Significantly underdeveloped CBD building at 263 George Street, Sydney for sale

18 May 2022

A strategic and absolute prime land holding in the heart of Sydney’s CBD, 263 George Street presents a rare opportunity to acquire a 100% freehold interest in one of the CBD’s last remaining significantly underdeveloped boutique retail and commercial trophy assets.

JLL, together with Colliers, have been exclusively appointed to sell the prime CBD landholding directly opposite Australia Square, 263 George Street, Sydney via an International Expressions-of-Interest campaign and are expecting offers of more than $50 million.

JLL’s Capital Markets NSW Senior Director, James Aroney said, “The existing building provides an NLA of approx. 988sqm over 5 levels of prime retail & office accommodation with prominent frontage onto George Street, Australia’s premier boulevard, making it an ideal corporate headquarters or flagship retail branding.”

Sydney CBD’s Core Precinct remains the most desirable city location for local, interstate, and offshore developers given the demand that exists from owner occupiers and investors. The Core currently holds the lowest vacancy rate in the market at 9.9% and attracting a rental premium of 20% when compared to other precincts.

Mr Aroney said, “This scarcely available property is one of only four sub 600sqm development sites within Sydney’s Financial Core making it the greatest opportunity to develop a new boutique commercial building capable of catering to the city’s strongest leasing demand.”

Colliers’ National Director, Vince Kernahan said, “The permissible development is for a 17-level stand – alone boutique retail & office building of approx. 4,382 sqm gross floor area (GFA), subject to council approval (STCA). 

© 2022 Mark Merton Photography

“Such a development ideally matches the strongest and deepest cohort of leasing demand in Sydney’s CBD, that being for whole floors of less than 500 sqm. This cohort was the strongest prior to pandemic, but has only deepened since, and tenants are demanding prime quality space with abundant natural light and full floor security.

“There are a handful of similar buildings, albeit all refurbishments, that are attracting gross office rents of between $1,200-$1,450 sqm and a new building at 263 George St has the potential to eclipse these.

“The property’s strategic location and prime frontage onto George Street has been identified by the City of Sydney as an amalgamation site with the neighbouring Met Centre at 60 Margaret Street, creating a separate avenue for redevelopment of the entire block,” said Mr Kernahan.

Mr Aroney said, “Sydney CBD is undergoing significant revitalisation and 263 George Street is in prime position to take full advantage of the city’s unprecedented development and transport infrastructure boom. The city is busier than it’s been in years, with the Property Council of Australia’s latest Office Occupancy survey revealing that Sydney’s occupancy increased over 125% in March 2022 providing confidence that activity in the CBD will continue to grow.”

International Expressions-Of-Interest for 263 George Street, Sydney will close on Thursday 30th June 2022 at 4 pm (AEST).