Chatswood Chase: Third level redevelopment to be delayed amid downturn in office demand
A key component of a long-planned upgrade of one of northern Sydney’s busiest shopping centres is set to be delayed in response to a downturn in demand for commercial office space.
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A key component of a long-planned upgrade of one of northern Sydney’s busiest shopping centres is set to be delayed in response to a downturn in demand for commercial office space.
Vicinity Centres, the operator of Chatswood Chase, has confirmed plans to defer a multimillion transformation of the third level of the retail centre that was intended to “contribute to the growth of Chatswood as a key area for business activity”.
The multimillion dollar development included building new offices, co-working spaces and flexible working areas.
Vicinity Centres says the delay would allow “time and flexibility” to deliver the development “when market conditions are more suitable to this type of land use”.
The deferral comes amid a period of volatility in the demand for office space in Sydney – partly driven by factors including flexible working arrangements allowing more Sydneysiders to work from home.
Latest figures by the Property Council of Australia show office vacancy rates in Sydney remained stable at 11.3 per cent in the last six month reporting period.
The proposed third level development at Chatswood Chase forms part of a broader $193 million redevelopment of Chatswood Chase which also includes new and refurbished retail outlets.
All remaining stages of development are expected to be completed by July next year, a Vicinity Centre spokeswoman said.
According to plans, the development of the new office space could commence “approximately” three years later in 2028.
A new multi deck car park, proposed for the third level of the centre, has also been delayed as part of the deferral.
Vicinity Centres is expecting the overall expansion of the centre to generate 1018 direct jobs as well as 207 construction jobs.
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