A wide range of new, smaller tenants have entered the central business district, adding buzz and variety to the traditional financial and legal leases.
The latest is LJ Hooker, which has expanded its commercial real estate services to the heart of the Sydney CBD.
The office is occupying 700 square metres at the Harry Seidler-designed 9 Castlereagh Street. Terms of the lease with Charter Hall have not been disclosed.
LJ Hooker Commercial Sydney is a corporately-owned office in which industry stalwart Warren Duncan is a shareholder. This is a similar partnership to LJ Hooker South Sydney following the acquisition of Billicorp in 2013.
Mr Duncan, who will lead the office, said LJ Hooker Commercial Sydney comprises a team of 15agents who will service commercial, retail and industrial and retail clients along with an LJ Hooker Buyers Advocate, Kiril Ruvinsky.
"Moving to 9 Castlereagh Street will allow us to better service our clients and attract top talent," Mr Duncan said.
"We expect LJ Hooker Commercial Sydney will double in size in the next 12 months."
Technology groups are also entering the city, taking up space, traditionally sought by banks, financial institutions and law firms.
China Unicom, a Chinese-state owned telecommunications operator and the world's third largest mobile phone provider, is the latest to secure office space in the Sydney CBD.
The group has leased 200 sq m at 48 Hunter Street, Sydney, in a deal negotiated by Ray White Commercial office leasing director Anthony Harris.
"We have seen a surge in Chinese businesses seeking office space in the Sydney CBD," Mr Harris said.
"Demand is coming from technology and property companies investing in Australia and this has had flow-on demand from associated property marketing firms and Chinese real estate agents servicing these clients."
Sean Hennessy, JLL's senior leasing executive for Sydney, said he was taking calls for space from smaller tenants who are taking advantage of the sub-500 sq m space available in Sydney's CBD's office market.
"It's a very competitive space and tenants are actually missing out if they don't move quickly enough – it's a noticeable trend in this end of the market," Mr Hennessy said.
"The greatest competition is with tenants sub-500 sq m and a key focus for these businesses is to focus on fitted options due to shorter lead times."
Three recent examples of leasing deals by Mr Hennessay in this end of the market are Sutton Douglas Lawyers, which has leased at 179 Elizabeth Street from LaSalle Investment Management; Citi Recruitment, which has leased an office at Level 4, 40 King Street, from Bledisloe Property Group Pty Ltd; and Design & Build Recruitment, at Suite 3.01, 99 Elizabeth Street, from Tackelly No.8 Pty Ltd.
According to Mathew Tiller, LJ Hooker national research manager, unlike the normal market cycle, Sydney CBD vacancies have started to track down, but incentives remain elevated. This provides a limited window for tenants looking for new space to take of the market.
