The Liverpool office market is tightly held with limited transactions occurring over the past few years, according to Ray White’s latest Between the Lines* commercial research.
“This is driven by a strong local investor and developer market, however, there have been limited prime assets traded in recent times,” said Ray White Commercial NSW – Western Sydney Managing Director Peter Vines.
“The robust growth seen in the Liverpool CBD has not gone unnoticed by a broader pool of buyers, and this has been instrumental in tightening the yield range from six per cent to seven per cent for prime assets, depending on the quality of the lease covenant.
“The region is home to a variety of stock, and in the last twenty years, larger public administration movements have seen the addition of more modern accommodation options. We’re also likely to see increased demand for assets coming from both Wollongong and WSU universities.
“As occupancy costs across more traditional office markets like Sydney CBD, Parramatta and North Shore have increased due to reducing vacancies, many small to medium businesses have considered suburban options, and that’s grown demand levels.
“Liverpool CBD also offers quality retail and transport options, making it an accessible employment location to cater for the growing Western Sydney population.
“This has also had a positive effect on the rental environment, growing occupation costs, which has resulted in owners holding their assets.
“Encouragingly for the region has been the State Government’s commitment to Liverpool in its Cities Plan, identifying it as a future growth node for both work and play, highlighting the likelihood of ongoing office development which will further rejuvenate the Liverpool CBD.”
Mr Vines said the Liverpool office market consisted of more than 277,000sq m, across 120 buildings.
“Of these, 57 properties are identified as low-grade quasi office/retail premises less than 1,000sq m, those more traditional offerings over 1,000sq m represent 243,000sq m,” he said.