Sydney developer MackyCorp is set to go ahead with the construction of the biggest A-grade office tower at Liverpool in Sydney’s southwest, with a view to securing a lease pre-commitment by the end of the year.
MackyCorp has achieved council approval with a deferred commencement to build Liverpool Quarter in Sydney’s southwest made up of a 25,000sq m A-grade office tower, connected to a refurbished pub, the “Commercial Hotel”, a retail laneway known as The Stables and a public plaza.
Located directly opposite the Liverpool train station and bus interchange, it will provide A-grade office spaces to serve the needs of Sydney’s future third CBD and commercial centre to Sydney’s second planned airport in Badgerys Creek.
“Liverpool Quarter is an icon for Liverpool’s growth and prosperity, an urban place that the people of Liverpool and the southwest want and deserve,” MackyCorp managing director Michael Hercus said.
“State and federal infrastructure spend within the Liverpool local government area is the highest in the country, this along with record land release and population growth in the southwest has provided a pool of labour that industries are tapping.
“Liverpool is Sydney’s third CBD and is an appealing alternative to Parramatta.”
The group is offering contiguous A-grade office spaces for tenants and while it hasn’t yet formalised rents, Mr Hercus says it will be “significantly cheaper than Parramatta with rent and incentives by negotiation”.
A-grade rents in Sydney’s second CBD of Parramatta have continued to rise due to low vacancy, reaching a net effective annual rent of $460 a square metre in June, according to Savills. Due to strong demand, Parramatta’s A-grade vacancy reached a record low of 0.8 per cent at the start of the year.
MackyCorp is now in the throes of its leasing program and is looking to close out a strong pre-commitment for its office tower in the next few months.
The tower will have elevated green spaces, end-of-trip facilities and an activated double-height lobby. At the ground level, there will be a boutique retail precinct and flexi-working spaces.
Outside the tower, tenants will have access to The Stables, a “Melbourne-like” spice-alley with boutique retail, eateries, cafes and bars stretching from Bigge Street to Scott Street.
Liverpool City Council has been spearheading a lot of new commercial developments and says Liverpool Quarter is an example of the type of development it is looking for.
“As Sydney’s next CBD, there is a lot of interest in A-grade commercial and office space. We are seeing a lot of developer interest and also demand from those seeking quality office space,” mayor Wendy Waller said.
Article originally published in the Australian Financial Review July 29, 2019.