Tiny Sydney ‘hole in the wall’ sells for $921,000

It’s literally described as a “Hole in the Wall” but one of central Sydney’s smallest retail spaces could prove to be a gold mine for one lucky investor. 

Highlighting the staggering demand for ground floor properties in the CBD, a local private buyer has snapped up the tiny five square metre retail opportunity for $921,000. 

Located at 229 Macquarie St, the property is currently occupied by a coffee shop under an 18-year lease and includes a 38sqm kitchen and a storage area on level four of the building.

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Savills Metropolitan and Regional Sales team led by Nick Lower, Selin Ince and Tom Tuxworth negotiated the deal and say the coffee shop capitalises from the high flowing commuter foot traffic along Macquarie Street as well as the 12 floors of commercial offices directly above.

The tiny 5sqm space has a 38sqm kitchen and a separate store area.

Ince says it is no wonder the property was snapped up. 

“In central Sydney, a lot of institutions are building up – ground floor space has become a commodity,” she says. 

“The true ground floor retail space equated to a staggering $184,200 not including the storage facility upstairs, further emphasising the demand for ground floor space in the CBD of Sydney.”

The property has a 38sqm kitchen area.

A key highlight in the sales pitch was the space is a fully leased investment returning $60,106 per annum, with the security of 11 years remaining on the lease and 2% increases each year.

The property is located 100m from Martin Place Station and just 200m from a Westfield shopping complex.

Ince says the property capitalises on its exposure with heavy foot traffic between the nearby train stations and law courts.