Sony Australia is relocating into a building in North Sydney owned by a Charter Hall fund. The electronics giant will occupy 2,400m² of refurbished office building at 165 Walker Street, which represents nearly half of the asset's net lettable area. There have not been many large deals in North Sydney this year. Large parcels of space in excess of 2,500m² have been in short supply in the area. One of the few other noteworthy transactions is infrastructure group Jemena's move to Investa Office's 99 Walker Street, where it will take 5,600m² but a number of other larger occupiers have been forced to consider Chatswood or the Sydney CBD.
Sony will move from its current home at Macquarie Park, where it takes a similar amount of space. The deal means positive net absorption for North Sydney. The seven-year lease begins in February 2014 and includes naming & rooftop signage rights. Sources say the rent would be in the $480-$500/m² range. It is understood it was a market deal with a 25-30% incentive.
Source: Australian Financial Review - Friday 17 October 2014