The regeneration of Sydney CBD is underpinning a relatively favourable period for secondary rental growth making the commercial property market particularly attractive, according to leading commercial, retail and industrial real estate agency Gunning.
Gunning leasing, sales & brokerage agent Simon Larkins said at a time when smaller tenants are becoming more active in the leasing market, secondary stock remains limited as older buildings are withdrawn from the market for alternative uses or redevelopment.
“Tenant demand in the Sydney CBD has picked up markedly over the past year and resulted in the vacancy rate remaining at a six-year low of 6.3 per cent,” Mr Larkins said.
Mr Larkins who recently joined the team at Gunning as part of their expansion plans said following recent withdrawals, gross face rental growth in the secondary market is currently at its highest level since early 2009, increasing 7.5 per cent in the 12 months from January 2016.
“It’s a great time to be a landlord,” Mr Larkins said.
Gunning Principal Malcolm Gunning said the appointment of Mr Larkins is a reflection of the demand that the agency has seen in regard to leasing, sales and office space brokerage in recent times.
“Simon has intimate and extensive knowledge of the Sydney office market,” Mr Gunning said.
“He has contacts across thousands of different office leasing opportunities throughout Sydney, and in particular the CBD.
“Simon is a real estate professional whose determination, proficiency and commitment to his clients has seen him achieve exceptional results. His appointment is a reflection of the current upswing in the market which has been favourable for our agency and has seen us grow to close to 20 staff,” Mr Gunning said.
Mr Larkins, formally of from MMJ Real Estate will work out of Gunning Surry Hills.