North Shore office market: major trends/outlook

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Cushman & Wakefield is today releasing research outlining the major trends in Sydney’s North Shore office leasing and investment market.

The year saw a significant increase in the office leasing market in North Sydney and Macquarie Park buoyed by tighter vacancies in the CBD.

The North Shore markets also attracted strong investment activity with yield spread between Prime and Secondary grade stock compressing as residential developers acquired sites with development upside.

Report highlights:

  • North Sydney Prime grade net rents of $690 per sqm per annum with 24% gross incentives. Macquarie Park Prime grade net rents of $360 per sqm per annum with net incentives of 25%.
  • The PCA in July 2017 reported Macquarie Park vacancy rate increased 140 basis points to 8.5% over the past year, however remains significantly below the 11.2% recorded in mid-2014.

  • In Q2 and Q3 017 there was an increase in assets for sale, contributing to $1.62 billion in sales volume.

Read the full report here.