Office leasing deal raises the bar in St Leonards

A St Leonards office leasing deal has been hailed as achieving a record for the suburb as tenants look for alternatives to rising rents in North Sydney.

JLL negotiated a three-year lease at 118-120 Pacific Highway on behalf of W&W Property Pty Ltd for $640 per square metre net.

The new tenant, New Hope Group, occupies a 491sqm suite.

JLL’s Director, Office Leasing Stephen Harrison says the deal has recorded the highest ever gross effective rent in St Leonards, which is experiencing its lowest office vacancy in two years.

“Record low vacancy and rental growth in North Sydney is pushing tenants to seek alternative options in other north shore markets,” Mr Harrison says.

“The evolution of St Leonards continues to see secondary buildings being redeveloped for residential. Reduced office supply is having a positive impact on the market. 

“St Leonards is seeing strong activity with JLL research recording Q4 2018 prime gross effective rent growth of 6.8 per cent for the quarter. This translated to growth of 13.7 per cent over 2018, which is positioned extremely well against the 10-year historical average of 2.8 per cent, per annum. 

“This above-trend growth is forecast to continue in the St Leonards office market through 2019.”  

The office suite is located in the seven-storey B-grade Clemenger Building, which has panoramic views of Sydney CBD and harbour, is close to Royal North Shore Hospital, St Leonards station and Sydney CBD bus routes.