Image: Supplied.
  • Acquired from AEW
  • Sits on 1,040 sq m site, and includes 9,627 sq m NLA
  • Sydney CBD office vacancy fell to 12.5%, mainly due to stock withdrawals

A 13 storey A-grade Sydney office has been acquired by Shayher Group for $199 million, from AEW.

Negotiated by CBRE, 10 Barrack Street sits on a 1,040 square metre site, includes an NLA of 9,627 square metres and 3.5 year WALE.

The building is located just opposite Wynyard Park, and neighbouring buildings on the western end of Martin Place.

10 Barrack Street now holds a 5-star NABERS Energy rating, 4.5-star NABERS Water rating and Certified Carbon Neutral by Climate Active, making the building a market leader in sustainability.

The sale comes as the office landscape for Australia appears to be improving, according to Dexus’ Australian Real Estate Quarterly Review Q1 2022.

Dexus noted an improvement in the office landscape in the latter half of 2021, with business confidence, positive in December, along with rising professional job advertisements, and white collar employment growth positive.

Sydney’s CBD was one of the few office markets to see rent growth.

Total vacancy Rent growth (% p.a.)  Increase in stock to 2024*
Sydney CBD 12.5% 0.7% 6.9%
North Sydney 17.3% -0.9% 9.7%
Sydney Fringe 10.4% 3.1% 3.1%
Macquarie Park 12.8% 0.6% 5.9%
Parramatta 12.1% -1.3% 17.8%
SOP/Rhodes 20.0% 0.0% 13.6%
Melbourne CBD 15.0% -0.7% 8.7%
Brisbane CBD 15.5% -1.8% 5.4%
Perth CBD 19.1% 0.0% 13.7%

Source: JLL Research, Dexus. * Estimate as a % of stock.

Vacancy rates fell for Sydney CBD, now sitting at 12.5%. The report noted the fall was mainly due to stock withdrawals.

The report noted that while the Sydney CBD saw some expansions which were led by the likes of Amazon and the NSW Government, “demand was driven by smaller firms, with some larger firms offering up sub-lease space.”

“Prime incentives remained stable at 34% in Q4 2021, while net face rents grew 1.2%, leading to effective growth of 0.7%,” said the report.

Direction of trend for next 12 months
Sydney CBD Vacancy

Source: Dexus.

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