The expansion of the Royal North Shore hospital has increased the demand for medical services and as more people enter the suburb, retail and food offerings are also rising.
These deals include Tomra Collections who secured 2/39 Herbert Street after winning the “return and earn” government recycling contract, EnerMech who offer pre-commission, operations and machinery maintenance services secured 7-9 George Place and Tilt Industrial Design who are a design and engineering business secured 58 Hotham Parade.
The net rents for these users range from $200 to $240 per square metre net. Colliers International are expecting rents for this market to climb past $240 per sqm net due to the lack of stock.
John Carney, industrial manager at Colliers International said because of increased rents for this area and a higher end use coming into the market ''we are seeing more traditional industrial users being forced to move further west to locations such as Rydalmere, Silverwater and Homebush''.
“There is also a push for a higher use from developers for medical users in Artarmon such as Ramsay Health Care’s new private hospital on the corner of Frederick Street and Herbert Street, proposed medical suites on the upper levels of 12 Frederick Street, which is owned by Dexus, and a proposed private hospital on Broadcast Way which is owned by Lindsay Bennelong Developments,'' Mr Carney said.
“Based on all this activity we anticipate a lot of changes to this market which is driven mainly from high demand from white collar occupiers.”
Brad Sutton, director at Sutton Anderson has completed many deals in Artarmon at rents of between $200 -$300 per sqm and sales ranging from about $2 million to close to $10 million. He says the area is in high demand.
The North sub-market has the most limited supply of industrial zoned land relative to all other sub-markets, representing only a 3 per cent share of land supply relative to the Sydney Metropolitan Area.
Consequently, land values have continued to climb and now have reached a record $2,000 per sqm, similar to the average land values in South Sydney.
Sass J-Baleh, associate director of research at Colliers International, said industrial rents in the North have remained the highest rates compared to all other Sydney sub-markets with incentives decreasing over the past 12 months from 12 per cent to an average of 8 per cent.