Sydney's rising skyline is expected to eventually result in an increase in office tower rents, according to Knight Frank agents.
Knight Frank's latest research, Global Cities: Skyscrapers 2015 report, discusses the current global skyscraper building boom and the benefits of these giant buildings. According to the report, skyscrapers are the optimum means of addressing major economic and geographic challenges facing cities today.
Knight Frank's Head of Office Agency for Australia John Preece said, "From a commercial perspective, landlords can charge higher rents for upper floors, which could support the commercial position for high-rise development. Rents in Sydney's premium towers are also increasing."Knight Frank is the leasing agent for the Gateway building at 1 Macquarie Place, and recently secured Sydney's highest rents to date of $1,550 per square, per annum net.
"Gateway attracts international tenants because it is a premium-grade building offering uninterrupted views of the Sydney Harbour Bridge and Opera House. At present, Knight Frank has no vacant space available for lease but has a waiting list of interested tenants who would like to become occupiers," Mr Preece said.
View the full Knight Frank Global Cities: Skyscrapers 2015 report here.