This article was published on 8 August 2014.

July 2014 - SONY Switch to North Sydney

In one of North Sydney's bigger office leasing transactions for 2014, Cadigal North Sydney have been successful in securing Sony Australia to 165 Walker Street North Sydney. Sony will relocate its Sydney Head Office from Macquarie Park in early 2015 to 165 Walker street, leasing circa 2,500sqm as well as building naming and rooftop signage rights.

We feel this is a very positive deal for North Sydney, providing a new high profile tenant to the precinct as well as delivering positive net absorption. We are starting to see a number of larger traditional business park occupiers like Sony, revisit more traditional CBD's like North Sydney given their desire to improve staff amenity, transport links and create a larger catchment to attract staff.

Unlike the Sydney CBD, North Sydney is currently starved of large parcels of office space in excess of 2,500sqm particularly in the A grade sector, where we see current vacancies sitting at around 2.5%. Over the past 24 months North Sydney has missed a number of larger occupiers given the lack of large A grade opportunities offering contiguous floors. We welcome the new Leighton's development that is underway at 177 Pacific Highway, we are also very positive about the arrival of 1 or 2 other new developments for North Sydney.

We are confident this  transaction will help raise the profile of North Sydney and provide some momentum for bigger lease transactions to follow.