North Sydney Commercial wins on the back of rebounding market

Raine & Horne Commercial North Sydney received several awards at the 2009 Raine & Horne NSW/ACT Chairman’s Awards, held recently at Sydney's Four Seasons Hotel.

Achievements included awards for third place in Top Commercial Salesperson (number of sales) category, first in the hotly contested Top Office Business Growth category, and an improved ranking in the Top Commercial Office (dollar value) category from fifth to third.

Proprietor and office leasing department leader Jay Sheffield credited the result to teamwork, initiative and an improving commercial market on the Lower North Shore.

“The first six months of 2009 were tough. Whenever a financial crisis hits, the North Sydney commercial precinct is usually one of the first to feel the brunt but it's also generally one of the first to rebound," Mr Sheffield said.

"The number of sales did increase in the latter part of 2009 due to business confidence returning, commercial finance becoming more readily available, and an increase in businesses looking to purchase premises rather than lease.

“Last year North Sydney vacancy rates rose from a low of 8.2% in January 2009 to 11.7% a year later. The current vacancy rate together with strong incentives and quality space has attracted interest from tenants outside North Sydney”.

Mr Sheffield said the outlook for 2010 was particularly bright for the North Sydney commercial market, with a solid number of sale and lease transactions already done.

Some notable sales negotiated by Raine & Horne Commercial North Sydney’s sales manager Corey Beauchamp, in 2009 included:

• 144 Blues Point Road, McMahons Point, a freehold mixed use building with ground floor retail, professional rooms and first floor yoga business - $1.71M, sold to investor showing a 4.9% net return
• 163 Blues Point Road, McMahons Point, a freehold heritage listed building with harbour views - $2.68M, sold to owner occupier to convert back to residential
• 265 Miller Street - $1.55M – sold to local educational facility to convert usage and occupy

Mr Sheffield said investors were looking for at least an 8% net return for commercial office space and long term leases. Investors were seeking properties with tenants secured on three year leases or longer.

“With retail, investors are showing interest at a return of between 5% - 6% net for freehold retail in McMahons Point, Crows Nest, Neutral Bay and Cammeray. If it’s strata retail, it’s 6.5% to 7.5%, depending on the location, lease term and quality of tenant."

Raine & Horne CEO Angus Raine commended Raine & Horne Commercial North Sydney for its contribution and dedication to the North Shore property sector.

"Winning these awards underlines Raine & Horne Commercial North Sydney’s consistent ability to remain true to its core business, which is achieving property sales and providing the best property services to vendors and buyers," Mr Raine said.

Raine & Horne is an iconic Australian property firm, with more than 370 offices worldwide. It is a recognised, official Superbrand along with the likes of Qantas, Vegemite, Woolworths and Myer. The company has four distinct property service brands including Raine & Horne Residential, Raine & Horne Commercial, Raine & Horne Financial Services and Raine & Horne Rural.

Tuesday 9 March 2010