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News release

Sydney

Renewed enthusiasm in the Chatswood office leasing market

JLL leases 15,000 sqm of office space in four significant deals in the last 18 months


​​SYDNEY, 19 APRIL, 2014 – Chatswood on Sydney’s North Shore is showing renewed enthusiasm as improvement in space take up and market activity ramps up in 2014.

In the last 18 months, JLL’s North Sydney Leasing team has brokered approximately 15,000 sqm of office space in four significant deals, accounting for four of the five largest deals in Chatswood since 2010 and representing approximately five per cent of the Chatswood office market.

JLL’s Director of Leasing – North Sydney Paul Lynch said, “The four deals all represented long-term commitments to Chatswood by businesses who relocated from outside of the North Shore. Coffey International secured 3,500 sqm at Citadel Towers; Real Insurance leased 5,000 sqm at 465 Victoria Avenue, while Lend Lease took up 3,000 sqm at 465 Victoria Avenue. More recently, Lend Lease took up a further 3,200 sqm at The Zenith, Chatswood.

“The first quarter of 2014 has proved very positive for demand not only in Chatswood, but across the entire Lower North Shore. There are a healthy number of larger enquiries seeking prime grade assets. Chatswood has a number of A-grade buildings in demand by occupiers given its transport infrastructure, amenity and importantly, the cost-effectiveness of the market.  We expect to see a shortage of quality stock in the second half of 2014,” said Mr Lynch.

One of the recent deals brokered by Mr Lynch was for Lend Lease Management Services, who secured approximately 3,200 sqm on Levels 3-5, Tower B, The Zenith, at 821 Pacific Highway, Chatswood. “The property was previously occupied by Cisco Systems, and we managed the new lease with only a short period of effective vacancy. Lend Lease currently occupies space at 465 Victoria Avenue on Levels 13-15, and are increasing their footprint in Chatswood.” 

Mr Lynch said the reasons behind the increase in demand are threefold. “Firstly, construction and engineering is starting to ramp up, led by groups such as Lend Lease and Leighton with an increase in project activity. Secondly, the North-West Rail Link Project, which will run across 15km of tunnels from Epping through to Bella Vista, is increasing demand for office space from both local and overseas businesses.

“Most importantly, an increase in transaction activity is directly attributable to an overall improvement in market sentiment. Business is increasingly confident and moving forward with occupancy decisions. We anticipate these factors will continue to drive activity across the North Shore office leasing market in 2014,” concluded Mr Lynch.