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News release

Sydney

Office vacancy rates in North Sydney and Chatswood expected to reach single digits

As a sign of improving business sentiment, North Sydney office vacancy is anticipated to come under 10% for the first time in 12 months, while Chatswood is expected to record sub-10% vacancy for the first time in over two years


​SYDNEY, 26 September, 2014 – Office vacancy rates in North Sydney and Chatswood are expected to reach single digits in the second half of 2014 for the first time in 12 months and two years respectively, according to JLL. 

JLL’s Director of Leasing for North Sydney, Paul Lynch, said this expectation is due to the latest leasing transactions, in addition to several larger enquiries in the pipeline which are expected to transact during the latter part of 2014.

“The news for the North Shore is one of continued improvement. Tenant demand is on the rise; particularly across the Prime-grade sector, with expansion and consolidation activity taking place. Taking into account lower building vacancy, we expect to see a timely correction in tenant incentives,” said Mr Lynch.

In Chatswood, JLL has recently finalised over 4,000sqm in deals to Quick Service Restaurant Holdings (2,200sqm) and Lenovo Australia (2,000 sqm), who have both taken up space in the office tower Solitaire, located at 12 Help Street.  “This year alone, Chatswood has secured 10,000sqm of transactions over 2,000sqm – all tenants either expanding or relocating to this market. We expect this activity to continue as Chatswood is increasingly seen as a critical transport and retail hub,” said Mr Lynch.

The story is similar for North Sydney. Sony Entertainment recently decided to call North Sydney home, relocating from Macquarie Park to over 2,300sqm in the newly refurbished 165 Walker Street. Northpoint, located at 100 Miller Street, is also benefitting from expansion opportunities, having recently secured Corporate Traveller (a division of Flight Centre) as a tenant.  “These deals confirm activity at the larger end of the market is being driven by business expansion and consolidation of sites. There are a number of tenants looking to relocate their collective operations under one roof,” said Mr Lynch.

Mr Lynch said leasing momentum has continued throughout the year. “We have been working with a number of active enquiries greater than 1,000sqm across North Sydney, Chatswood and St Leonards, which we anticipate will come to fruition in the 2014.”