Tenant demand for A-grade office space in North Sydney is on the rise, with one building seeing four occupiers commit in the month of June alone. The deals, which were negotiated by Euan Matheson of Knight Frank and Dan Walker of Colliers International, were concluded within the range of between $720/sq m to $850/sq m per annum net.

Four parties have signed leases at 100 Arthur Street in June, taking on a total of nearly 3,000sq m.

The tenants have leased the following space in the building, across four deals:

• Automotive group SAIC has leased 950sq m on level 19
•  A multinational technology company has leased 1370sqm on level 18
• Project Management and Capability Development Consultants blueVisions has leased 300sqm on mezzanine level
• An aviation group has leased 300sq m on the upper ground level

The deals, which were negotiated by Euan Matheson of Knight Frank and Dan Walker of Colliers International, were concluded within the range of between $720/sq m to $850/sq m per annum net.

Euan Matheson said office occupiers were increasingly prioritising quality over price point, as work patterns shift post COVID.

“The common theme in these four commitments is occupiers gravitating to quality - of premises, location and amenity,” he said.

“This is benefitting quality A-grade stock in the North Sydney office market, with demand for whole floors rising, and take up surpassing that for B-grade floors.

“The reverse has been true over the past 12 months, with fitted floors seeing the strongest leasing activity, but now the tide has turned.

“This is being driven by a move away from price-led decisions to take on an existing fitout, as occupiers prioritise attracting staff back to the office via a high-quality working environment.

“Many occupiers are now recognising that working from home patterns are here to stay, meaning they can commit to less floorspace than before. This presents an opportunity to upgrade the calibre of their premises whilst remaining within their existing occupational budget.”

Dan Walker said in the case of 100 Arthur Street, the owner, CLA Real Estate, had invested strategically to elevate the overall working environment of the building, which was attracting tenants looking for quality space.

“One of the major drawcards has been the establishment of Co-Lab space with a concierge at the foyer level, which provides shared space for building occupiers to host teleconferences, meetings and make use of ‘touch down’ work points outside of their own footprint,” he said.

“The owner has also carried out foyer works and installed an extensive and modern end-of-trip and wellness facility, including a bookable treatment room and fitness studio.

“The North Sydney precinct is undergoing a once in a generation transformation driven by a combination of landmark commercial developments, transport infrastructure, planning initiatives and significant improvement to amenity.

“100 Arthur appeals to tenants as it is situated close to public transport, retail and dining options, and has spectacular eastern views of Sydney Harbour.”

To request a lease analysis please contact the leasing agents via the below contact form.