Industrial values skyrocketing on Sydney's lower north shore

The sale price of $1,231,000 was $261,000 more than the reserve. The previous record for The Enterprise Centre estate was $4265 a square metre.

The property is one of 27 lots at The Enterprise Centre in Artarmon. Photo: Supplied

Listing agent Peter Mangraviti, from CBRE, said that the estate was popular with IT and medical companies, owing to Artarmon’s close proximity to the CBD and the Royal North Shore Hospital.

A lack of existing stock and no new land releases in the area was helping to drive buyer demand, he said.

“We’re just seeing a general spike in Artarmon due to a lack of supply and no development land to build, there aren’t any more strata estates, and that ever-increasing demand is driving prices,” he said.

The property, one of 27 industrial lots at The Enterprise Centre, consists of two levels with a first-floor office and a ground-floor warehouse, as well as four car spaces.

This follows the sale of 16/78 Reserve Road Artarmon prior to auction.

Mr Mangraviti said that the campaign had received a high level of inquiry from investors and owner occupiers, with the winning bidder set to lease the property, which was offered as vacant possession.

41 Kitchener Road is currently leased to the Lane Cove Veterinary Hospital. Photo: Supplied

Also in Artarmon a building currently tenanted by a veterinary clinic on a 15-year lease fetched $2.85 million at Wednesday’s auction.

Six prospective buyers were in the room, with four bidders in action.

The eventual buyers, a private-investor family who wish to remain anonymous, secured 41 Kitchener Road after upping their bid – the highest in the room – from $2.8 million, at which point the owner indicated they were willing to sell.

The clinic – tenanted by Lane Cove Veterinary Hospital – occupies 575 square metres and has three street frontages.

It is generating a net income of $147,047 a year, and sold on a 4.8 per cent net yield.

Listing agent Aaron McLean, from CBRE, said that tenanted investments on the lower north shore were in high demand, reflected by consistent sub-5 per cent yields.

“Lower north shore investments are pretty sought after, particularly in the sub-$10 million range,” he said.

The auctions were the first to be held at CBRE’s new North Sydney Offices, located at Level 29, 177 Pacific Highway, North Sydney.