The opening of the $440 million new development of the Macquarie shopping centre, the relocation of Ricoh and Abbott group and the inflow of new apartments, will make the area rival that of other Sydney central business districts.
Fashion labels, H&M, Uniqlo and Forever 21, have all enticed floods of shoppers to the AMP mall but have also made the area attractive for new businesses.
It is forecast the Macquarie and nearby North Ryde has a trade area of more than 400,000 people and is seen as the new capital of household wealth in Sydney. Meriton, among other developers have added to the mix with apartment towers, to accommodate the needs of the Macquarie University and businesses.
According to JLL agents, these companies are taking advantage of the increasing high-density urban development occurring in the area.
The development is spurring improved infrastructure, including the integration of the existing Chatswood to Epping rail line into the new North West Rail Link, to meet the needs of the university and Macquarie Hospital.
JLL's head of North Sydney, Denys Bizinger, said the new industries include healthcare-focused businesses in Macquarie Park collaborating with Macquarie University's Research and Development team and Macquarie Hospital.
"We anticipate that Macquarie Park will become one of Sydney's biggest CBDs with its three existing railway stations being integrated into the North West Rail Link and proximity to the university and shops," he said.
JLL's director of business parks, Ben Byford said recent deals on consolidation include the multinational imaging and electronics company Ricoh, which recently leased more than 6000 square metres at 2 Richardson Place, North Ryde. JLL negotiated the deal. The relocation into North Ryde involved moving three offices from North Sydney, Frenchs Forest and Sydney CBD into the one location.
"Global healthcare company Abbott also moved three divisions which were spread across Botany, Pymble and Lane Cove into one 4200 sqm freestanding facility at 299 Lane Cove Rd, Macquarie Park. JLL also negotiated this deal," Mr Bizinger said,.
"Dozens of businesses have done the same in consolidating several offices to one larger Macquarie Park space and we anticipate this trend will continue with Macquarie Park rents and incentives being cost effective in comparison to surrounding precincts such as Chatswood, St Leonards and Frenchs Forest," said Mr Bizinger.
According to Colliers International sales activity was quiet in the first half 2014, which reflected a lack of stock rather than a lack of demand and investment opportunities, which did eventually move quickly. Recent sales included 10 and 12 Julius Avenue, sold by Mirvac to Blackstone in June as a part of a portfolio sale and represented a major transfer of ownership.
"This market continues to be underpinned by white collar employment. The growing residential population and ongoing infrastructure work will improve the attraction of the area as a place to work," Colliers agents said.
