Wellness investment anchors high-yield Potts Point opportunity
A wellness centre in the heart of Potts Point has come to market, offering investors the chance to secure strong, long-term income from an established tenant in one of Sydney’s most tightly held inner-city precincts.
Located at 16 Earl Place, the commercial property is leased to wellness brand 1Remedy, which offers saunas and ice baths, until January 2029. The space features a brand-new, high-quality fitout with polished concrete floors, exposed sandstone walls, and custom-built wellness suites.
Sauna and ice bath spaces continue to gain popularity across the country as a growing cohort chases a lifestyle that integrates their health benefits into their everyday routines.
According to listing agent James Cowan, head of NSW, investment services at Colliers, opportunities of this scale and yield are exceptionally rare in Potts Point.
“The median house price in Potts Point is $2.8 million and the median rental is $980 per week, equating to an average yield of just 1.82 per cent,” Cowan said. “The scale of this commercial asset in the mid-$1 millions makes it rare, while the 7 per cent-plus gross return is what makes it compelling.”
Buyer interest has been strong since launch, reflecting the growing demand for income-producing assets backed by resilient tenants in tightly held, high-demand locations.
“The interest has been outstanding and, if Christmas didn’t get in the way, we would have sold it by now,” Cowan said.
Potts Point continues to evolve into a blue-chip suburb of Sydney’s CBD with popular cafes, restaurants and creative businesses dominating the suburb’s make up.
Earl Place also sits within a precinct known for its colourful past, close to the former Dragonfly Nightclub, once operated by John Ibrahim, the notorious Kings Cross nightclub operator, adding a layer of cultural significance to the address.
Cowan said the combination of secure, single-tenant income, a rejuvenating precinct and a yield above the cash rate was resonating strongly with buyers seeking alternatives to lower-return residential investments.
