DEXUS (DXS.AX)

Sydney office block sold at 16% discount as rates, remote working hit sector

Australian real estate firm Dexus said on Friday it had sold an office building in downtown Sydney, with the buyer receiving a 16% discount on a 2022 valuation as higher interest rates and home working crunch prices for office space. Reuters reported on Wednesday that the company, one of Australia's largest landlords, had signed a conditional deal last month to sell its Margaret Street building in Sydney's central business district, citing its annual report. The property industry globally, and office building owners in particular, are struggling as working from home and e-commerce lead tenants to reconsider floor space just as higher interest rates reduce building values and raise debt servicing costs.