The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
LESS THAN 30 DAYS UNTIL OUR FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
4 WEEKS UNTIL OUR FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
SECURE YOUR SPOTDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
OtherStaff WriterMon 12 Oct 15

Office Tenants Stake Their Claim On St Leonards

o

St Leonards is still high on the radar of new existing office users, with close to 10,000sqm of lease deals negotiated in recent months.

While much of the recent focus has been on St Leonards' residential potential, a CBRE review highlights continued demand from both new and existing office tenants.

Recent deals include a 1,800sqm lease involving Carloans.com.au (a part of Eclipx Group) and a 4,164sqm commitment from Primary Health Care. A number of large lease renewals have also been finalised to tenant such as Ramsay Healthcare (2,500sqm) and Next Media (1,800sqm).

CBRE Office Services Director Stefan Perkowski said the focus was on well positioned, quality buildings with a high level of tenant amenity.

“We’re continuing to see genuine buy-in from occupiers targeting St Leonards. Tenants that have been displaced as a result of residential conversions are taking the opportunity to remain in the area and upgrade their accommodation. We’ve also seen a number of new tenants enter the market to capitalise on the rental differential between St Leonards and nearby markets such as North Sydney,” Mr Perkowski said.

Stockland has been one beneficiary of the recent tenant activity, having leased circa 5,000sqm of available space in 601 Pacific Highway over the past 12 months. The building is now 100% occupied, with one of the newest tenants being Carloans.com.au, a part of Eclipx Group.

The finance broker, who was represented by Andrew Kane from CBRE GWS, will relocate to the building next month from Macquarie Park after striking a five-year lease deal over two whole floors.

Challenger has also capitalised on the current tenant interest, after signing medical group Primary Health Care to The Forum at 203 Pacific Highway. That building is now also 100% committed.

Mr Perkowski said a number of major lease renewals had also been inked in recent months by tenants who had conducted wide ranging reviews of alternate locations. These include Next Media at Space 207 and Ramsay Healthcare at 154 Pacific Highway.

“There is an inbuilt culture among many St Leonards tenants who like the work/life balance that the location affords, if they have a high proportion of staff living on the north shore,” Mr Perkowski said.

“The rental differential is another draw card, with rents for equivalent A-grade buildings some $100-$150/sqm below that of North Sydney.”

Withdrawals of stock for residential conversion have been another boon for existing office landlords. CBRE research highlights that at least 36,000sqm of stock is likely to be withdrawn over the next four years, representing 10.3% of the current market.

This involves five secondary buildings: 18-20 Atchison Street (1,818sqm); 472 Pacific Highway (11,728sqm); 504 Pacific Highway (11,083sqm) and 33 Herbert Street (6,065sqm).

Numerous additional owners remain in talks with council in regards to development applications for potential conversions, which could remove another 29,000sqm of stock.

As a result of conversions, CBRE’s current forecast is for the St Leonards vacancy to dip as low as 4.5% in 2017.

“As the overall market size declines, we expect that the occupier market will continue to tighten, shoring up occupancy in remaining buildings and placing landlords in a more favourable position,” Mr Perkowski said.

This has underpinned investor interest in existing assets such as 201 Pacific Highway and more recently 207 Pacific Highway.

OtherResidentialOfficeHealthcareAustraliaSector
AUTHOR
Staff Writer
"TheUrbanDeveloper.com is committed to delivering the latest news, reviews, opinions and insights into the best of urban development from Australia and around the world. "
More articles by this author
ADVERTISEMENT
TOP STORIES
Molti chief Ben Teague out front of 32 Mercer Road Aramadale (rendering)
Exclusive

Buy on the Sound of Cannon: Molti’s Counter-Cyclical Move to Melbourne

Leon Della Bosca
5 Min
Exclusive

Tapping the Bunnings ‘Halo Effect’

Taryn Paris
5 Min
Exclusive

‘Construction Not a Scale Game’: Hutchinson

Phil Bartsch
9 Min
Nation's build-to-rent project Charlie Parker in Sydney's Parramatta where more projects are being located and built outside the CBD.
Exclusive

Foreign Capital Still Dominates BtR but Things are Changing

Marisa Wikramanayake
7 Min
Exclusive

Fortis Reveals Plans for Coveted Bowen Terrace Site

Taryn Paris
4 Min
View All >
Singapore’s Furama Hotels reportedly picked up the Skye Suites for $68 million amidst an Australian acquisition spree.
Hotel

Sale of Sydney’s Sky Suites Year’s Biggest Hotel Deal

Renee McKeown
Justin Butterworth will speak on a panel at Urbanity 2025 on the Gold Coast.
Technology

Platforms Pump Up Rental Revolution: Justin Butterworth

Renee McKeown
Sponsored

HCP: Real Projects, Real People, Real Returns

Partner Content
HCP gives you real control: no pooling, no surprises, just secured loans with proven returns…
LATEST
Singapore’s Furama Hotels reportedly picked up the Skye Suites for $68 million amidst an Australian acquisition spree.
Hotel

Sale of Sydney’s Sky Suites Year’s Biggest Hotel Deal

Renee McKeown
3 Min
Justin Butterworth will speak on a panel at Urbanity 2025 on the Gold Coast.
Technology

Platforms Pump Up Rental Revolution: Justin Butterworth

Renee McKeown
4 Min
Finance

HCP: Real Projects, Real People, Real Returns

Partner Content
5 Min
Sherpa South Brisbane DA hero
Development

Sherpa Shifts Gaze from Beaches to Brisbane’s ‘Aria Territory’

Phil Bartsch
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/office-tenants-stake-claim-st-leonards