Fully leased and offering a total lettable area of 6,497 square metres, the property at 19a Boundary Street, Darlinghurst, is home to notable tenants such as creative agency Collider and celebrity chef Donna Hay.

The building includes a ground floor retail showroom, secure parking for up to 51 vehicles and provides a net passing income of $4,380,311.22 annually, derived from a diverse mix of 53 tenants.

Mercer Property’s Tom Speakman and Matt Davoren in conjunction with CBRE’s Harry George will steer the Expressions of Interest campaign.

At a glance:

• Rare commercial building at 19a Boundary Street, Darlinghurst, now for sale offers investors a range of options including strata subdivision   
• Property comprises total lettable area of 6,497 square metres and includes a ground floor retail showroom and secure parking for up to 51 vehicles
• The converted warehouse provides a net passing income of $4,380,311.22 annually, derived from a diverse mix of 53 tenants

Mr George said that with low supply and high demand, office vacancy rates had reached record lows across Sydney and that commercial buildings in Darlinghurst were in high demand but rarely brought to market.

“The vacancy rate on the city fringe has contracted for the third consecutive year to circa 3 per cent, the lowest rate of any commercial market in Australia,” he said.

“This is underpinning interest in assets like 19a Boundary Street which offer strong fundamentals and a diverse tenancy mix.

“This property also offers significant upside with scope for a considerable uplift in the existing rents and potential for a future exit strategy via a strata subdivision.

“Given the building’s location, a conversion to a boutique hotel would be another possibility subject to the relevant planning approvals.”

The rental reversion potential is expected to be one of the key draw cards, with the building offering an average passing office rent of $770 per square metre gross.  

Mercer Property’s Tom Speakman said that the building’s tenancy profile had the potential to provide either an owner-occupation opportunity or allow an incoming purchaser to rework a large portion of office space.

“Leasing to a single, whole building tenant or whole floor tenancies offers the advantage of picking up an additional 15 per cent of net lettable area – all while bringing rents up to market,” Speakman said.

19a Boundary Street was repurposed as office space in early 2000. It offers character features such as high ceilings, polished concrete floors and exposed services

Speakman noted that the building owners had recently undertaken a building upgrade, including a new lift, new paint, end-of-trip facilities and an overall upgrade of all amenities.

“The Sydney market is experiencing above-average demand for heritage and creative stock,” he said.

“As the lines between work and play continue to blur, occupiers are increasingly looking to grow their businesses and retain talent in creative commercial spaces such as 19a Boundary Street, which are surrounded by superior amenity and new restaurant and bar concepts.”

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