The implementation of a New Public Domain Strategy by North Sydney council late last year has rejuvenated the private sectors endeavour for investment in the region.
Aimed at prioritising urban life, pedestrian plazas and upgrading laneways for retail and nightlife, the new strategy will improve urban lifestyle and accessibility turning the precinct into a new hive of activity.
- 19 projects consisting of 20,000sqm of public space including new parks, plazas and enhanced network of streets and laneways.
- Victoria Cross Metro Station due to open in 2024.
- 3 minutes to Barangaroo Station and 5 minutes to Sydney Metro Martin Place Station.
- Expectation of 20,000 additional workers in the North Sydney CBD by 2036.
- A 33% increase from today.
Tenant absorption in North Sydney has been highly fragmented with premium and A-Grade seeing positive absorption while lower grades negative. This bodes well for new development opportunities looking to deliver high quality projects. According to Cardigal Market Pulse (August-21) vacancy rate in the top-grade office developments to 6.1%, while significantly the lower grades were in the double digits. (9.8%-21.7%).
The increased uptake is likely to follow a similar trajectory as the Melbourne CBD fringe with both for traditional financial and insurance companies targeting the area, as well as the less CBD-based traditional media and IT industries. Large companies currently based in North Sydney include, Coca-Cola Amatil, Cisco, Vodafone, Microsoft, Channel 9, Sony, Laing O’Rourke, SAP Australia, oOH!media and Genworth.
Increased public infrastructure investment in the Northern Sydney CBD provides opportunity for the private sectors to invest with more confidence. We currently have a major investment opportunity North Sydney, A-Grade commercial office development in due diligence.
There have been no changes to the Partners Fund or Agriculture Credit Fund portfolios this week. There are currently $1.2bn of investments sitting in the pipeline for the Partners Fund and $750m in the pipeline for the Agriculture Credit Fund.
