Mirvac moves to sell off-the-plan strata office space at St Leonards Square
Mirvac is set to sell more than 4000 square metres of off-the-plan strata office space at its St Leonards Square development on Sydney’s north shore, as the market continues to suffer from a lack of strata office stock in the area.
Thirty-two suites between 60 and 200 square metres at the mixed-use development will hit the market on August 18, priced from $8500 a square metre.
Retail and commercial space at St Leonards Square will comprise about 7500 square metres, with offices accounting for 4300 square metres of that.
Some of the buyers are expected to be people who have bought one of the off-the-plan apartments in the project. Image: Supplied
Health club Virgin Active has already secured 1150 square metres of commercial space, including all of level one in one of the two towers, as well as a ground floor space to serve as a concierge and entry directly off the Pacific Highway to combine commercial and retail uses.
Tower one includes three levels of commercial space, while tower two has one floor of commercial space on level one, with the ground floor dedicated to retail, where a leasing campaign is being targeted at food and beverage retailers.
Mirvac NSW residential development general manager Toby Long said St Leonards was one of Sydney’s most important employment centres. He predicted its transition to a mixed-use precinct would see it continuing to play a vital role, while developing a character distinct from North Sydney and Macquarie Park.
“In St Leonards, there is already a prevalence of knowledge-based and creative industries, businesses and start-ups and St Leonards Square will satisfy an existing and growing demand for strata office space that offers the same level of amenity and attention to quality and care in every little detail that Mirvac offers in all its projects,” he said.
Mr Long said St Leonards had a level of diversity, which was absent from both North Sydney and Macquarie Park.
“It gains a lot of its character from its proximity to Royal North Shore Hospital which leads to an obvious concentration of health and medical professionals and knowledge-based workers,” he said.
The strata office spaces are priced from $8500 a square metre. Image: Supplied
“The nearby retail strip along Willoughby Road is another influencing factor giving it a more boutique village character that aligns with Lane Cove Council’s vision for an exciting mixed-use destination with a thriving day and night economy.”
According to Knight Frank’s North Sydney Market Overview, availability of office stock in the north shore market has decreased by 16.5 per cent since 2013.
Furthermore, the area is set to experience a withdrawal of 128,000 square metres of commercial space from 2016 through to 2019, the report showed.
“There’s been no new strata office stock offered in St Leonards for up to a decade and what is available is ageing C and D-grade that does not meet the requirements of many professional businesses,” according to selling agent Arland Domingo, director of Knight Frank North Sydney.
“The withdrawal of office stock is expected to continue at least until 2019 due to the time lag in gaining development approval and beginning construction.”
St Leonards’ excellent public transport offerings meant connectivity to the CBD was without the hustle and price tag, Mr Long said.
“St Leonards is already well-connected by train and bus, and when the new proposed Crows Nest metro station opens in 2024 it will be one stop to North Sydney’s Victoria Cross Station, two stops to Barangaroo and three to Martin Place,” he said.
Office stock on the north shore will continue to face withdrawal until 2019. Image: Supplied
“That is a huge advantage for any business wanting to attract talent and be easily accessible to customers and clients. Add to that a diverse and vibrant retail and dining precinct and it becomes an extremely attractive proposition for both investors and owner-occupiers.”
Another key attraction was St Leonards’ proximity to Royal North Shore Hospital and North Shore Private Hospital.
“For a medical or wellness professional, St Leonards Square offers the best of all worlds, being around five minutes’ walk from the hospital precinct and diagonally opposite the future proposed Crows Nest Metro stop, providing convenience for patients, customers, clients and workers,” he said.
Investors and owner-occupiers, especially those who have been displaced from the office stock withdrawal and redevelopment in North Sydney, Artarmon and St Leonards.
It was also expected the sale of some strata office suites would be taken up by some of the buyers of the 527 off-the-plan apartments at St Leonards Square.
The August launch of the strata suite sales follows news last month of Perth-based investors Property Bank Australia and Security Capital Australia, selling 154 Pacific Highway, St Leonards, for $60 million – more than doubling their money from 2012.
The 10-storey tower, which sold on a 5.86-per-cent yield, has the potential to be redeveloped into a taller mixed-use tower if the state government’s proposed rezoning of that corridor goes ahead.
