The commercial office markets of Pymble and Gordon on Sydney's North Shore tend to attract less attention from tenants than their coveted counterparts such as North Sydney and St Leonards. That soon might change however, thanks to a number of transport and commercial developments encouraging an evolution of the offering in these markets.
Historically, Pymble and Gordon's proximity to the sought-after precincts of Ryde, Macquarie Park and Chatswood have made the suburbs a favourite for both office and industrial tenants, as have their exposure to major highways including Ryde Road, Mona Vale Road and the Pacific Highway. The comparatively generous geographical lay outs of the Pymble and Gordon office markets have too played a role in attracting tenants seeking large space with long-term commitments. This has allowed for larger single tenant offerings that comprise both office and warehousing accommodation, and parking – a positive point of difference and opportunities that are typically more challenging to find within the densely populated North Shore markets of Crows Nest and Chatswood.
"Some tenants have in the past viewed Pymble and Gordon as less ‘attractive’ than other North Shore markets, due to distance from the city and a lack of immediate and diverse amenity for workers,” said CI Australia Leasing Executive Jared Hills. “The suitability of these suburbs to more industrial tenants has also, over time, seen businesses commit to larger spaces on longer-term leases. Naturally, this has led to less of a turnover of tenants and fewer chances for the refurbishment and repositioning of assets. This is a different story to what has taken place in other North Shore markets such as Crows Nest for example, where smaller spaces are taken by a wider range of businesses, typically on shorter-term leases."
Recent years have also seen exciting investments in Pymble and Gordon themselves, including new residential developments, the rejuvenation of high-exposure retail strips and the redevelopment of the Pymble Corporate Centre. Major retailers are also eyeing the area, including the long-running and much-talked about potential establishment of a Bunnings at the former 3M building in Pymble - an iconic corner site that has sat vacant since the tenant's relocation to North Ryde in 2013. It has now been reported that Bunnings has received approval to proceed with its plans. Meanwhile, supermarket giant Aldi made a splash in Gordon with the purchase of the tenanted office building at 810 Pacific Highway for $26.6 million back in 2016. It now has approval for a multi-storey structure including a supermarket and residential shop-top housing. This eventual development will see the further tightening of the market, removing approximately 4,100 sqm of net lettable area. The site is adjacent to the suburb's main retail precinct, the 'Gordon Centre' which has long been tenanted by a Woolworths.
Local investors are active participants in the Pymble and Gordon markets, too. Just last month CI handled the sale of the significant commercial freehold office at 964 Pacific Highway Pymble (pictured), and has a strong track record of negotiating freehold transactions in Pymble. These include the sale of 4-10 Bridge Street for $14.55M, 23 Ryde Road for $5.25M, 939 Pacific Highway for $5.5M and 859 Pacific Highway for $5.3M. Nick Lowry, CI’s Associate Director of Capital Transactions said, “The Pymble commercial precinct has become an area of focus for investors as competition for Lower North Shore assets remains strong. The large land sizes and excellent car parking ratios that are typical of the Pymble market are features not always offered with assets in close proximity to the CBD.”
There has been sustained demand from tenants too, with CI negotiating leases with tenants from the medical and development sectors across both Pymble and Gordon. This is strengthened by commitments from major occupiers to the area, including shipping container provider Royal Wolf which has established its headquarters in Gordon under a long-term lease. And rents are rising too, sitting at approximately 400 – 450 gross per sqm for Pymble and Gordon; a wider trend playing out across Sydney, in particular the CBD.
Pymble and Gordon are also set to receive positive flow-on effects from the host of new transport, commercial and infrastructure developments such as the Sydney Metro, shaping the North Shore and the wider Sydney market overall. Mr Hills added, "The improved connectivity in and out of Macquarie Park and North Ryde that the Sydney Metro will provide, will make these markets even more attractive and accessible for owners and occupiers. The possible further tightening of these office markets as a result, could see an increase in tenants looking North to Pymble and Gordon for more cost-effective solutions. And let's not forget about the war for talent which is very important for occupiers - Pymble and Gordon have a great mix of prestigious schools, train and bus transport options, and diverse residential options which are all positives."
View office space for lease in Pymble and Gordon here.
To learn more about our capability and experience in these markets, or to speak with Mr Hills or Mr Lowry, contact our Sydney HQ on (02) 8238 0000 or sydney@ciaustralia.com.au
