Sydney, 21 April 2015 -Strong demand for office space in Pyrmont has underpinned a flurry of lease activity in the area, with CBRE reporting several high-profile lease agreements transacting in Q4 2014 and Q1 2015.
CBRE Office Services Associate Director, Brendan Shipp said there had been a significant upturn in enquiries from businesses vying to gain a presence in the sought after Pyrmont market.
Demonstrating this trend, Echo Entertainment and NSN Solutions have recently subleased 3,000sqm and 2,000sqm of space respectively at 60 Union Street from AMEX.
CBRE negotiated both leases at $595 per sqm gross, for 3.5 to 4 year durations.
The building, which was originally wholly occupied by AMEX, boasts city and harbour views, basement parking and a ground floor shopping arcade.
Mr Shipp said; “there is currently high demand for A-grade space in the Pyrmont area, which is being driven predominantly by media and entertainment companies.”
Over the past decade, Pyrmont has evolved into Sydney’s media and entertainment heart, with Google, Fairfax Media, Channels 7 and 10, Nova 96.9, 2GB, APN Outdoor and the ABC all calling the area home.
“Tenants are drawn to Pyrmont due to its close proximity to the CBD, the surrounding amenities including popular cafes and restaurants, the top quality accommodations and the more cost effective rates then the CBD.”
“Over the coming months we expect to see further agreements negotiated in Pyrmont with clients increasingly expressing interest in the area,” Mr Shipp said.
CBRE research has tracked a close to 5% drop in vacancy rates and steady rental growth in the Pyrmont area between December 2013 and December 2014, which is forecast to continue throughout 2015.
Other recent transactions in Pyrmont include Thomson Reuters leasing circa 6,500sqm at 19 Harris Street, Parkview Constructions Pty Ltd leasing circa 1,600sqm at 235 Pyrmont Street, EG Funds Management purchasing the former Festival Records Headquarters at 63-79 Miller St for $20 million from Aveo Group Limited, Wharf 10 at 50-52 Pirrama Rd being sold for $42 million to Mark Henderson and 100 Harris Street, which was formerly the offices of real estate magnates Isaac and Susan Wakil, being sold for over $90 million.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 52,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 370 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.