Running a small business comes with many challenges, but imagine not having to worry about paying rent for the workspace you occupy.
This is the thought on many office owner-occupiers’ minds when considering to buy their own strata property, as they watched net face rents in the Sydney CBD shoot past an eye-watering $1000 a square metre in late 2018, while rents ballooned by 9 per cent throughout the year, according to figures from Savills.
Traditionally considered by investors to provide stronger cash flow but slower capital growth, the latest research from Ray White indicates central Sydney strata offices have been bucking the trend. Values on a per-square-metre basis surged by nearly 25 per cent to $12,144 in 2018, making it an attractive option for investors to park their money in.
It’s also a more affordable way for smaller investors with smaller budgets to dip their toes in commercial property.
Whether you’re a business owner or investor, here are some of the best strata office properties we’ve got our eyes on in Sydney.
Tenanted until October 2019, these two strata offices make up a combined 107 square metres of space and are to be sold in one line.
The two lots are on level six of the heritage-listed, seven-storey Fayworth House, which had new lifts installed and air conditioners replaced in 2018.
Drake Property selling agent Nicholas Drake expects the properties to sell for $1,123,500 to $1,230,500, or between $10,500 and $11,500 a square metre.
Built in 1913, the building was originally a two-storey structure, before five levels were added on top in 1924 following a fire.
While this suite has a month-to-month lease in place earning a net income of $62,590 a year excluding GST, the asset can be sold with vacant possession for owner-occupiers.
The strata space on level four of the art deco AWA Building has 115 square metres, which includes a reception area, board room, five office rooms and an internal wet kitchen. It also comes with a storage cage.
The property has price expectations of $1.61 million.
This office suite may be small at just 25 square metres, but with its position on the top floor, the views of Castlereagh Street is a reminder that the space is in the middle of all the action.
It has been given a fresh lick of paint as well as new carpeting, and comes with a six-square-metre basement storage on its own title.
The owner wants $465,000 for the property, which is within the heritage-listed Trust Building, originally built in 1914 for the former Daily Telegraph offices until they relocated in 1929.
The space is currently vacant and outgoings are about $6660 a year.
With a short-term lease ending in August, this could be the new home of a growing business. The 75-square-metre property has a guide of $695,000 and generates an indicative income of about $32,000 a year.
The strata space, on level two of the building, includes a reception area, two office rooms, an open-plan workspace, partitioned boardroom, dry kitchen, storage and one car space.
Occupying the top floor of a modern, seven-storey building, this strata office space has views across the CBD skyline.
The 49-square-metre space is fully furnished with a kitchenette and comes with reverse-cycle airconditioning.
The building is located next to Fish Markets light rail station and the bus stop.
It has an asking price of $550,000, excluding GST, and is to be sold with vacant possession.
Providing 131 square metres of refurbished office space, this strata suite is within a size range that would suit small to medium-sized businesses.
The space is located on level six of the Ultimo building, which is close to Central Station and Broadway Shopping Centre.
It comes with one car space and features an open-plan layout, dry kitchenette, ducted air conditioning and access to loading dock, visitors and courier parking.
The property is tenanted until January 2021 and has price expectations of $620,000 excluding GST.
For those who don’t need to be close to the CBD, this office is located in Sydney’s growing north-west region.
With the Bella Vista Sydney Metro station opening mid-2019, directly across from the building, the future owner of this property can be one of the first landlords to reap the benefits of the new infrastructure.
The 147 square metres of space includes a reception area, six partitioned offices, one meeting room, kitchen and break room, as well as a balcony. The property also comes with six car spaces.
The strata office is leased to a long-term tenant and has an asking price of $1.1 million.