Developer Time & Place has partnered with construction company Hickory to acquire an 8,089 square metre site in Alexandria, 4 kilometres south of Sydney’s CBD.
The property was sold for an estimated $52.5 million, with an approved stage 1 Development Approval in place which aims to transform the site into a high-quality, contemporary office precinct.
Demand for office space in the south Sydney market has grown rapidly in the last 18 months, partly due to significant investment from Council to transform the area from an industrial precinct into a thriving community hub.
With a critically lauded gallery just minutes away and popular hospitality spots nearby, Alexandria’s evolution into a contemporary destination has been noticed by Sydney’s creative and corporate communities alike.
Time & Place director, Tim Price, said the days of tightly packed offices in the middle of a crowded city are gone.
“We are conscious of the changing priorities amongst corporate tenants, and we want to ensure our latest offering in Alexandria reflects this. Plus, beyond extra space, moving out of the CBD has huge ramifications on a business’s overheads through its competitive pricing.”
“Location is a huge factor for us when we’re planning our projects. Alexandria is full of Sydney’s busiest cafes, in fact, its population almost doubles over the weekend with people lining up for brunch. We want to capitalise on this and deliver a commercial precinct which will see it thriving all week long,” Mr Price said.
Michael Crombie, National Director of Property Sales & Leasing and Director in Charge of Colliers’ Sydney South office, said the office market is experiencing a period of rapid change.
“We are seeing a major resurgence of occupiers from the CBD and fringe markets coming to Alexandria. More occupiers today are looking for a cultural change; workers are bored of the CBD and want more – more space, more light and better value for money,” he said.
The office precinct was designed by John Wardle Architects and selected through a design competition run by the City of Sydney and Skylife.
The architectural scheme is informed by Alexandria’s industrial past, aiming to create an experiential precinct that encourages a workplace community.
Marking his first major project in Sydney, Wardle describes the design as “A precinct with an abundance of landscape and urban experiences that will become a new gateway to the Alexandria neighbourhood. A linear outdoor terrace will provide amenity and opportunity for culinary experience at street level, and a central courtyard will draw the community into a park-like setting within the building. The design looks to the future while recalling the character of Alexandria’s manufacturing and industrial past”.
Wardle’s original vision included provisions for a three-storey building comprised of 13,500 square metres of commercial, 3,000 square metres of retail, and 172 car spaces.
The acquisition by Time & Place will see some amendments to the plans, which will largely align with the existing concept.
The changes will be informed by the demands of a post-pandemic world, with large floor plates that offer significantly more space per employee an increasingly important factor.
Hickory co-founder, Michael Argyrou, likened the project’s potential to the group’s Market Lane project, adding: “We want to expand on the vision of the ‘future office’ that our South Melbourne development encompassed.”
“This vision is one that provides a life experience that enhances the wellbeing and productivity of its occupants. A ‘future office’ stimulates the senses, promotes creativity and enhances human interaction; it’s an office where people want to be.”
Time & Place will commence construction on the project ahead of the pre-leasing process.