North Sydney is fast returning to its golden days as the serious contender for office tenants to the Sydney city.
The vacancy rate is heading south and rents are rising, agents say. The average vacancy level is below 8 per cent and rents are nearing city prices of up to $800 per square metre per annum for premium sites.
There are cranes back on the skyline and tenants are lining up for new space, such as CBRE, which is moving to the new 177 Pacific Highway tower.
One development is by DEXUS Property Group at 100 Mount Street in North Sydney. The group has appointed JLL national head of leasing, Tim O'Connor and JLL head of office leasing North Sydney, Paul Lynch, to partner with DEXUS's leasing team, headed by Chris Hynes, on the project's leasing.
DEXUS executive general manager, office and industrial, Kevin George said the group had received some strong inquiries to lease the office space since it was announced they had agreed to acquire 100 Mount Street.
"Now that we have settled on the acquisition, we can progress leasing discussions," Mr George said.
"This development strongly supports the revitalisation of North Sydney which is set to benefit from improved amenity including the proposed Sydney Metro line, as well as continued tenant demand for quality product in a market that has limited prime grade options."
Mr George said the project is expected to be completed at an opportune time in relation to Sydney office market supply fundamentals.
The tower at 100 Mount Street is a 34-level premium office development spanning 41,163 square metres, providing office floor plates ranging from 1200 to 1300 square metres and a 2.85-metre floor to ceiling height.
The building will feature highly transparent glazing with integrated automated blinds, high levels of customer amenity, including end-of-trip facilities and concierge, and services designed to accommodate higher density tenancy operations. The development will target 5-star Green Star and 5-star Nabers energy ratings.
CBRE has also highlighted the area for growth and plans to move its North Sydney office to 177 Pacific Highway, continuing a global roll-out of new workplaces designed around wellness, flexibility and activity-based working.
To initiate the move, CBRE has leased level 29 at North Sydney's newest office tower, due for completion in August. The deal delivers CBRE 1498sq m of space on a seven-year lease term.
It is the latest commitment for the 40,000sq m building, which is being developed by CIMIC Group through Leighton Properties on behalf of Suntec Real Estate Investment Trust.
CBRE joins a high-profile roster of tenants readying to move into the building, alongside Jacobs and Vodafone.
CBRE's North Sydney managing director Ryan Johnson said the move would cater for the significant growth that had occurred in the company's North Shore business, which comprises 145 commercial and residential staff.
"Our aim is to create a world class environment for our clients and staff that is energised and highly collaborative and where our clients could generate maximum advantage," Mr Johnson said.
CBRE has engaged international design firm Gensler to create the concept plans – drawing on its experience in designing a range of CBRE offices globally under a model known as Workplace 360l.
