The effects of the pandemic have been far-reaching, forcing many companies to make tough decisions regarding their leased commercial real estate.
This has spurred on a sharp increase in vacancy rates, now sitting at an average of 9%, primarily due to:
Here's what's on the cards regarding new refurbishments and stock in the Sydney CBD.
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.
Circular Quay Tower, a new skyscraper currently under construction in Circular Quay, will 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.
The Quay Quarter development, scheduled for completion in 2022, 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.
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.
121 Castlereagh is a luxury mixed-use project developed that's being developed by Scentre Group and Cbus Property. Once completed, it will offer six levels comprised of 11,500sqm of premium-grade office space and a 6,200sqm extension of Westfield Sydney's luxury retail. A central atrium will connect workspaces to maximise natural light and "inspire connectivity."
With views of Sydney Harbour, Hyde Park and Town Hall, this project will offer 47,800sqm premium grades commercial space across 39 storeys and 1,290sqm of retail across two levels. It will also be integrated with the new Pitt Street metro station and will include over 500 sqm of outdoor space.
Over 27,000 sqm of refurbished stock recently came onto the market with the completion of 44 Martin Place and 570 George Street. And circa 50,000 sqm of refurbished stock is set to come online thanks to the 255 George Street and 33 Alfred Street projects, due for completion in 2022 and 2024, respectively. At 255 George Street, BoQ, Bupa and BPay are already key tenants and the ATO has also just secured two levels (over 13,000sqm).
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