Owner-occupiers in Sydney City Fringe commercial property

The Sydney City Fringe commercial property market has witnessed a surge in activity, particularly for smaller properties priced under $20 million.

We’re pleased to see an increasing number of owner-occupiers entering the market.

While investors continue to be active in Sydney city fringe commercial property, seeking higher yield and the potential for future development, owner-occupiers have emerged as a formidable force. Our owner-occupiers are motivated by the desire for long-term stability and certainty in their business operations.

A key reason for owner-occupiers’ preference for this market is the potential to secure suitable premises while avoiding the risk of escalating rental costs. In buying a property for their business, over the longer term they establish a stable foundation for their business operations and can expect their property to deliver capital growth.

Shop tops and industrial assets

The financial year 2023-2024 saw around $70.5 billion change hands for traditional commercial assets in the sub-$20 million price range.

With this subsector of the market, shop tops and former industrial properties adapted for reuse have proven to be popular, although further out from Sydney fringe areas, industrial assets dominate.

Shop tops like this one we sold recently in Summer Hill offer the benefit of a separate income stream if owners choose not to live in the residential section of the shop top. Tenants provide owners with a separate revenue stream, providing a buffer should there be a downturn in the economy that affects their business.

This trend aligns with the observations made in the Inner West and City Fringe markets.

Owner-occupiers are actively seeking properties that meet their specific needs and provide long-term value. The market’s resilience, even in the face of economic challenges, reflects the strong demand from this segment.

How we help with Sydney City Fringe commercial

At Ray White Commercial Sydney City Fringe, we work actively with owner-occupiers to help them to secure the right property or we can help them with an exit plan. Many of our clients are ready to retire and wish to realise the value of their assets to help fund their plans for the future.

We take the time to get to know our clients, their life goals, financial goals and any aspects of their property that give it an edge. We’re dedicated to ensuring we can find suitable opportunities for our clients, help them make informed decisions and achieve their goals. With decades of experience under our belt, we have the connections our clients need. Our advice isn’t a ‘one-size-fits-all’ approach. We personalise our advice for each client as while two properties and two clients might seem similar, no two are exactly alike.

The Sydney City Fringe commercial property market is thriving, driven in part by the growing number of owner-occupiers. Their desire for stability, certainty and equity in their business operations means they’ve become a significant force in the market. We’re happy to help, understanding the needs and motivations of owner-occupiers to provide effective guidance and support.

Let us help you with your commercial property

As dedicated local commercial real estate agents, we can help you extract more value from your commercial property. Please get in touch to discuss your circumstances and assets so that we can give you personalised advice. Whether it’s commercial leasing, management or sales, we’re here to help you with your Sydney-based commercial property.

Contact us at Ray White Commercial Sydney City Fringe