Sydney office developers target suburbs as CBD sits silent
Office developers are focusing their attention on suburban areas as major tenants look for alternatives to city centres in the wake of the coronavirus crisis.
With lock downs effectively shutting buildings in Melbourne’s CBD and other cities still relatively quiet, developers are now planning new towers in locations including Sydney’s north shore, which is attracting new projects.
While they will take time to build, developers believe that they will have an advantage in coming years by diversifying their risks away from city towers.
In the latest move, Stockland has snapped up healthcare giant Johnson & Johnson Medical‘s office building in Macquarie Park in Sydney’s northern suburbs, and will also develop a new complex in the area for the US company.
It is one of the largest suburban office deals since the coronavirus crisis struck and could be a pointer to more interest in suburban markets as workers shun CBDs.
Stockland and Johnson & Johnson said they had committed to working towards an agreement to design and deliver a new 10,000sqm head office for the health company in Macquarie Park, that will consolidate the 820 office staff from across Sydney.