North Sydney rises as tech and media hub with new deals

Prior to the collapse of the dot.com boom in the mid-1990s, North Sydney was known as the main tech and media hub for the country. Tenants were used for offsite technology to support the main television studios of the ABC, then located at Artarmon and the Nine Entertainment operations at Willoughby.

After languishing with near 20 per cent vacancy rates when developers were forced to sell and offices moved back to the city to new buildings, the area is now sitting at about 6.4 per cent.

The two latest deals will add to the arrival of the Nine Entertainment Co (the owner of this publication) and SAP at 1 Denison Street, the Vodafone head office at 177 Pacific Highway and the NBN office at the newly-opened, Dexus-owned 100 Mount Street.

Microsoft will join Nine at the Winten-owned $1.2 billion, 1 Denison Street skyscraper when it opens late next year.

Under the deal, the tech giant has secured a 10-year lease across 10,655 square metres from levels 25 to 31 of the 37-storey building.

Multiplex is currently constructing the project with completion expected by the end of 2020. Microsoft is planning to move into its new premises in mid-2021.

Microsoft will consolidate a number of offices into the new North Sydney location including its current head office at North Ryde. It will retain its office at 1 Martin Place in Sydney’s CBD.

Mark Lacey, regional director at CBRE acted for Winten and Simon Crouch, head of tenant advisory at Colliers International represented Microsoft in the transaction.

In its first lease deal, ESR Australia has secured a 10-year lease with oOh!media at 73 Miller Street, North Sydney, across 6,858 square metres, commencing in December 2020.

The property is held within the Propertylink Australian Commercial Trust I (PACT I) in a joint venture between ESR and Partners Group. PACT I is undertaking a $60 million capital expenditure program to reposition the asset, which, on completion, will deliver 19,062 square metres of prime office accommodation to the North Sydney market.

Rahul Ghai, managing director, private real estate APAC, at Partners Group, said, “we are delighted to welcome oOh!media into 73 Miller Street, a repositioned Grade A office building boasting spectacular harbour views”.

Phil Pearce, chief executive of ESR Australia, said it is an exciting opportunity for ESR, “leveraging our development expertise and active approach to asset management to reposition 73 Miller Street, North Sydney for core institutional owners”.

Under the lease, oOh!media will occupy levels two to five of the building, consolidating existing multi-tenancies with the lease representing 36 per cent of 73 Miller Street’s net lettable area.