Property investment management firm JLL has released a report of Sydney’s infrastructure stating New York’s Manhattan is a template for development, as Sydney’s population growth is set at just over forty five percent between now and 2036. As a result of growing residential population, social infrastructure will need to develop to keep up with the demand.
Office landlords are taking advantage of otherwise redundant foyer space and using it as another revenue centre for their corporate buildings.
Food and beverage
Office landlords are taking advantage of otherwise redundant foyer space and using it as another revenue centre for their corporate buildings. Sydney CBD is already an active hub for “food court” style offerings for office employees. The northern CBD corridor (Bridge St) is undergoing resurgence to more upmarket restaurant space, and it is expected food courts such as Australia Square will also undergo a face-lift.
As buildings begin transitioning from commercial to residential space, particularly along Elizabeth Street, this will open opportunities for trading outside of business hours. As office tenants, this will mean a larger selection of offerings for lunch and dinner, and create a much needed facelift of Sydney’s dining scene.
Early childhood education and care
As more families move to CBD locations, the number of child care places is predicted to double. As of July 2013 there were 4,502 child care spots available in the various CBD care centres, which according to JLL’s report represents a significant shortfall according to current demand. Office workers requiring child care facilities are expected to increase significantly, and as such combined efforts from the public and private sectors are required to revamp infrastructure.
Manhattan experienced a similar change in CBD demographic between 2000 and 2010. During this time, office vacancy rates increased and gave way to residential conversion. As a result, the education sector, particularly early childhood education, saw a significant boost and was able to expand as a result. For office tenants in the CBD, it is hoped that the Sydney education sector will be able to do the same.
Fresh food, health services, leisure, social and cultural infrastructure?
As the demographic of Sydney CBD diversifies, so too will the types of services offered in the area. As this inevitable change takes place, office tenants should see the advantages of the diversification of Sydney’s social landscape. Sydney is set to become a hub of activities and community, rather than a business centre alone.
If you would like to know more about the impact of these changes on your business, and what this means to you as a tenant, contact us today.