Comparison of global office costs

Sydney office block

Sydney's office infrastructure is of the highest quality. Prime office space offers flexible layouts and large floor plates, multi-zoned air conditioning, security access, car parking, short waiting intervals for lifts and pleasant views.

Total occupancy costs for Grade A office space in the Sydney CBD are lower than in many other global cities, and less than half the cost in some cases. Colliers International estimates that some 836,000 square metres of commercial floor space supply is currently in the CBD pipeline at various stages of delivery, with 51% of this pipeline supply pre-committed.

Office locations outside Sydney's CBD offeran attractive and reasonably priced alternative to the city centre. Locationssuch as North Sydney and Crows Nest, described as the global economic corridorof Sydney, and Parramatta, considered to be Sydney's second CBD, offer A gradespace well below CBD prices. Non-CBD locations are closely linked to the SydneyCBD through easily accessible transport infrastructure.

World leader in environmental sustainability

The Australian property industry is a recognised world leader in environmental sustainability and the greening of buildings. Through the National Australian Built Environment Rating System (NABERS), the ability to evaluate a building or tenancy's energy efficiency,water usage, waste management and indoor environment quality has driven best practice in the industry and led to a significant reduction in environmental impact, higher valuations and lower operating costs. In New South Wales, world leading sustainable development is currently underway at Barangaroo, Sydney's new financial services centre in the CBD and the biggest development in Sydney since the 2000 Olympics, which will be carbon neutral, water positive and generate zero waste.

NABERS is managed nationally by the NewSouth Wales Office of Environment and Heritage, on behalf of the Commonwealthand other state and territory governments. Over 75 percent of Australia's office market has been rated with NABERS Energy ratings.

Sydney office rental costs

Sydney CBD

Rental gross face Low $/sq.m High $/sq.m
Premium 1,150 1,500
A Grade 970 1,200
B Grade 800 970

North Shore

Rental gross face Low $/sq.m High $/sq.m
Premium 875 935
A Grade 715 765

Macquarie Park

Rental gross face Low $/sq.m High $/sq.m
A Grade 420 505

Parramatta

Rental gross face Low $/sq.m High $/sq.m
A Grade 535 615
B Grade 420 470

Source: Savills Quarter Times National Office Q2/2017, 25 July 2017