What About Me?

What About Me?

How many times in the last 3 months have you heard or read the words, prime, premium, core, flight to quality etc all relating to the Sydney office market with the focus being the CBD.

How many times have you read or heard about the “other” markets like North Sydney, Crows Nest/St Leonards, Chatswood, Macquarie Park, and Parramatta in that same period?

Considering these markets make up about 40% of the over 8,000,000 m² of the Sydney office markets, you would think there would be more attention paid to them.

The pendulum is swinging towards the CBD and some of the generous incentives on offer. It wont be long until it swings back, when the CBD becomes unaffordable, and some of the tenants return to other markets.

Here are some market facts:

One could say the buildings in the other markets are not as shiny or the locations have less amenities. However, these other markets play just as an important role in the whole of Sydney market as the CBD does.

We keep hearing about “flight to quality”.  But “flight” changes as the degree of movement changes. Just like the work quality has changed to value and is soon to change to cost. Markets go up and down. I can hear the non-CBD markets singing “what about me, it isn’t fair…”.

To those markets, and those who know and operate in them, don’t worry, we are watching the accordion effect in full swing and the one thing that doesn’t change is change itself.