The Haymarket area is directly benefiting from several market dynamics including increasing office demand from the STEM companies, massive infrastructure both planned and under construction, proposed increases to tower heights and the NSW Government’s Urban Transformation Strategy including the renewal and enhancement of Central Station.

There has been unprecedented demand from both offshore and local capital for commercial assets in the Southern CBD and it is anticipated that the precinct’s record-low vacancy, coupled with the lack of speculative office supply under construction, will see the precinct continue to enjoy strong levels of rental growth.

191 Thomas Street, Haymarket, an eight storey office building incorporating ground floor retail and basement parking for 16 cars with a net lettable area (NLA) of 4,797sq m is set to hit the market later this month for sale exclusively through Savills Australia and Colliers International.

Bennett Wulff, National Executive Director, Charter Keck Cramer is acting as transaction advisor on behalf of the vendor CPSU and commented that “the intention to diversify the organisation’s asset base coupled with the currently robust market conditions have led to the decision to divest the long-held asset.”

The building is 100% occupied, providing a current net passing income of circa $2.7m with significant additional rental upside.

191 Thomas Street has valuable 9B certification and has the benefit of the major tenant, education provider UTS Insearch, occupying approximately 75% of the property’s NLA. Providing large floor plates with a lift core positioned toward the centre/eastern side of the property, the open floor plans are practical and provide opportunity for subdivision.

With a regularly configured 823.5sq m land area, the site is positioned within the rapidly transforming Central Precinct and sits within a Future zone of high density under the draft Central Sydney Planning Strategy, with the new light rail only 150 metres (approx.) from the property and Central Station 250 metres (approx.) away.

The building is for sale exclusively through Vince Kernahan, Steam Leung, Joseph Lin and Tom O’Neill of Colliers International and Jordan Lee, Andy Hu and Tim Grosmann of Savills Australia.

According to Jordan Lee, Joint State Head, Asia Markets at Savills Australia, “Haymarket is already benefiting from the State Government’s Urban Transformation Strategy, which is set to revitalise the Central Station precinct.”

“Both Central Walk and the Sydney Metro will increase connectivity and accessibility elevating the district to a thriving commercial office destination,” he continued.

According to Vince Kernahan, National Director, Colliers International, 191 Thomas Street is strategically positioned in Sydney CBD’s southern precinct, now a recognized Innovation & Technology Precinct.

“The recent announcement by Atlassian to occupy a 50,000sq m building at Lee Street, Broadway in 2024 has shone a light on the precinct. Leasing demand for STEM businesses (Science, Technology, Engineering & Mathematics) is now greater than for Finance & Insurance, which has been the dominant office space user for decades.”

“We are seeing unprecedented demand from both offshore and local capital for commercial assets in the Southern CBD” he added.

According to Andy Hu, Joint State Head, Asia Markets at Savills Australia, Sydney’s Southern CBD precinct growth will only continue, and 191 Thomas Street, Haymarket is perfectly positioned to reap the benefits.

“Haymarket market fundamentals remain extremely strong, pointing to growth for both rents and capital values. As a consequence, we expect to see significant local, national and offshore interest looking for an opportunity to secure this high quality and rare asset,” he added.

191 Thomas Street, Haymarket is for sale through Expressions of Interest, closing on 11 March 2020 with offers of circa $75m expected.