Sydney's office market place continuing to perform nicely - Real Estate - Commercial Property

Australia's office marketplace continues to improve, with a quantity of high-profile international businesses eyeing off places of commercial and industrial real estate. Sydney commercial real estate is at the forefront of this growing attention, and with speculation mounting that Westfield could look to sell part or all of its two office towers on Pitt Street Mall, foreign investors are as keen as ever.Immediately after becoming largely undamaged by the Global Monetary Crisis, international investors continue to have a developing interest in Australian real estate investment trusts due to the stable economic climate, and high office occupancies and capital values.Final December, South Korean National Bank's buy of the Aurora Spot Office Tower for $658 million was 1 of the most substantial recent deals for commercial property in Sydney. Speaking at the Citi 2010 Australian Investment Conference in October, Charles Moore, fund manager for the Commonwealth Property Office Fu nd, Tino Tanfara, chief executive of ING Office Fund, and Paul Say, chief investment officer at Dexus Property Group, mentioned there was evidence the Australian office marketplace is nevertheless performing well.

At present the typical office vacancy in Sydney is about 7 per cent and new buildings along Castlereagh Street in the CBD are largely pre-committed. Landlords have also predicted beneficial rental growth next year as the need for rental incentives (such as totally free office fit-outs, auto parking and rent-totally free period) decreases, and demand for office space increases.

Making new office space is also increasingly becoming implemented to fund further developments in Sydney's suburbs. A new strategy to redevelop Redfern consists of plans to build commercial office space, a health club, an underground auto park and housing for university students. Mick Mundine, CEO of the Aboriginal Housing Enterprise, says that money generated from this commercial office space will be implemented to keep economical housing in The Block.