Out of interest is this info publicly available??
Not that I'm aware of.....Cityscope, Commercial Property's equilivent of RP Data.
Shady
Its not something I would have bought but why are you recommending this particular one and how did you come across it?
Are you into CIP's now?
cheers
Hi Bill,
I'm not recommending it but I am saying its very cheap and not a bad entry into the commercial market.
http://www.homehound.com.au/lot+18+level+5+44+miller+street+north+sydney+nsw+2060/
Looks like it was only recently tenanted and has either fallen short of the $330/sqm asking or has massive outgoings to only return 7% net return.
From memory the lease started in Aug2010 to good tenants. They actually occupy 2 other suites on the same level and another suite a few floors below (mining industry).
Leased at $325/m2...... but yeah outgoings at something around $12,500pa.
It sure has good $/sqm value, but also limited in office configurations and limited natural light.
It is underpriced, that building generally gets between $3000-$4000/m2 depending on the suite. From what I understand the price has been dropped significantly to show somewhat of a return. To an owner occupier it would be worth more but as it's leased for the next 2years it's not of much interest to that market.
Not limited to configuartion much at all but could do with more natural light.
May be hard to find quality tenants in future when at the lower quality end of the market stock.
North Sydney has suffered from quite high vacancy rates over the last 12-18months.
The current vacancy rate has tightened from around 15% to 11-12%. I dont think that this is a great indicator as it includes everything from 3 full floors at 116 miller st @ ~1500m2 per floor to the 30m2 strata titled office suite.
The majority of strata titled office suites in North Sydney are generally under 150m2 with a few up to 400-500m2.
I'd say that the vacancy rate for strata titled office suites is somewhere between 8-10% and tightening.
