Sydney Office Update RW_Leasing Booklet JULY Digital | Page 2

2 | SYDNEY OFFICE UPDATE
CONTENTS
RENTAL GROWTH
TAKES A BREATHER WHAT’S
INSIDE
Looking back over the first six months of 2017, we’ve
negotiated many deals at record high rents with low
incentives in our B Grade office assets. Commercial
buildings that once achieved rates of $750 - $850psm
in Q1/2 of 2016 are now achieving $1,000 - $1,100 psm
in Q1/2 of 2017. However we’re starting to see a pause
in transactions over $1,000psm. In the month of June
2017, we saw tenants starting to look further West or
South of Martin Place in order to find better value space
under $850psm gross. 04
NO.1 BENT STREET
Mike McEnearney’s new restaurant
07
FLEXIBLE
WORKSPACE
This pause has triggered minor rental reductions, by
about 5%, in some of our assets to kick start deals
and ensure stock being marketed for lease has minimal
downtime between tenants.
Tenants displaced from AMP buildings at 50 Bridge
Street and Loftus and Young Street are still scattering
through the market trying to find value space. The
competition and limited supply is keeping inspection
rates high, but actual transactions seem to be taking a
lot longer. When this latest wave of displacement tenants
settles towards the end of 2017, I believe the rapid rate of
rental growth may reach a plateau.
The current shortage of stock on the market means
our leasing team are now doing more deals off market.
Transactions are being finalised from a backlog of tenant
enquiries and our substantial database, without the need
to market space online.
Do you have a vacant property? Get in touch with us -
we offer an obligation free, no cost marketing package,
including professional photography, extensive web site
marketing and insertion in this digital leasing magazine
circulated to over 10,000 Sydney businesses.
All the best,
11
LUXE WORKPLACES
15 C A S E S T U D Y
16 E N D O F T R I P
18 I N D U S T R Y S P E A K
19 F O C U S L I S T I N G S
21 J U N E T R A N S A C T I O N S
KEY ECONOMIC DATA:
Vacancy rates for Sydney CBD: Steady at 6.2%
Anthony Harris
M: 0409 319 060
Disclaimer: Precaution has been taken to establish accuracy of listing details herein
but does not constitutue any representation by the owner or agent
Cash rate: Unchanged at 1.5%
Australian unemployment rate: 5.5%
(May 17, seasonally adjusted)
Ray White Commercial Group Nationally July 2017:
Total Trading Value $440m (LY $211m) 108% increase
on June 2016