Sydney CBD losing $250m a week in lost economy as businesses struggle to survive

CBD office buildings and discretionary businesses like florists have been the hardest hit but a “significant and quick bounce back” when lockdown lifts is expected.

The city centre is bleeding $250 million a week in lost economic activity but business groups remain confident the city will come roaring back to life post-lockdown.

Exclusive City of Sydney economic modelling also reveals the financial impact to the council since March 2020 has exceeded $100m, with many businesses unable to pay rent.

But while Property NSW and the City of Sydney are offering rent relief, other private landlords are booting tenants because there are no rules preventing it for this lockdown.

Business NSW said one in five businesses have enough money to tide them over for the next month, but beyond that is a concern.

“There will undoubtedly be businesses that close down as a result of this lockdown and they’re more likely to be the smaller businesses,” Business Sydney acting executive director Damian Kelly said.

Mr Kelly said cafes inside CBD office buildings and discretionary businesses like florists have been the hardest hit, but remains confident of a “significant and quick bounce back” when lockdown lifts.

George St in The Rocks is quiet on a Friday night. Picture: Toby Zerna

Empty streets and lots of business losses in Sydney during lockdown. Picture: Toby Zerna

Asked if any large corporations had reduced their office footprint in the past month, he said “it happened last time and no doubt will be happening again”.

Sydney Lord Mayor Clover Moore said: “While many are likely to continue working from home in some capacity, there are just some things we can’t easily replicate remotely. “Businesses tell us central office space is crucial for staff wellbeing and activities like training, brainstorming and socialising.”

The hospitality sector is desperate to hold onto workers, many of whom are considering moving to different industries.

Solotel (owns Aria, Opera Bar, Kings Cross Hotel and 25 other venues) is providing staff with grocery packs from their suppliers to maintain morale and ensure they hold onto staff.

Marly Bar Newtown assistant manager Holly Blewitt, 23, said Solotel has been sending her fresh fruits and vegetables, steaks, charcuterie items like antipasto and brie cheese, pasta, eggs, milk, oils, juices, passata and fresh herbs.

Hospitality company Solotel has been offering their staff $100 grocery boxes during lockdown. Holly Blewitt, 23, who works at the Marley Bar in Newtown, with one of the packages. Picture: Jonathan Ng

“Lockdown has been hard and I think hospitality workers get the brunt of the hit every time a city goes into lockdown and then beyond that,” she said.

“I’m keen to see the Marly family and get back to some normalcy and see the industry come back in full force for sake of all hospitality workers.”

Applejack Hospitality founder Hamish Watts, whose company manages Forrester’s Surry Hills, The Butler Potts Point and many others, said there needs to be more protections for businesses being booted from their rental properties.

“The fact that there is no rental code of conduct, as there was last year, is pretty crazy and we would strongly advocate for it,” he said.

“We have good relationships with our landlords and we are working through it as a team, however a support mechanism for the market would be welcome.”

One business owner handed in the keys to his rented premises in The Rocks after a decade of being based in the Sydney CBD.

“Quite simply I could not afford the rent and the landlord engaged in zero negotiation,” the owner, who did not want to be named, said.