Billbergia adds the tallest tower to the North Sydney skyline

It was designed by architects fitzpatrick+partners with the engineering of the 650 square metres into the tower undertaken through a collaboration between engineering firms TTW and WSP, as well as Billbergia’s in-house construction team.

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Leasing agents Colliers International and CBRE have pre-leased 10 per cent with a further 10 per cent under offer and said the office floors that start from level 25 will have views spanning Sydney Harbour and to the Sydney CBD.

After years of inactivity, North Sydney Council has given the green light to about $11 billion worth of new projects in the past few years.

Developments that are on the drawing board or under construction, include Lendlease’s $1.2 billion Victoria Cross metro station development and its joint venture at Blue and William Streets; Stockland’s proposed $1.3 billion redevelopment of 110-122 Walker Street site and the private developers Third.i’s $650 million skyscraper known as Warada on Walker, being built with joint venture partner Toohey Miller.

They come against the backdrop of a volatile office market where vacancy in the area stands at about 16.6 per cent at the Property Council’s last count.

Ray White Capital’s head of research Vanessa Rader said the CBD and fringe office markets were one of the hardest hit during COVID-19. This was due to the move to work from home which has led businesses to reconsider their accommodation needs, either relocating, reducing, or vacating their office premises.

“As a result, office vacancies across the country have shown an increase putting pressure on rents and capital values,” Radar said.

But she said that in the longer term, the underlying demand for the sector will remain high given the past 10-year return of 10.8 per cent per annum.

LJ Hooker Group’s head of research, Mathew Tiller, agreed the office sector’s recovery was underway “but still a long way from pre-pandemic occupancy”.

“The leading office markets of Sydney and Melbourne have recorded incremental increases in rents but Brisbane – with mining performing strongly and tourism in recovery – recorded the fastest growth on rents this year, albeit from a low base,” Tiller said.

“The upward trend in rents may surprise tenants who are coming off leases, but it’s a reflection of landlords wanting to peg their agreements to [the] CPI; incentives remain traditionally high.”

He said leases were still being negotiated, but occupiers were uncertain how much space they needed.