $18,977 per sqm and 1 Butt Street at $17,791 per sqm.
The commercial values of Surry Hills properties are expected to increase as future tech companies and private investors work to make the area more unique.
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