HEALTH care manufacturer St Jude Medical has signed the largest leasing deal in Sydney's North Shore so far this year, negotiated by Colliers International.
Colliers director of industrial Geoff Hunt has signed St Jude Medical to lease 2,500 sqm at 17-19 Orion Road, Lane Cove.
The AMP-owned complex comprises two units with a total of 6,461 sqm of net lettable area and 150 car spaces. St Jude Medical has committed to 1,816 sqm of office space, 703 sqm of warehouse space and 60 car spaces.
The 10-year lease term was signed for $185 per sqm per annum with a 20% incentive.
The adjoining unit is currently vacant but Hunt is experiencing strong enquiry.
“The health-related industries are less affected by the economic downturn than other sectors, as they are continuing to grow and target the North Shore belt from Artarmon to North Ryde, and particularly Lane Cove.
“St Jude Medical has forecast growth in their business and chose to move to a bigger and better quality space in the same precinct. There are several attractive factors for office-warehouse space in Lane Cove.
“St Jude Medical has 60 car spaces and they don’t have to pay for the spaces whereas it costs $1800-2400 per car space per annum on average in North Ryde,” he added.
Hunt said Lane Cove is becoming the most popular destination. Hunt observed that demand for office/warehouse space is rising as Colliers International is experiencing 60,000 sqm of general enquiry over the past month and is currently negotiating around 20,000 sqm of space for several tenants.
“North Ryde has evolved from being a typical office-warehouse location to a business park precinct of only office space, which makes it not feasible to incorporate warehouse space in new developments due to land value.
“Lane Cove is also benefitting from the lack of larger warehouse space generally available in North Ryde and Artarmon.” Hunt said.
Colliers North Sydney valuer Brian Hickey said Lane Cove appeals to both institutional and private investors due to the large spread of capital values appealing to both entities.
“Due to the conversion of North Ryde and Macquarie Park into an almost pure office park, Lane Cove should see moderate rental growth for high clearance warehouse accommodation in the medium to long-term.
“However, this may take some time due to the current challenging economic environment although, on a total occupancy cost basis, Lane Cove does appear to be an attractive option,” Hickey concluded.
Australian Property Journal
