Office leasing deal raises the bar in St Leonards
Above-trend growth is forecast to continue in 2019, according to JLL
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.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of over 90,000 as of December 31, 2018. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com