Home杭州楼凤 › CIMIC North Sydney site gets new tenant

CIMIC North Sydney site gets new tenant

In one of the milestone leases for the year, Jacobs, a technical, professional and construction services providor, has signed up for space at the $413 million skyscraper at 177 Pacific Highway, North Sydney.
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The deal comes as North Sydney braces for a new phase of rental growth, with the planned construction of the Sydney metro train stations leading to the loss of a significant amount of office space as the NSW government acquires properties for demolition, followed by the construction of the new transport infrastructure.

Under the lease, Jacobs will take 6872 square metres in the tower at 177 Pacific Highway, which is being developed by CIMIC Group through Leighton Properties on behalf of Suntec Real Estate Investment Trust and will be the new head quarters for CIMIC.

The adviser on the deal, CBRE head of office services for NSW Peter Flint, said Jacobs’ significant commitment demonstrates increased activity from tenants wanting to relocate to North Sydney, with this being one of the largest commitments in the area in many years.

He said supply has tightened and  the area’s vacancy rate has also declined significantly, which has led to an ongoing compression in effective rents and investment yields.

According to the Property Council of ‘s Office Market Report, in the six months to July 2015, North Sydney’s vacancy rate fell from 8.9 per cent to 8 per cent.

“Having been under pressure for a while, we are expecting the North Sydney market to have a rebirth, thanks to the Metro rail link, the new residential tower developments and the opening of 177 Pacific Highway,” Mr Flint said.

“Next year there will be an additional 3500 people in the area, which has prompted Investa and Cromwell to open new supermarkets in their buildings, and we expect more amenities over time.”

Other new leases include the top floor of 100 Pacific Highway by the Beam Suntory group, which is said to have paid about $750 per square metre a year in rent.

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