Commercial Monitor June 2016
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City of Sydney Town Hall House Commercial Monitor 456 Kent Street Sydney NSW 2000 June 2016 0 / City of Sydney Commercial Monitor June 2016 Commercial Monitor The City of Sydney Commercial Development Monitor provides up to date information on commercial development in the City of Sydney Local Government Area (LGA). It complements the City Residential Monitor which covers the residential market in ten village areas of the City. The village areas are: • CBD and Harbour; • Chinatown and CBD South; • Crown and Baptist Streets; • Glebe Point Road; • Green Square and City South; • Harris Street; • King Street; • Macleay Street and Woolloomooloo; • Oxford Street; and • Redfern Street. The commercial monitor reports on two separate geographies: (1) the combined village areas of CBD & Harbour and Chinatown & CBD South (2) the remaining eight village areas combined. Information on commercial projects is mapped, tabulated, graphed and described based on the status of developments at the end of the reporting period. Developments are grouped by the following categories: • Completed – commercial developments that have completed construction within five years of the report date. • Commenced – commercial developments that are currently under construction but have yet to be completed at the report date. • Approved – commercial developments that have been approved by relevant authorities but have yet to commence at the report date. • Lodged – commercial developments that have been submitted for approval but have not yet been approved by the relevant authority at the report date. Trends in approvals, completions, office vacancies and absorption of office space are also provided. 1 / City of Sydney Commercial Monitor June 2016 Commercial Floor Space Trends Approximately 238,992m² of commercial floor space was completed across the LGA over the past twelve months. Nearly 80% of this new floor space can be attributed to the completion of new commercial projects in two village areas (CBD & Harbour and Chinatown & CBD South). These developments included a new office building at 200 George Street, additions to the ‘Money Box’ Commonwealth Bank Building in Martin Place and the completion of the commercial building C4 at Barangaroo South (International Tower 2). These three projects alone added 179,076m² of commercial floor space to the market. It is expected that the 2016/17 financial year will see the completion of several major commercial developments in CBD & Harbour and Chinatown & CBD South, including four more buildings at Barangaroo South (International Tower 1 & 3, International House and Building R7). In addition the proposed re-development of the Sydney Convention, Exhibition and Entertainment Centre and the adjacent Darling Square will deliver significant commercial floor space in 2016/17. 500 CBD & Harbour and Chinatown & CBD 450 South Remaining Village Areas 400 350 300 250 '000m² 200 150 100 50 0 11/12 12/13 13/14 14/15 15/16 16/17 (f) 17/18 (f) 18/19 (f) 19/20 (f) 20/21 (f) Source: City of Sydney For the remaining eight village areas, the total completed commercial floor space over the past twelve months was 51,146m². More than half of this was attributed to the completion of the new Business School at the University of Sydney. The next twelve months are expected to yield more than 84,596m² of commercial floor space as developments such as the Equinix (data centre) in Alexandria, Moore Theological College and numerous retail and office developments are completed. Looking forward to the next 2-5 years across the LGA there are expected to be a number of large redevelopments taking place adding significant commercial floor space to the market. These include 1 Carrington Street above Wynyard Station, Cockle Bay Wharf and Harbourside Shopping Centre, and further UTS and Sydney University campus upgrades. 2 / City of Sydney Commercial Monitor June 2016 The net absorption rate from the preceding 12 months (July 2015 to July 2016) recorded a positive figure, of 147,245m² (Property Council of Australia). Sydney continues to have strong demand, particularly in the Premium Grade segment. Source: Property Council of Australia, Office Market Reports The office vacancy rate for the Sydney CBD decreased over the same 12 month period, from 6.3% in July 2015 to 5.6% in July 2016 (Property Council of Australia). The five-year rolling average vacancy rate decreased to 7.69%, as did the ten-year rolling average with a figure of 7.29%. Source: Property Council of Australia, Office Market Reports 3 / City of Sydney Commercial Monitor June 2016 Commercial Monitor Reporting Criteria Commercial projects include any office, retail, entertainment/leisure and other employment generating projects. These must meet one of the following criteria to be included in the Commercial Development Monitor. • New development with commercial floor space greater than 1,000 square metres; • Refurbishment costing over $5million; • Addition costing over $1million and additional floor space greater than 1,000 square metres; • Conversions costing over $1million and converted floor space greater than 1,000 square metres. The following abbreviations are used in the tables. N New Building A Additions (Floor area relates to additional floor area) R Refurbishment/Reconstruction (No floor area given unless project is a full reconstruction adding net floor space) C Conversion Other things to note: • The floor area stated is based on floor area calculations of the approved DA. It does not represent the net lettable floor area of the building. Floor area associated with residential use is not included. • For details of residential projects, refer to the City Residential Development Monitor. 4 / City of Sydney Commercial Monitor June 2016 COMPLETED - CBD & Harbour and Chinatown & CBD South 5 / City of Sydney Commercial Monitor June 2016 COMPLETED – CBD & Harbour and Chinatown & CBD South COMPLETED (July 2011 to June 2016) Floor Map Building Name/ DA DA Completion Major Address Type Area Ref. Project Name Lodged Approved Date Use (m2) 200 George Street, 200 George 1 13/06/2012 6/12/2012 Jun-16 Office N 43,270 Sydney Street 15 Castlereagh Street, 2 17/05/2013 3/09/2013 Jun-16 Office R Sydney 3 275 Pitt Street, Sydney Galleries Victoria 26/09/2013 10/02/2014 Jun-16 Retail R The Calyx - 4 Mrs Macquaries 4 Sydney Tropical 21/11/2014 7/04/2015 Jun-16 Community N Chair Road, Sydney Centre 580 George Street, 5 HSBC Centre 1/11/2012 10/10/2013 Jun-16 Office R Sydney "Money Box' 108-120 Pitt Street, 6 Commonwealth 30/08/2009 14/10/2010 May-16 Office A 38,993 Sydney Bank Building 19-29 Martin Place, 7 MLC Centre 28/01/2014 13/06/2014 Dec-15 Retail, Office R Sydney Australian 2 Murray Street, National Maritime Community, 8 17/12/2013 12/05/2014 Nov-15 R Sydney Museum - Retail Warships Pavilion 396 George Street, 9 31/01/2014 14/04/2014 Oct-15 Office R Sydney 135 King Street, 10 Glasshouse 12/09/2014 12/01/2015 Oct-15 Office, Retail R Sydney 478-480 George 11 24/11/2011 14/05/2012 Oct-15 Office N 6,349 Street, Sydney 200 Barangaroo C4 Barangaroo 12 10/11/2010 3/03/2011 Jul-15 Office, Retail N 96,813 Avenue, Barangaroo South (IT2) 306 Kent Street, Red Rock House 13 25/01/2010 16/08/2010 Jul-15 Office, Retail R Sydney AKA 40 King St 18-30A Martin Place, 14 29/06/2012 6/12/2012 Jul-15 Retail R Sydney 36-64 George Street, Arts Exchange 15 19/08/2013 18/10/2013 Jul-15 Office R The Rocks Building Downing Centre 86-90 Goulburn Street, 16 and John 22/12/2011 25/07/2012 Jul-15 Community R Sydney Maddison Tower 1 Darling Drive, 17 Cockle Bay 26/09/2013 6/12/2013 Jul-15 Entertainment N 2,421 Sydney 19-29 Martin Place, 18 MLC Centre 18/11/2013 12/03/2013 May-15 Office R Sydney 34-36 Hunter Street, 19 14/04/2010 2/06/2010 Jan-15 Office R Sydney 153-159 Clarence 20 Red Cross House 22/12/2011 25/06/2012 Nov-14 Office A/R 3,110 Street, Sydney 48-50 Martin Place, 21 CBA Building 18/05/2011 18/08/2011 Nov-14 Office R/A 1,490 Sydney 456 Kent Street, 22 Town Hall House 6/08/2012 19/09/2012 Sep-14 Office R Sydney 61-79 Quay Street, 23 The Quay 23/06/2010 24/01/2011 Sep-14 Retail N 8,273 Haymarket 31 Ultimo Road, 24 3/11/2011 29/03/2012 Jul-14 Office N 17,826 Haymarket 6 / City of Sydney Commercial Monitor June 2016 COMPLETED (cont.) Floor Map Building Name/ DA DA Completion Major Address Type Area Ref. Project Name Lodged Approved Date Use (m2) 201 Castlereagh Scientology 25 17/11/2008 1/06/2009 Mar-14 Community A 3,804 Street, Sydney House 169-183 Liverpool 26 13/12/2012 16/08/2013 Dec-13 Office R Street, Sydney Zara Tower 61-65 Wentworth 27 Serviced 28/06/2012 9/10/2012 Jul-13 Office A 2,043 Avenue, Sydney Apartments 8-12 Chifley Square, 28 8 Chifley 13/03/2008 31/03/2009 Jun-13 Office N 21,912 Sydney 201-239 Sussex 29 15/03/2012 28/06/2012 Jun-13 Retail R Street, Sydney 1-15 O'Connell Street, 30 22/11/2011 14/02/2012 May-13 Office R Sydney 1-15 O'Connell Street, 31 26/09/2012 6/11/2012 May-13 Office R Sydney 8-18 Bent Street, 32 21/03/2012 13/04/2012 Dec-12 Office R Sydney Madame 33 1 Wheat Road, Sydney Tussauds Wax 1/06/2011 4/08/2011 Jul-12 Entertainment R Museum 58-68 King Street, 34 Charles Plaza 5/08/2008 4/05/2009 Jun-12 Office R/A 712 Sydney 160-166 Sussex 35 19/09/2011 1/11/2011 Jun-12 Office R Street, Sydney 140 George Street, Museum of 36 25/08/2008 26/06/2009 Mar-12 Community R/A 5,926 The Rocks Contemporary Art 1-17 Kent Street, 37 17/12/2010 29/03/2011 Feb-12 Office R Millers Point 9-13 Castlereagh 38 Trans City House 2/08/2010 1/11/2010 Jan-12 Office R Street, Sydney 232-236 Pitt Street, 39 Boyd Tower