"At a time when Sydney office supply is generally tight across the board, due to building withdrawals to make way for the new metro system and the abundance of office conversions to hotel and residential uses, the availability of vacant space suitable for education uses is particularly scarce," Mr Algie said.
The Salvation Army (NSW) Property Trust has leased 2900sq m in office space at its B-grade 10-level building at 140 Elizabeth Street to education providers the Australian Academy of Commerce & Cambridge International College.
The college has agreed terms on a five-year lease for the whole of levels 5 to 10 and four parking spaces.
While rents were confidential, it is understood the lease was struck at gross annual rent of $535 a square metre with a small incentive.
MMJ Real Estate's Cameron Algie and Chris Johnson negotiated the lease.
The tenant had to act quickly on the deal, Mr Johnson added.
The 140 Elizabeth Street block was built in 1990 on a 1047sq m site.
It was previously the administrative headquarters for The Salvation Army, but following the acquisition of new offices in Redfern the charity organisation turned Elizabeth Street into an investment property.
The Salvation Army's church, Sydney Congress Hall, still occupies the bottom four levels of 140 Elizabeth Street.