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.
- Emerging to make the rise of buildings both possible and cost effective.
- Rapid population growth in cities across the globe is creating megacities. For western cities, towers offer a means of matching the popularity of living near work in densely-developed inner cities.
- Rather than technology making businesses spread out further, which was expected, the new wave of digital companies has shown a strong propensity to cluster. This is anticipated to grow in the future, which may spur a raft of new skyscrapers.
- The outward spread of cities can create problems of extending transport networks, building on green fields, and imposing longer commutes on staff. It can also create political and municipal funding problems, while skyscrapers reduce the need for sprawl.
- With towers allowing more people to live in the centre, CBDs no longer become ghost towns outside of office hours, encouraging a weekend and evening economy of shopping, culture and tourism.
View the full Knight Frank Global Cities: Skyscrapers 2015 report here.
