A pipeline of new office, retail and hotel developments have led North Sydney to experience a fundamental shift which could propel Sydney’s second largest office market into a new phase of growth and revitalisation.
The backdrop to this was tightening office vacancy rates which are expected to trigger a surge in office rents along with increasing demand for luxury apartments in North Sydney and surrounding harbour side suburbs.
New offering were expected to enter the market, like 8 West Street which is positioned on the fringe of the North Sydney CBD.
8 West Street is a landmark, free-standing building over 11 levels and approximately 6,023.1 square metres of net lettable area, with 77 car spaces and net income of circa $3.2 million per annum, with medium term residential potential. The property commands a land area of approximately 1,815 square metres.
The concept drawings prepared for this Lower North Shore elevated site provide for 70 high end residential apartments and four retail suites within a 13 level building benefitting from two existing basement levels providing 71 car parking spaces.
8 West Street, courtesy Mark Merton.
Perched upon the highest elevation within North Sydney, these apartments will capture panoramic district and harbour views. The conversion will offer an ideal mix of one, two and three bedroom penthouse apartments (STCA) providing an indicative GFA of 6,900 square metres.
Savills Director of Capital Transactions Graeme Russell at Savills said from an office supply perspective, North Sydney is the most geographically and demographically restricted office market in the country.
“Local, interstate and international developers will be drawn by the rare opportunity to secure a landmark property situated on the fringe of North Sydney CBD that is well suited for future residential conversion," he said.
CBRE Head of Private Clients & Metropolitan Investment Properties Nicholas Heaton said North Sydney is primed for strong rental growth over coming years from an office owners perspective, which will underpin further growth in values, but it also sits within one of Sydney’s wealthiest demographics meaning demand for luxury apartments is expected to continue and indeed grow.
