Demand on CBD fringe strong

By Carolyn Cummins, The Sydney Morning Herald

"WITH the redevelopment of the southern end of the central business district, fringe areas such as Glebe are benefiting from new infrastructure and expanded commercial offerings such as the Broadway shopping centre and the planned $2 billion Fraser Property project.
The accelerated development of residential buildings in the area has led to a rise in commercial values of about 30 per cent over the past two years to $6000 per square metre, while leasing rates have grown 25 per cent to $550 sqm. The vacancy rate is about 5 per cent.
Property developers say that, with many of the historic buildings in the suburb transformed to residential apartments and spare land becoming scarce, commercial property is proving to be in strong demand, especially on Glebe Point Road.
One such site is the former Valhalla cinema and another is the Glebe Post Office.
Portfolio Realty is offering 252 sqm of office space in the Glebe Post Office for rental at $280 a square metre, while the former Valhalla complex has been transformed into a commercial office complex, with 42 work studios, while retaining the existing shops and lobby.
The Valhalla studios have been developed by W Property.
David Brown, principal of the selling agent DB Property, said there has been strong demand from small service companies keen to buy and lease space in these types of buildings. ..."

Read the full article from The Sydney Morning Herald here.