In general, there is a lack of Class
A space in the greater Sydney area, with buildings such as the Commerce
Tower at 15 Dorchester Street setting the standard for the market.
The federal and provincial governments tend to be the biggest market
for Class A space; however, as the federal government has a very
stringent set of specifications for space it occupies (ventilation
requirements, handicapped accessibility, etc.,) the cost of constructing
or upgrading existing buildings to these standards is expensive,
with the resulting rents of $25 to $28 per square foot gross beyond
that which the private sector will typically support.
There is a fairly large amount of Class C space available
along Charlotte Street in the second and third floor of these old
buildings. In general, most of this space can be classified as out-dated,
with poor mechanical systems (HVAC, elevators, etc.), and the low
rents ($8 to $14 per square foot gross) reflect the nature of these
buildings.
Overall, there will be some demand for office space
on the SYSCO property, however this will primarily be related to
companies locating to the site, or perhaps from engineering firms
wanting offices close to the Coke Ovens and Tar Ponds projects.
Where possible, good quality office space should be preserved and
leased to these firms. Major renovations of older structures are
not warranted, as the costs will be prohibitive.
|
