Sydney's North Shore

The full report

Office markets in Sydney’s North Shore comprise the powerhouse suburbs of North Sydney and Macquarie Park, in addition to the smaller hybrid markets of Chatswood, and Crows Nest/St Leonards. Collectively they amount to 2,289,125 sq m – roughly 45% the size of the Sydney CBD. 

Suburb by suburb as of July 2017 the PCA (Property Council of Australia) recorded 873,693sq m in Macquarie Park, 822,496sq m in North Sydney, 314,017sq m in Crows Nest/St Leonards and 278,919sq m in Chatswood. Collectively these markets comprise of 51% Prime grade office space (Premium and A Grade) and 49% Secondary grade. (Grade B, C and D).

North Sydney

Five Quick Stats from Sydney's North Shore

1. The year to December 2017 was characterised by Sydney's strong CBD leasing market spilling over to the North Shore. North Sydney remains attractive as its Prime grade rents have been recorded at a 25% discount to equivalent Sydney CBD stock.

2. The construction of two new towers (which will add 103,000 sq m) is leading a precinct rejuvenation in North Sydney. Both towers are well positioned to benefit from the Sydney Metro in 2024.

3. There are approximately 1,700 apartments either planned or under construction within the North Sydney and Crows Nest/St Leonards precincts. The smaller hybrid markets of Chatswood and Crows Nest/St Leonards are facing somewhat of an identity crisis as residential developers have continued to purchase and redevelop secondary grade stock in order to take advantage of Sydney's booming housing market.

4. Over the year there were 26 asset transactions totalling $1.6 billion on the North Shore and in Macquarie Park. Strong demand from both domestic and foreign investors should continue due to the long-term low interest rate environment.

5. Yield spreads between Prime and Secondary grade stock compressed over the year as residential developers made plays to acquire sites with development upside. We anticipate yield compression to continue, albeit at a slower rate.

Click here to download the full Sydney's North Shore Office Markets report