Eight Parramatta Road sites have changed hands for a total of $41,805,000 as demand from retailers keen to expand their physical footprints ramps up post-pandemic.
In the most recent deal, a piano company has snapped up a Clyde site at 35-37 Parramatta Road with plans to open a major showroom.
CBRE’s Robert Dowdy negotiated the Clyde transaction plus the other recent sales amid heightened interest in high exposure, main road properties.
“Many of these sites are coming to market for the first time in decades, with 35-37 Parramatta Road attracting more than 120 enquiries after being offered for sale for the first time in 20 years,” Dowdy said.
The revitalisation of Parramatta Road and its positioning as one of Sydney’s major arterials has underpinned buyer interest, offering daily exposure to more than 30,000 cars, according to CBRE.
This has attracted major national and international brand heavyweights including Costco, Havey Norman, Kmart, Bunnings Warehouse, Coco Republic and Fantastic Furniture.
“Main road locations like Parramatta Road provide maximum brand exposure and owner-occupiers will pay a premium for that,” Dowdy said.
“Despite Covid and online shopping becoming more prevalent, shoppers still want to touch and feel the products, whether it’s furniture, electronics, clothing, self-storage or fast food.”
This was underlined by CBRE’s APAC Retail Flash survey, which reported 83 per cent of Australian respondents said they planned to open more stores this year, with just 8 per cent intending to decrease their network size.
The survey also found that 61 per cent of the Australian respondents plan to improve their store locations, while one-third intend to increase the size of their footprints to build more experiential elements into their stores.
Dowdy said this was driving buyer interest in Parramatta Road opportunities, as long-time owners moved to capitalise on the benchmark sales prices being achieved.
Other transactions in the past 12 months included:
211-217 Parramatta Road, Auburn sold for $7,165,000
218-224 Parramatta Road, Auburn sold for $4,700,000
1 / 2 Parramatta Road, Clyde sold for $3,560,000
259-263 Parramatta Road, Auburn sold for $8,500,000
293 – 295 Parramatta Road, Auburn sold for $3,545,000
709-711 Parramatta Road, Leichhardt sold for $4,800,000
147 & 149-151 Parramatta Road, Auburn sold for $4,775,000
The next test of the market is Phil Gilbert Toyota’s 3174sq m site at 66-72 Parramatta Road.
Robert Dowdy with John Hill & Co’s Sam Hill are managing the sale via an expressions-of-interest campaign that is due to close on June 8.
It was the first time the site had been offered for sale in 35 years, with the campaign expected to generate international buyer interest, Dowdy said.