Newcastle ready to go to next level
Attendees at the Property Council lunch in Newcastle on 19 March heard that Newcastle is in a strong position to drive future growth in the commercial office sector and attract new tenants to invest in the local area.
Newcastle Mayor Nuatali Nelmes and a panel of property and business experts analysed The City Council’s move to Gateway Two, new industry data and Newcastle’s key areas of growth and where new investment will be seen.
The Newcastle office market reflects a stable local economy.
There is a total office vacancy of 8.9% and an A grade vacancy rate of 6.4% with Charlestown also performing well with an A grade vacancy rate of 3.35%.
New, high quality office space supply is critical to attract global tenants that provide jobs and further investment in the local area.
“Newcastle could move to the next level in the years ahead and attract major corporate tenants to drive local jobs and further investment. Our commercial occupancy costs coupled with the residential affordability, proximity to Sydney and great lifestyle options means Newcastle has all the key ingredients to attract skilled labour and new business to the Region” Peter Macadam, Director of Commercial Sales and Leasing at Colliers International said.
“Newcastle experienced four years of no office development immediately following the Global Financial Crisis but we’re now seeing a consistent pipeline of investment with Gateway Stage Two and the Newcastle Interchange committed adding to our A Grade market in the coming years.
“Compared to competing markets like Parramatta and the Gold Coast, Newcastle performs well. There is a healthy pool of skilled workers to draw from already, however the Government investment in infrastructure and connectivity to major markets is providing our region the platform to compete on a national level and attract and retain skilled workers. Newcastle’s lifestyle offering and beautiful natural surrounds, along with key transport infrastructure such as light rail and airport make it very competitive.”
Property Council NSW Executive Director Jane Fitzgerald said the fact that Newcastle City Council was moving to the new Gateway site would drive new investment in the precinct.
“New commercial precincts need strong anchor tenants and Newcastle City Council fills that role. Other emerging centres such as Parramatta have found that once a strong anchor tenant moves in, complimentary tenants often follow creating an independent commercial hub.
“Commercial offices are now developed with great design and state of the art working environments, but to create a great commercial precinct you also need good transport access and local amenity including green space; Newcastle has got these elements and is ready to go to the next level.”