Located 8.5km to the north of the Sydney CBD, Chatswood is the transport and economic nerve centre of the Upper North Shore. With total stock of around 284,000 sqm, the Chatswood precinct is a comparatively small yet significant part of the NSW commercial real estate market.
Chatswood’s CBD is defined as the area bounded by the Pacific Highway, Help Street, Archer Street and Albert Avenue. It is home to a number of corporate luminaries including engineering firm Coffey, CSR Limited, Smiths Snackfood and Lenovo.
Renting an office in Chatswood is viewed as a cost effective alternative to the CBD. With its centrality to public transport, vibrant retail and entertainment scene, Chatswood is experiencing strong tenant demand. In fact overall vacancies in Chatswood plummeted to 6.8% during the 2015 financial year driven by an influx of IT&T firms and groups associated with the Metro North West Infrastructure project.
Here are five reasons underlying Chatswood’s popularity as a place to rent an office;
1. Transport - Chatswood is undoubtedly the transportation hub of the Upper North Shore. Chatswood Station is set to play a crucial role in the State Government’s $8.3b Metro North West program – bringing a flood of workers and visitors into the area. The new rail connection between Chatswood and Rouse Hill will link Chatswood with the rapidly growing Hills District. Similarly it will vastly improve Chatswood’s access to the dynamic Macquarie Park precinct – with one train coming in from North Ryde every four minutes during peak times.
2. Retail – Chatswood is famous for its fabulous shopping. Leasing an office in Chatswood puts your business within easy reach of the upmarket Chatswood Chase, Westfield Chatswood and Lemon Grove Shopping Centres. The area is not only the number one retail destination for the North Shore, it is one of the most popular in NSW attracting around 20 million shopping visits per year.
3. Entertainment – Chatswood’s food scene has exploded in recent years and it has become something of a hot spot for Asian cuisine. Similarly there are no shortages of places to grab a drink with the Great Northern Hotel, the Chelsea Hotel, Monkey Bar and 465 The Avenue being just a few of the area’s popular waterholes.
Cinemas in Chatswood Westfield and the Mandarin Centre provide movie lovers with their blockbuster fix whilst those who enjoy live music and theatre can head to The Concourse. Renting an office in Chatswood delivers the kind of buzz and excitement that the next generation of workers are looking for.
4. Highly educated workforce –Sydney’s affluent Upper North Shore, with its expansive properties, leafy streets and elite schools represents an aspirational lifestyle for professional workers. Leasing office space in Chatswood means your business can cherry pick from the sea of highly educated candidates living in the area. Indeed around 44% Willoughby municipality residents hold university qualifications
5. Affordability – The Chatswood commercial real estate market is comprised mostly of high grade stock – 55% is classified as A grade. Nevertheless leasing an office in Chatswood is a value proposition with rentals at a substantive discount to those on offer in the Sydney CBD and North Sydney
According to Colliers net face rents for A-grade properties in Chatswood are currently around $450 per square meter per annum. This is on par with Parramatta and compares very favourably to North Sydney at $600 per square meter per annum and the Sydney CBD fringe at $550 per square meter per annum.
With no new supply in the pipeline and stock being taken off the market for residential conversion, the vacancy situation in Chatswood will remain tight for the foreseeable future. However with the area’s enviable lifestyle and upbeat growth prospects, finding the perfect office space in Chatswood is sure to pay long term dividends for savvy businesses.