A northern Sydney office building has been sold for $11 million to a Chinese-Australian investor.

The Crows Nest commercial property is located at 2-4 Clarke Street and was marketed for sale by CBRE.

The property includes two ground-floor retail shops, two levels of office space and 16 undercover cars spaces.

CBRE’s head of NSW private clients Nick Heaton said buyers were shifting their focus to higher yielding investment opportunities.

“Private investors are displaying a noticeable shift in their acquisition strategies and are increasingly diverting their attention away from residential investments and chasing higher yielding office investments,” he said.

“The usual suspects are still chasing commercial investments but now we are also seeing a whole new group of buyers on our database that historically would only invest in apartment blocks but are now highly competitive when bidding on commercial assets.”

At a glance: 

• A property in Sydney's northern suburbs sold for $11,000,000 to a Chinese-Australian investor for an initial sale yield of 1.96 per cent.
• The Crows Nest commercial property is located at 2-4 Clarke Street and was marketed by CBRE.
• The property includes two ground-floor retail shops, two levels of office space and 16 undercover cars spaces.

The property is adjacent to the area’s future metro station development and nearby Crows Nest’s Willoughby Road retail strip.

The initial sale yield was 1.96 per cent, however, CBRE said this reflects existing vacancy in the building.

It is believed that the estimated yield on a fully-leased basis would be about 4.8 per cent.

CBRE’s Toby Silk noted that assets of this ilk were attracting increased demand from buyers chasing higher yielding properties with longer leases.

"CBRE recently sold 85-97 William Street, Darlinghurst – a 1,785sqm office building which had attracted 429 enquiries and generated 42 inspections," he said.

"The building had the same B4 Mixed Use zoning as 2-4 Clarke Street and was expected to attract similarly strong buyer interest."

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