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      Commercial Real Estate & Offices for Rent – Chatswood

      Commercial Real Estate & Office Rental Market – Chatswood

      Located 8.5km to the north of the Sydney CBD, Chatswood is the transport and economic nerve centre of the Upper North Shore. Chatswood currently ranks as Sydney’s third largest CBD. As home to NSW’s second biggest retail precinct – including Chatswood Chase, Westfield and Lemon Grove, Chatswood is also a leading shopping and entertainment destination. [1] 

      Chatswood’s commercial heart sits between the Pacific Highway and the North Shore rail line. A construction boom during the 1980s and 1990s saw the area transition to a high rise precinct.[2]Residential development took off in the 2000s and nowadays residential and office towers sit side by side.

      Chatswood houses major rail and bus interchanges linking it to the Sydney CBD, the Upper and Lower North Shore suburbs and Sydney’s North West. The area is poised to benefit from growth in the burgeoning Hills district with the construction of the Sydney Metro Northwest rail link. The $8.3b project will connect Chatswood to Rouse Hill by 2019.[3]

      Recently the State Government proposed a major extension to its Metro Rail Link project connecting Chatswood with Bankstown. The plan entails a second harbour rail crossing and a number of new stations in the CBD and inner city suburbs[4]. Such improved access to Greater Sydney should only improve Chatswood’s appeal as a place to do business.

      Renting an office in Chatswood gives your business access to world class amenities, excellent transport and parking, top tier retail and a thriving café and restaurant scene. It is little wonder that companies from across a broad range of industries – from engineering and construction to IT & T through to insurance and professional services, are based there[5]

      Some of the corporate heavyweights headquartered in Chatswood include
       CSR LimitedSmith's SnackfoodAbigroupCoffeyPepsico , Carter Holt Harvey   Nortel NetworksOptusLenovoNEC,  and Cisco Systems[6].

      Chatswood’s commercial real estate market has been one of the best performing in the nation over the past eighteen months. Headline office vacancies rates have tumbled from 10.8% to 6.8% for FY15.[7]
      In stark contrast to other Australian office markets, vacancies in Chatswood’s secondary properties are tight. According to Knight Frank the vacancy rate for lower grade space has plummeted to 6.6% - its lowest point since 2002.[8]

      Chatswood landlords have benefitted from a perfect storm of growing tenant demand and shrinking supply. On the demand side established players like Lenovo and Huawei have expanded their tenancies whilst new entrants such as Stellar Asia and Creston Electronics, have contributed to the squeeze.[9]

      At the same time Colliers believe that commercial floor space in Chatswood has peaked. The area has experienced significant stock withdrawals for residential conversion and there are no new buildings in the pipeline. As residential conversion trend continues Colliers expect the supply pool to dwindle further.[10]

      Unsurprisingly given the high demand /falling supply dynamic, Chatswood office rental rates have been edging up. As at July 2015 average net face rents for A Grade space were at $445 per square meter per annum with incentives typically hovering around 25%[11]

      Property analysts don’t expect the landscape to change greatly over the medium term and Knight Frank predict that rents will increase by around 3% pa for the foreseeable future.[12] 

      The Chatswood market will remain a difficult one for prospective tenants to crack. Nevertheless 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. 

      [2] The Willoughby Council, Strategic Plan Background Report, P5
      [6] Wikipedia
      [7] Savills – North Shore Office Briefing, October 2015, P7
      [8] Knight Frank – North Shore Office Market Overview, October 2015, P5  
      [9] Knight Frank – North Shore Office Market Overview, October 2015, P5
      [10] Colliers – Metro Office, Second Half 2015 – Metro Migration, P14
      [11] Colliers – Metro Office, Second Half 2015 – Metro Migration, P12  
      [12] Knight Frank – North Shore Office Market Overview, October 2015, P5
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