There are at least six new leases ready to be signed along Sydney's north shore that will deflate the vacancy level in the coming year.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
According to agents, the busiest tenants are from the information technology sector, such as internet providers, which have more stability than the former "dotcom" companies that went bust very publicly in the early 2000s.
The prime leasing market in North Sydney is once again continuing to tighten, with vacancies reducing from 5.1 per cent to 4.7 per cent in 2014.
The Property Council of Australia will deliver its bi-annual office market report early in February, and agents are predicting better figures for North Sydney and stretching to St Leonards and Chatswood.
The conversion of older office blocks into apartments has also helped ease the vacancy levels for the commercial area.
Harry Triguboff's Meriton Apartments has been one of the more aggressive in the area, expanding his already strong presence in Macquarie Park and Chatswood.
In September last year, the developer bought a site in North Sydney for a $200 million, 250-unit serviced apartment complex at 80 Arthur Street and is developing its two-tower Centrium Apartment complex in Chatswood, which will comprise 30 storeys of more than 200 luxury apartments.
JLL's head of office leasing for North Sydney, Paul Lynch, confirmed there are five to six large tenant requirements in the market which are expected to complete in the first half of 2015 across North Sydney, St Leonards and Chatswood.
"These respective moves will assist in further reducing vacancy rates across all key north shore office markets," Mr Lynch said.
"North Sydney, St Leonards and Chatswood all benefited from improving business confidence; particularly in the information technology and construction sectors.
"Increased government infrastructure spend has benefited a number of local and overseas companies; 2014 finished on a strong note with the total north shore vacancy down on 2013 and further improvement anticipated in the first half of this year."
Mr Lynch said significant lease deals completed in the fourth quarter of 2014 were reflective of the stronger market.
"There is a diversity in the inquiry ranges and there are still some sizeable tenants looking for space, but prefer the north side to the more expensive and busier Sydney city," Mr Lynch said.
The recent leases includes BBC Worldwide, which took up 1800 square metres of office space at 35 Mitchell Street, McMahons Point; Toll Priority, which leased 500 square metres at 207 Pacific Highway, St Leonards; HBA Learning Centre, which leased 633 square metres at 118 Walker Street, North Sydney; and the International School of Colour and Design (ISCD), which leased 579 square metres at 118 Walker Street, North Sydney.
Another attraction for the area is the start of construction and the pre-commitment of Leighton Holdings to 177-199 Pacific Highway, North Sydney.
