GPT Group is reviewing its properties at Sydney Olympic Park and Rosehill, for mixed use rezoning opportunities, to take advantage of the rising demand in suburban office and residential markets.
It is also looking to expand its new GPT Metro Office Fund, which is ear-marked as a key growth centre for the group.
GPT's chief investment officer, Carmel Hourigan, confirmed at the recent full year results, the group was actively pursuing opportunities to enhance the value of the portfolio through rezoning and large, mixed-use urban renewal.
"Projects are being investigated at Sydney Olympic Park, and at Rosehill," Ms Hourigan said.
The trend of converting old office space into apartments, that is impacting the capital cities, is fast gaining momentum in the suburbs, according to agents.
While it has been popular for many years, suburban developers have usually targeted more traditional properties, such as old blocks of flats to convert. But as zoning and planning regulations change, it is now office, industrial and older malls, that are in their sights.
The less traditional spaces, such as bank chambers, former ambulance and fire stations and older malls, are also being surveyed for conversion into office and residential.
As more people work for themselves, they are looking for office space near home and transport, without having to pay the higher rents in the capital cities.
"There is 124,470 square metres of property, or about 3.8 per cent of total space, currently earmarked for potential conversion," Nick Hoskins, director, NSW, research & consulting at Knight Frank, said. "There is the potential for these figures to increase as further assets are sold for change-of-use purposes."
In his latest report on the Sydney suburban office market, Mr Hoskins said major projects in the 2015 supply pipeline included 3 Murray Rose Ave, Homebush (developed by GPT, 12,200 sq m, 100 per cent pre-leased to Samsung) and the GPT Metro Fund's 5 Murray Rose Avenue, Werrington Business Park (UWS, 5500 sq m).
"Following in 2016, Camden Council are due to complete their new building for owner occupation (6200 sqm), while the office component of Goodman's Connect Corporate Centre at Mascot, with a 47 per cent pre-commitment to Qantas Credit Union, is also due," Mr Hoskins said.
"The completion of 26,000 sq m refurbished space at 100 Harris Street, Pyrmont, is also anticipated. A number of projects have DA approval for potential completion from 2017, although timing is dependent on tenant pre-commitment."
Mr Hoskins said despite the impact of some additional tenant relocation to non-suburban markets in 2015, the vacancy rate was expected to continue to reduce over 2015 and 2016.
