The first new strata office project to be developed in the Sydney CBD for a decade has hit the market amid strong buyer demand.

The project, known as Merchant, is being undertaken by W Property – owned by Michael and Prue Williams - following their acquisition last year of a stratum of 49 serviced residential apartments over the lower seven levels of a building at 3 Hosking Place, located behind Martin Place in the city’s financial core.

The 49 residential apartments will be transformed into office space, with the end offering to buyers consisting of 42 boutique strata commercial suites ranging in size from 36sq m to 113sq m, all of which will have a private bathroom, galley bar and balcony.

The building will also have exclusive shared facilities including a full-time concierge, a lobby café-bar, communal workspaces, meeting rooms and end-of-trip facilities for occupiers.

Priced from $792,000, the strata suites are being marketed for sale by Andrew Harford and Jessen O’Sullivan of Knight Frank in conjunction with Tim Noonan and Ben Kennedy of Noonan Property.

W Property’s Michael Williams said Merchant was a follow up to W Property’s development at 350 George Street, with strata space in that project now selling for $30,000/sq m, making it the most expensive commercial strata space in Australia.

“We have a wait list of buyers for 350 George Street, with very few owners wanting to sell,” he said. “That provides strong evidence that there is high demand for quality strata space in the Sydney CBD, and hence why we have decided to do the nearby project at Hosking Place.

“It is unusual for a residential building to be transformed into commercial space, but we are confident our unique design will be a success.

“We have modelled Merchant off 350 George Street, but we have added many more shared facilities for occupiers, as well as balconies.

“The strata space in Merchant will also be more affordable than the heritage building at 350 George Street, at circa $20,000 per square metre, so we anticipate strong buyer demand when it launches to the market next month.”

W Property’s Prue Williams said the design and unique offering of the boutique strata suites in Merchant was reflective of the changing demand from occupiers in the office space.

“Merchant provides a whole new type of strata space – it’s a hybrid between conventional strata offices and a lifestyle offering,” she said.

“This is the way offices are going; they are much more lifestyle driven than corporate driven.

“We have really moved away from the corporate design and tried to incorporate personality to create a point of difference.

“The project provides more of a club-like feel than traditional strata offices, with exclusive facilities for the 42 owners that will be part of the building’s community, while the suites are quite luxurious and intimate.

“We believe it will attract businesses looking for something a bit different; particularly those that want their commercial accommodation to reflect who they are and what they do.”

Knight Frank’s Andrew Harford said the new strata space would fill a gap in the market left by the compulsory acquisition by the New South Wales Government of eleven buildings in the CBD, announced last year to pave way for the Sydney Metro Western line.

“Owner occupiers displaced by the acquisitions commencing at the end of 2022 will be looking for alternative space for their offices,” he said.

“There is also strong demand in the market from occupiers reducing their space requirements following COVID, including for those who are now living or working remotely but still want a CBD-based space for days they need to be in the city.

“There is a distinct lack of quality strata space in the CBD, particularly with the facilities that this project will offer.

“In the past owners have bought office buildings and strata titled the space to sell off, but these projects haven’t been undertaken for some time due to the economic landscape.

“This project will not only be the first new strata space to come to the market in more than a decade, but it will be a very different offering, which is something buyers are looking for.

“It will give businesses a chance to own a slice of the CBD, in a precinct dominated by Institutional owners, at a time when there is a dwindling supply of strata space, and we expect buyer competition for these suites to be strong.”

To request a copy of the Information Memorandum please contact one of the marketing agents Andrew Harford and Jessen O’Sullivan of Knight Frank in conjunction with Tim Noonan and Ben Kennedy of Noonan Property via the contact details below.