Sydney CBD Development Tracker Q3 2016 Introduction the Balance Shifts
Office Sydney CBD Leasing Development Tracker
Here to guide you Sydney CBD Development Tracker Q3 2016 Introduction The balance shifts...
Australian economic growth is shifting from mining These dynamics will see the balance of power shifting and construction to the more employment intensive towards landlords when it comes to lease negotiations over service sector, which has been the largest contributor to the next few years. employment growth last year. The NSW Government is seeking vacant possession of all As at February 2016, service employment growth reached Sydney Metro sites by Q1 2017. Similarly, Wanda, the owner 3.9% year on year on a rolling-annual basis, surpassing of the Goldfields House residential development site, has the ten-year moving average of 2.7% pa. This strong commenced serving notices to achieve vacant possession employment growth in the service sector has been driving by Q1 2017. improved tenant demand in the service-oriented capital This will add significantly to the already buoyant office cites of Australia, with Sydney being at the forefront of this demand in the CBD through the balance of 2016, and transition. coupled with negative net supply in coming years, will create In the twelve months to January 2016, the Sydney CBD conditions conducive to significant effective rental growth. office market recorded a net absorption of 157,150 sqm, the strongest level since 2007. Tenant activity has been underpinned by the finance and banking sectors, as well as a cohort of IT companies and co-working start-ups taking up on premium space in the CBD. Whilst demand continues to build momentum, the net supply over the next four years is expected to decline substantially due to the significant withdrawal of stock for residential conversion and the construction of the new John Preece Sydney Metro stations. Our estimates indicate that up Head of Office Agency, NSW & Australia to 362,000 sqm of office space will be withdrawn from Knight Frank Australia Pty Ltd the market permanently over the next four years, with the majority of these withdrawals occurring in 2017 and 2018. July 2016 This will result in significant tenant displacement and put further pressure on an already tight market.
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4 Barangaroo T2 - 88,200 sqm (St George / BT / Westpac / Gilbert 388 George Street - 36,151 sqm 1 + Tobin) 18 Investa / Brookfield - Q4 2018 - 0% committed LLITST - Q3 2015 - 89% committed
20 Martin Place - 15,920 sqm (Apple / Regus / Hogan Lovett / Darling Square, The Haymarket - 20,000 sqm (CBA) 2 McGrathNicol) 19 Lendlease - 2018 - 100% committed Pembroke Real Estate - Q3 2015 - 75% committed
3 80 Pitt Street - 11,400 sqm 20 259 George Street (ex-Suncorp 20,352 sqm) - 44,954 sqm Yorkban - Q1 2017 - 0% committed Memocorp - 2018 - 55% committed
4 Barangaroo T3 - 79,221 sqm (KPMG / Lendlease) 21 60 Martin Place - 40,000 sqm LLITST - Q2 2017 - 76% committed Investa / Gwynvill Group - H2 2019 - 0% committed
5 333 George Street - 12,500 sqm (Clyde & Co) 22 The Ribbon, 1 Wheat Road - 38,000 sqm Charter Hall - Q4 2016 - 0% committed Grocon / SHFA - 2019+ - 0% committed
6 200 George Street - 38,676 sqm (Ernst & Young / Mirvac) 23 Barangaroo C2 & C8 - 11,000 sqm - LLOneITST - 2019+ - Mirvac / AMP - Q3 2016 - 100% committed 0% committed
7 Barangaroo T1 - 101,729 sqm (PWC / HSBC / Marsh Mercer) 24 33 Bligh Street - 26,000 sqm LLOneITST - Q4 2016 - 48% committed Energy Australia / Investa - 2020+ - 0% committed
8 Grosvenor Place, 225 George Street (ex-Ashurst) - 85,515 sqm 25 275 George Street - 7,000 sqm DEXUS / CIC / CSC - H1 2016 - 83% committed LaSalle Investment Management - 2019+
One Wharf Lane, 161 Sussex Street - 6,500 sqm 26 CQ Tower, 182 George & 33 Pit Streets - 55,000 sqm 9 M&L Hospitality - Q3 2016 - 0% committed Lendlease - 2020+
10 Shelley Street (ex-KPMG) 27,778 sqm (Suncorp) 27 55 Pitt Street - 30,000 sqm + 10 Brookfield - 2017 - 100% committed Mirvac - 2020+
11 30 The Bond, 30 Hickson Road (ex Lendlease) - 19,700 sqm 28 Wynyard Place - 68,200 sqm DEXUS - H2 2016 - 18% committed Brookfield - 2020+ - DA approved
12 255 Pitt Street (ex-Challenger, Apple) - 15,427 sqm 29 Quay Quarter Sydney - 90,000 sqm ISPT - H1 2017 - 50% committed AMP - 2020+ - Stage 1 DA approved
13 275 Kent Street - 77,125 sqm 30 56 Pitt Street - 21,000 sqm+ Mirvac / Blackstone - H2 2017 - 79% committed DEXUS - 2020+
14 680 George Street (ex-Ernst & Young) - 62,250 sqm 31 210 & 220 George Street - 17,000 sqm Brookfield / Arcadia - 2017 - 58% committed Poly Real Estate - 2021+
15 55 Market Street - 15,776 sqm 32 255 George Street - 39,981 sqm CIC - H1 2016 - 50% committed (ex-NAB 22,500 sqm) - AMP - H2 2020
16 201 Sussex Street, DPIII (ex-Marsh & McLennan) - 29,820 sqm 33 Darling Park Tower 4 - 70,000 sqm GPT (GWOF) / AMP (ACPF) / Brookfield - 2017 - 57% committed GPT / Brookfield / AMP - TBC
17 151 Clarence Street - 19,910 sqm (Arup) Investa - Q3 2018 - 29% committed
Under construction / completed
DA Approved / Confirmed / Site Works
Mooted / Early Feasibility
5 New Build and Major Refurbishments Under Construction / Recently Completed pg 7–10
DA approved / Confirmed / Site works pg 11–15
Mooted / Early Feasibility pg 16-18 new build and major refurbishments under construction / recently completed
Address Barangaroo, Tower 2, Sydney
Developer LLITST 1 Barangaroo T2 Owner LLITST
Total Size 88,200 sqm
Available 19,700 sqm (Levels 30, 31 & 37-41)
Floor Plate Size 2,161 - 2,411 sqm
Delivery Date Q3 2015
Tenants Committed St George / BT / Westpac / Gilbert+Tobin
Status 89% committed
Address 20 Martin Place, Sydney
Developer Pembroke Real Estate 2 20 Martin Place Owner Pembroke Real Estate
Total Size 15,920 sqm
Available 4,050 sqm
Floor Plate Size 800 sqm
Delivery Date Q3 2015
Tenants Committed Apple / Regus / Hogan Lovett / McGrathNicol
Status 75% committed
Address 80 Pitt Street, Sydney
3 Developer N/A 80 Pitt Street Owner Yorkban
Total Size 11,400 sqm
Available 11,400 sqm
Floor Plate Size 864 - 880 sqm
Delivery Date Q1 2017
Tenants Committed Nil
Status Refurbishment of existing building 7 Address Barangaroo, Tower 3, Sydney
Developer LLITST
7 Barangaroo T3 Owner APPF / CPPIB / First State / Telstra Super / APG
Total Size 79,221 sqm
Available 17,098 sqm
Floor Plate Size 2,126 - 2,423 sqm
Delivery Date Q2 2017
Tenants Committed KPMG / Lend Lease
Status 76% committed
Address 333 George Street, Sydney
Developer Charter Hall 8 333 George Street Owner Charter Hall
Total Size 12,500 sqm
Available 5,320 sqm
Floor Plate Size 970 sqm
Delivery Date Q4 2016
Tenants Committed Clyde & Co.
Status 57% Under offer
Address 200 George Street, Sydney
Developer Mirvac 9 200 George Street Owner Mirvac / AMP
Total Size 38,676 sqm
Available 0 sqm
Floor Plate Size 1,300 sqm
Delivery Date Q3 2016
Tenants Committed Ernst & Young / Mirvac
Status 100% committed 8 Address Barangaroo, Tower 1, Sydney
Developer LLOneITST 10 Barangaroo T1 Owner LLOneITST
Total Size 101,729 sqm
Available 49,301 sqm
Floor Plate Size 2,295 sqm
Delivery Date Q4 2016
Tenants Committed PWC / HSBC / Marsh Mercer
Status 48% committed
Address 225 George Street, Sydney
Developer N/A 11 Grosvenor Place Owner DEXUS / CIC / CSC
Total Size 85,515 sqm
Available 12,417 sqm
Floor Plate Size 1,996 sqm
Delivery Date H1 2016
Tenants Committed Multi-tenanted
Status 83% committed
Address One Wharf Lane, 161 Sussex Street, Sydney
Developer M&L Hospitality 12 One Wharf Lane Owner M&L Hospitality
Total Size 6,500 sqm
Available 6,500 sqm
Floor Plate Size 720 sqm
Delivery Date Q3 2016
Tenants Committed Nil
Status 0% committed 9 Da approved / confirmed / site works
Address 10 Shelley Street, Sydney
Developer N/A
13 10 Shelley Street Owner Brookfield
Total Size 27,778 sqm
Available 0 sqm
Floor Plate Size 1,282 - 1,970 sqm
Delivery Date 2017
Tenants Committed Suncorp
Status 100% committed
Address 30 Hickson Road, Millers Point
Developer N/A 14 30 The Bond Owner DEXUS
Total Size 19,700 sqm
Available 16,228 sqm
Floor Plate Size 2,250 sqm
Delivery Date H2 2016
Tenants Committed
Status 18% committed
Address 255 Pitt Street, Sydney
Developer N/A 15 255 Pitt Street Owner ISPT
Total Size 15,427 sqm
Available 7,692 sqm
Floor Plate Size 1,930 sqm
Delivery Date H1 2017
Tenants Committed
Status 50% committed 10 Address 275 Kent Street, Sydney
Developer N/A 16 275 Kent Street Owner Mirvac / Blackstone
Total Size 77,125 sqm
Available 16,130 sqm
Floor Plate Size 1,492 – 1,845 sqm
Delivery Date H2 2017
Tenants Committed Westpac
Status 79% committed
Address 680 George Street, Sydney
Developer N/A 17 680 George Street Owner Brookfield / Arcadia
Total Size 62,250 sqm
Available 25,925 sqm
Floor Plate Size 1,800 sqm
Delivery Date 2017
Tenants Committed Nil
Status 58% committed
Address 55 Market Street, Sydney
Developer N/A 18 55 Market Street Owner CIC
Total Size 15,776 sqm
Available 7,836 sqm
Floor Plate Size 1,026 - 1,068 sqm
Delivery Date H1 2016
Tenants Committed Westpac
Status 50% committed 11 Address Darling Park Tower 3, 201 Sussex Street, Sydney
Developer N/A 19 201 Sussex Street, Tower 3 Owner GPT (GWOF) / AMP (ACPF) / Brookfield
Total Size 29,820 sqm
Available 12,815 sqm
Floor Plate Size 1,500 sqm
Delivery Date 2017
Tenants Committed Rabobank / Salesforce
Status 57% committed
Address 151 Clarence Street, Sydney
Developer N/A 20 151 Clarence Street Owner Investa
Total Size 19,910 sqm
Available 14,119 sqm
Floor Plate Size 1,250 sqm
Delivery Date Q3 2018
Tenants Committed Arup
Status 29% committed
Address 388 George Street, Sydney
Developer N/A 21 388 George Street Owner Investa / Brookfield
Total Size 36,151 sqm
Available 36,151 sqm
Floor Plate Size 1,300 sqm
Delivery Date Q4 2018
Tenants Committed Nil
Status 0% committed 12 Address Darling Square
Developer Lendlease
22 Darling Square, The Haymarket Owner Lendlease
Total Size 20,000 sqm
Available 0 sqm
Floor Plate Size TBC
Delivery Date 2018
Tenants Committed Commonwealth Bank of Australia
Status 100% committed to CBA.
Address 259 George Street, Sydney
Developer N/A 23 259 George Street Owner Memocorp Australia
Total Size 44,954 sqm
Available 20,352 sqm
Floor Plate Size 970 sqm
Delivery Date 2018
Tenants Committed Multi-tenanted
Status 55% committed
Address 60 Martin Place, Sydney
Developer Investa 24 60 Martin Place Owner Investa / Gwynvill Group
Total Size 40,000 sqm
Available 40,000 sqm
Floor Plate Size 1,250 - 1,570 sqm
Delivery Date H2 2019
Tenants Committed Nil
Status DA approved, works due to commence mid-2016. 13 Address 1 Wheat Road, Darling Harbour
Developer Grocon
25 The Ribbon Owner Grocon / SHFA
Total Size 38,000 sqm
Available 38,000 sqm
Floor Plate Size Up to 3,500 sqm
Delivery Date 2019+
Tenants Committed Nil
Pending pre-committment. Indications are that Status the site may be re-purposed for hotel use.
Address Barangaroo C2 & C8
Developer LLITST 26 Barangaroo C2 & C8 Owner LLITST
Total Size 11,000 sqm
Available 11,000 sqm
Floor Plate Size TBC
Delivery Date 2019+
Tenants Committed Nil
Status 0% committed
Address 33 Bligh Street, Sydney
Developer Energy Australia / Investa 27 33 Bligh Street Owner Energy Australia / Investa
Total Size 26,000 sqm
Available 26,000 sqm
Floor Plate Size 1,254 - 1,416 sqm
Delivery Date 2020+
Tenants Committed Nil
Status Stage 2A DA approved 14 mooted / early feasibility
Address 275 George Street, Sydney
Developer LaSalle Investment Management 28 275 George Street Owner LaSalle Investment Management
Total Size 7,000 sqm
Available TBC
Floor Plate Size TBC
Delivery Date 2019+
Tenants Committed Nil
Status Early feasibility
Address CQ Tower, 182 George & 33 Pitt Streets, Sydney
Developer Lendlease 29 CQ Tower Owner Lendlease
Total Size 55,000 sqm
Available 55,000 sqm
Floor Plate Size TBC
Delivery Date 2020+
Tenants Committed Nil
Status Early feasibility
Address 55 Pitt Street, Sydney
Developer Mirvac 30 55 Pitt Street Owner Mirvac
Total Size 30,000 sqm
Available 30,000 sqm
Floor Plate Size TBC
Delivery Date 2020+
Tenants Committed Nil
Status Early feasibility 15 Address Wynyard Place, Sydney
Developer Brookfield 31 Wynyard Place Owner Brookfield
Total Size 68,200 sqm
Available 68,200 sqm
Floor Plate Size 2,000 - 2,500 sqm
Delivery Date 2020+
Tenants Committed Nil
Status DA approved
Address Quay Quarter Tower, 50 Bridge Street, Sydney
Developer AMP 32 Quay Quarter Tower Owner AMP
Total Size 90,000 sqm
Available 90,000 sqm
Floor Plate Size TBC
Delivery Date 2020+
Tenants Committed Nil
Status Stage 1 DA approved
Address 56 Pitt Street, Sydney
Developer DEXUS 33 56 Pitt Street Owner DEXUS
Total Size 21,000 sqm+
Available TBC
Floor Plate Size TBC
Delivery Date 2020+
Tenants Committed Nil
Status Early feasibility 16 Address 210 & 220 George Street, Sydney
Developer Poly Real Estate 31 210 & 220 George Street Owner Poly Real Estate
Total Size 17,000 sqm
Available 17,000 sqm
Floor Plate Size 1,150 sqm
Delivery Date 2021+
Tenants Committed Nil
Status Early feasibility
Address 255 George Street, Sydney
Developer N/A 32 255 George Street Owner AMP Capital
Total Size 39,981 sqm
Available 22,500 sqm
Floor Plate Size 1,217 - 1,505 sqm
Delivery Date H2 2020
Tenants Committed Nil
Status Existing building
Address Darling Park, Tower 4, Sydney
Developer GPT / Brookfield / AMP 33 Darling Park Owner GPT / Brookfield / AMP
Total Size 70,000 sqm
Available 70,000 sqm
Floor Plate Size TBC
Delivery Date TBC
Tenants Committed None
Status Early feasibility 17 Disclaimer
This summary has been prepared by Knight Frank Australia as an indicative guide to developments and major supply in Sydney CBD only. Knight Frank does not warrant or represent that the information presented herein is complete or accurate, as details have been sourced or inferred from publically available information only, and not an audited source. Any reference to future market conditions should be considered an estimate only of future potential only. John Preece Nicola Cooper Head of Office Agency, NSW & Australia Senior Director, Head of Division, ACT N T: +61 2 9036 6705 A T: +61 2 6221 7861 [email protected] [email protected]
Hamish Sutherland David Howson Senior Director, Head of Division, VIC Senior Director, Head of Division, QLD V T: +61 3 9604 4734 Q T: +61 7 3246 8833 [email protected] [email protected]
Greg McAlpine Martin Potter Senior Director, Head of Division, WA Senior Director, Head of Division, SA W T: +61 8 9225 2426 S T: +61 8 8233 5208 [email protected] [email protected]
Joanna Gordon Andrea Brown Head of Global Corporate Services, Australia Head of PMBC, Australia N T: +61 2 9036 6807 N T: +61 2 9028 1105 [email protected] [email protected] RECENT MARKET-LEADING PUBLICATIONS The Weal The global perspective on prime property and wealth T h Repo RT RT DON’T GET The GLOBAL CITIES LEFT BEHIND 2015 WealTh ACTIVITY BASED WORKING, CO-WORKING, AND BEYOND... JULY 2015 www.knightfrank.com/wealthreport RepoRT 2015 SKYSCRAPERS 2015 REPORT
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