Commercial Market Breakdown - 3rd August 2018
Welcome to our first ever Commercial Market Breakdown, for July/August, 2018!
This month we’ve looked at dynamism in the commercial market. From trendy fitouts to whole new leasing processes, we’ve seen an increase of demand in alternative CBD’s for head offices including Western Sydney and Adelaide, driven by new developments and government planning strategies. The fruits of improved transport & infrastructure investment are also coming to bear – including the new Sydney Metro, and Western Sydney Airport.
GPT, AMP & Brookfield revise $1 billion Darling Harbour proposal
The joint proposal for redevelopment of Sydney’s Cockle Bay Wharf has undergone another set of revisions, in plans submitted to the NSW government earlier this month. Ambitious plans for a waterfront precinct, were originally formulated in 2014 with an application submitted in 2016. The group intends to transform Cockle Bay Wharf, with an office tower and retail complex over Sydney’s Western Distributor freeway. Among the recent revisions – they’ve proposed to reduce the height and size of the office tower by 12 metres, increase community space and reduced retail space. Read the full article (4 minutes).
The tide has turned in Adelaide’s office sector
A resurgence of the state’s key growth industries boosting the market to its strongest position in several years, reaching positive territory not seen since pre-GFC. A-Grade office space is under increasing demand in particular. Strengthening industries include medical research, technology, mining and manufacturing. More businesses in the area are looking at upgrading sites and interest from international investors is growing. Developments are currently taking place to improve Adelaide airport and The University of South Australia. As demand increases and pushes to B and C-grade buildings, more interest from developers is expected. Read the full article (3 minutes).
Why do we hear so much about swanky San Fran ‘campus-style’ office spaces?
‘New concept business precincts’, and ‘campus-style’ offices are all the rage – over the past decade anyone who’s had anything to do with commercial property – either as a tenant, agent, or tenant representative – has been inundated with these terms. Slick videos, images & articles showcasing their ‘next-gen’ qualities abound. So it’s no wonder we all feel a bit of San Fran’s magnetic pull. But what is feasible, and practical, for tenants here on the East Coast of Australia? I make the argument that we’ve got a lot going for us in our own backyard. Embracing the logistical blessings of our dense, high-rise major cities is essential, and there are many ways to incorporate ‘campus-style’ workspace benefits into high-rise offices. With a mind to ensuring real returns for tenants, on a given redesign, fit-out, or relocation, I explore how the ‘campus-style office’ question can be approached sensibly. Read the full article (12 minutes).
WeWork takes out entire lease of Barangaroo office building
Global co-working giant WeWork will lease all six floors of commercial office space, at Lendlease’s newly-approved Daramu House office building at Barangaroo South. 10,000 sqm, and approximately 2,000 WeWork members will be provided for at the new development. WeWork Australia senior director of real estate Jonathan Kearins said the site will “showcase the wonderful synergies between our classic [start-up] members and our enterprise corporates.” WeWork’s newest Sydney location is expected to open in early 2020. Read the full article (4 minutes).
Developers embrace ‘Metropolis of Three Cities’ in Western Sydney
Mackycorp, a Sydney developer, has lodged plans to build a 23-storey, $106.5 million project in the middle of Liverpool’s CBD. The building is planned atop the heritage-listed New Commercial Hotel, which will be refurbished, and include a two storey food court. The site’s proximity to the new Western Sydney Airport, its locality to transport and “Liverpool’s growing role as a financial hub”, make it an attractive prospect according to the developer. The news comes months after The Greater Sydney Commission released the Metropolis of Three Cities Vision, a plan that aims to spread jobs, housing and transport across the cities east and west to reduce commute times, and evenly distribute infrastructure. It’s great news that developers like Mackycorp are embracing the plans. Read the full article (5 minutes).
You’re welcome to forward this onto interested colleagues! Anyone can subscribe to receive future market breakdowns here.
And feel free to be in contact to discuss incentives in the market or other property aspirations – you can email me here.