Sydney's North Shore a big draw with commercial property investors
The North Shore office markets of North Sydney, St Leonards, Macquarie Park and Chatswood are reaping the benefits from an increase in domestic and offshore investment.
Low interest rates, major new infrastructure and rising effective rentals underpin this investment demand, according to a new report by CI Australia on the North Shore.
Major new North Sydney CBD developments scheduled for completion in 2018/19 will pre-lease to major corporates and create an onflow of service tenants to North Sydney. B Grade rentals and values will rise due to stock withdrawals, says the report.
“A supercharging of densities and land uses will continue as the NSW government continues to focus on mixed-use development surrounding existing infrastructure,” says the report.
The Sydney Metro project and improved road infrastructure will boost investment and consolidate the position of North Sydney and the North Shore markets as the essential elements of Sydney’s economic arc.
“Expect further downward pressure on yields for North Shore secondary assets as effective rental growth crystallises.”
The Market
The Sydney North Shore is a collection of four commercial markets located close to the Sydney CBD.
The area extends from the Northern end of the Sydney Harbour Bridge through to major northern metropolitan areas, such as Macquarie Park.
Characterised by its dynamic central core, The North Sydney CBD has historically been regarded as the focal point of the North Shore office market. However, in terms of total office space, it has been eclipsed by Macquarie Park, which now sits as NSW’s largest office market outside of the Sydney CBD.
The North Shore area is an active environment for developers, investors and tenants seeking opportunities made available through its broad and diverse markets, offering a variety of size, use and growth potential.
When combined, these four markets provide a total 2,295,907sqm of commercial office space. These include:
1. North Sydney 822,496sqm
2. Crows Nest/St Leonards 315,542sqm
3. Chatswood 278,919sqm
4. Macquarie Park (MP) 878,950sqm
