A Focus On Sydney's Upcoming Commercial Stock

July 21, 2021
Commercial Real Estate

The effects of the pandemic have been far-reaching and have fundamentally changed the way we do business. Off the back of this, many companies have been forced to make some tough decisions regarding their leased commercial real estate to identify savings. 

This has spurred on a sharp increase in vacancy rates (from 5.6% in July 2020 to 8.6% in January 2021) largely due to:

  • An unprecedented increase in the amount of subleasing stock available
  • New stock due to hit the market over the coming 12 months
  • A shift to more flexible options (like remote working and coworking) as companies attempt to resolve what the future looks like for their business

Here’s what’s on the cards in terms of new refurbishments and stock in the Sydney CBD. 

Recently completed

Wynyard Place

Wynyard Place - New Sydney Stock

This new precinct over Wynyard Station offers two restored heritage buildings, a four-level public concourse, premium retail space and a 27-level 6 Star Green Star-rated office tower.

NAB has already pre-committed to this space (securing over 31,000 of the 86,000 sqm available), which is set to become their new head office and includes all office floors in the adjacent Shell House heritage building and levels 1-9 of 10 Carrington Street.

275 George Street 

275 George Street - New Sydney Stock

Premium office building that was completed in 2020 that is currently 40% committed and offers 7,300 sqm of office and retail space across 15 levels. 

Due to be completed by 2022

Salesforce Tower (Circular Quay Tower) - 180 George Street

Salesforce Tower - New Sydney Stock

Circular Quay Tower, a new skyscraper currently under construction in Circular Quay, is destined to become Sydney's tallest office building (offering circa 54,000 sqm of space). 

Recently dubbed "Salesforce Tower Sydney," the building has secured US software Giant, Salesforce as its anchor tenant, with the company pre-committing to nearly 50% of the available commercial space.

Quay Quarter Tower - 50 Bridge Street

Quay Quarter Tower - Sydney stock

Scheduled for completion in 2022, The Quay Quarter development will span two city blocks and offer over 88,274 sqm of commercial, retail and residential space. More than a year ahead of completion, over 85% of the commercial stock has been pre-committed by anchor tenants AMP, Deloitte and top tier law firm Corrs Chambers Westgarth.

Poly Centre  - 210 George Street

Poly Centre - Sydney Stock

Construction of this new A-grade office tower, which saw initial construction delays, is currently underway, consisting of 19,700 sqm of office space (27-storeys) and 1,000 sqm of retail.

Refurbished stock

It’s anticipated that an additional 50,000 sqm of refurbished stock will come on the market by the end of 2021, including 2 Market Street with Amazon committed to the building. 44 Martin Place and 570 George Street are also expected to be available by the end of the year. However they do not currently have any major commitments.

Once the refurbishments are complete, landlords are likely to scale back upgrades and refurbishments to fill in existing vacancies and new vacancies being created by tenants moving into new stock. 

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