The US Consulate General (USCG) will move from Sydney’s CBD for the first time in 25 years, and into North Sydney.
In one of the most significant leasing deals for the area this year, the USCG has leased 6,000sqm of space over six levels at 50 Miller Street from boutique property investment company Sumner Capital and co-investor Prime Super.
Cadigal’s Craig Dolman negotiated the new 12-year lease with options, representing one of the biggest leases in North Sydney.
Sumner Capital director Kirby Parsonage said the deal was testimony to the success of the building’s significant upgrade to an A-grade building with a 5-star NABERS rating.
A new building entrance was added as part of the refurbishment, along with a new lift system and high-quality end-of-trip facilities.
The owners expect to sign a lease with another major tenant for the remaining 4,000sq m of space within the next few weeks.
Mr Dolman said demand was strong for commercial office space in North Sydney as a result of improving transport and infrastructure with the Sydney Metro and Victoria Cross integrated station development.
“North Sydney is viewed as a prime location for corporates and is no longer a secondary market to Sydney’s CBD,” Mr Dolman said.
“The lack of supply and continued demand is supported by new streetscapes, developments and retail offerings.”
He said Cadigal research showed demand increased at an average 28 per cent a year over the three years to March 2018.
The North Sydney market can look forward to more significant leases with NBN Co consolidating its five Sydney workspaces into a single flagship office in North Sydney from late 2019.
It is the major tenant of 100 Mount Street, having leased 20,364 square metres, representing 48 per cent of the new 35-level building.