Office space opens in ‘orderly’ style

Sydney’s office market is experiencing an orderly supply cycle, according to Investa Property Group.

Investa's Mark Tait and Michael Cook at 60 Martin Place in Sydney.

Sydney’s office market is experiencing an orderly supply cycle, according to Investa Property Group, ­despite a rising number of skyscrapers set to be delivered by the middle of the next decade.

Speaking as the landmark $1 billion 60 Martin Place tower it is undertaking with the private Gwynvill Group was topped out, Investa group executive Michael Cook said the present cycle was “very orderly” as few towers were being delivered at the same time.

With Investa opening city towers both this year and in 2018, he said they were coming ahead of rivals such as Brookfield’s Wynyard Place, AMP Capital’s Quay Quarter Tower and Lendlease’s Circular Quay Tower.

Mr Cook said Martin Place was regaining its prominence and would benefit from Macquarie Group’s new over-station towers due in 2024.

“Sydney is still the strongest market in Australia,” he said, citing its status as the gateway city.

Investa Commercial Property Fund and Gwynvill said yesterday they had leased a further 9000sq m at 60 Martin Place to three global companies.

As the only premium grade building that will be completed and delivered this year in Sydney’s CBD, the race to secure the remaining space in the building is gathering pace.

The top provider of flexible workspaces, International Workplace Group, has confirmed it would take 4500sq m in the building’s podium across levels one to three, where it will operate a large co-working space under its Spaces brand.

One of Japan’s three megabanks, Mizuho Bank, will take 1900sq m across levels 29 and 30, relocating from 60 Margaret Street, and a third tenant that ­operates in the global financial sector, but who cannot yet be identified, will take 2600sq m.

The new deals came as ICPF and Gwynvill celebrated the topping out at level 33. The new tenants will join Norton Rose Fullbright at the building, occupying 9500sq m, and Banco Chambers with 2700sq m.

“The market has been receptive to the product,” Mr Cook said of the speculatively built tower. But he added that the premium tenancy market was still “very competitive”.