Shift In Popular Location For Office Buildings In Sydney
The importance of location and amenities has been highlighted again in the latest BIS Shrapnel release, which has highlighted the winners and losers in Sydney for new office construction in the coming decade.
According to a November 7 statement, constrained markets like the central business district, North Sydney and Chatswood are all expected to lose a share of their market in lieu of sites with more accessibility, amenities and affordability.
This includes markets like Parramatta, North Ryde and other metropolitan markets around the city. BIS Shrapnel has highlighted areas like Norwest, Olympic Park and South Sydney has having the “most potential to grow into major suburban office precincts and capture an increasing share of metropolitan office stock”, according to the report.
The next decade has been predicted to increase Sydney’s office stock by 22 per cent – close to 2.6 million square metres – over two construction cycles, which could offer a fantastic investment opportunity for anyone interested in expanding their property portfolio in the future.
By the end of 2023, BIS Shrapnel project that the CBD’s metropolitan office stock will be around 40 per cent, indicating a decline in the city centre that has been occurring for a number of property cycles.
However, Sydney is expected to remain a office market with Lee Walker, senior project manager at BIS Shrapnel, stating that development will move wherever the demand is.
“Its popularity amongst office occupiers and investors will underpin its future development as an office centre,” said Mr Walker.
“However, the lack of sites in some of the smaller suburban centres could make it difficult for them to maintain their appeal as office locations over the longer term.”
Securing property in the outer regions of Sydney for commercial office buildings could be a great investment move to make, with an expected population growth indicating the need for more employment options and facilities in the near future.