News
Macquarie Park the new hot spotLEASING in the Macquarie Park/North Ryde area is heating up even as the rest of metropolitan Sydney appears to be hitting a stumbling block.
Optus has appointed agents to look for more space in the district as its business grows and other industries are following.
It has been a bumper few years for new construction in the area, which is now the second-largest office market outside the Sydney CBD.
In Macquarie Park, 46,000 square metres of new space were completed in the first half of this year - more than any other market in Sydney, according to CB Richard Ellis.
But the construction boom has come at a cost, with vacancy levels about 12 per cent and strong incentives on offer.
However, the global research analyst at CBRE, Luke Nixon, said tenant demand had remained strong and this had kept rents and incentives relatively stable in the six months to September.
Indeed in the past 12 months, the North Ryde/Macquarie commercial precinct outperformed all other NSW suburban markets in terms of net absorption and leasing activity.
''Macquarie Park's office market continues to expand despite the trying financial conditions,'' Mr Nixon said.
''Now that the new Epping to Chatswood rail link has been fully integrated into the CityRail network, Macquarie Park is gaining popularity with prospective tenants, with the market able to cater for large requirements at a significant discount to surrounding locations.
''This is drawing tenant interest from the traditional North Shore markets, as evidenced by CSR's recent relocation from Chatswood.''
The 340-hectare Macquarie Park/North Ryde precinct incorporates an estimated 800,000 square metres of commercial space and there is a proliferation of multinational companies there.
The director of office and industrial parks at CBRE, Simon van Grootel, said railway access, cost-effective rentals and attractive parking provisions were underpinning tenant interest in the Macquarie Park office precinct.
CBRE's analysis shows 18 leasing transactions totalling 25,000 square metres have been completed in Macquarie Park this year, with at least another 15,000 square metres of deals in the pipeline. Some of the deals are: Field Force (1984 square metres), Konica Minolta (4300 square metres) and Kenwood (1345 square metres).
Cheap rents are one of the key factors working in Macquarie Park's favour. Mr van Grootel said CBRE analysis showed tenants relocating from the centre of Sydney could cut rental costs by up to 67 per cent based on comparable, A-grade quality buildings. Those moving from North Sydney could save up to 50 per cent.
Source: Sydney Morning Herald
Posted: 01.11.2009