Sydney CBD’s vacancy rate of 4.7 per cent, the lowest it has been in 18 years.
Colliers has forecast that it is expected to tighten further to 3.5 per cent by the middle of next year as strong population and jobs growth continue to drive the market.
Chatswood’s office vacancy rate currently sits at 6.5 per cent, with the North Shore office precincts remaining tightly-held.
“The position and quality of our Victoria Avenue asset has resulted in continuously high occupancy rates,” Cromwell head of property Bobby Binning said.
Chatswood looks set to benefit from the new Metro Rail line with Chatswood to Rouse Hill due to open in 2019.
It remains one of the only markets in Sydney that has not been disrupted by the new metro rail link construction.
“Chatswood is humming with activity as businesses explore office space beyond Sydney CBD,” Cromwell head of property Bobby Binning said.
“As market dynamics shift, a major drawcard to the precinct has been the amenity offering and transport options, with the Chatswood to Sydenham Metro Rail planned for 2024.”
Earlier this year, Cromwell submitted a development application for an additional low-rise 3,500sq m office building and a 156 guest room, full-service hotel on the site.
The pending DA also outlines a large plaza, end-of-trip facilities, outdoor, conferencing and dining facilities.
Property fund manager RF CorVal recently listed its 15-storey Chatswood office tower with expectations around the $150 million mark.
Earlier this year, an amalgamated undeveloped super site hit the block in Chatswood with price expectations around the $60 million mark.