4 February 2025
Major commercial property owners in North Sydney have strongly criticised the council’s proposed Special Rate Variation, warning that a recommended increase of 87% would undermine investment confidence and harm businesses already struggling with high vacancy rates and post-pandemic economic pressures.
In submissions to the council’s consultation process, Pro-Invest Group, Stockland, the investment managers of 2 Blue Street (Blue & William), and the owner of the Victoria Cross Over Station Development at 155 Miller Street have all voiced opposition to the proposed rate increases.
The owners of Victoria Cross Over Station Development at 155 Miller Street, home to a new Metro concourse retail precinct, said the SRV would hurt businesses just as they begin trading. “Retailers in the concourse only commenced operations in September 2024, and those along Miller Street will not open until 2026. Raising costs during this critical early trading period will put unnecessary strain on their viability,” the submission stated. “These businesses are critical to the success of the new transport hub, and additional financial burdens will only stifle growth before they have had a chance to establish themselves.”
“Retailers in the concourse only commenced operations in September 2024, and those along Miller Street will not open until 2026. Raising costs during this critical early trading period will put unnecessary strain on their viability,” the submission stated. “These businesses are critical to the success of the new transport hub, and additional financial burdens will only stifle growth before they have had a chance to establish themselves.”
Stockland, which owns 601, 110, 118, and 122 Walker Street, argued that the council’s rate hike is out of step with NSW state pricing tribunal guidelines for reasonable rate adjustments and would place undue financial pressure on commercial tenants. “North Sydney has long relied on its competitive office market to attract businesses. A sudden and disproportionate increase in rates risks pushing tenants away and making the area less attractive for future investment,” Stockland’s submission said. It added, “Our commercial tenants are already struggling with post-pandemic economic pressures, and this rate increase will force some of them to reconsider their presence in North Sydney.”
The investment managers of 2 Blue Street (Blue & William) echoed these concerns, pointing to rising vacancy rates and competition from Sydney CBD and Macquarie Park. They warned that increasing council rates at this scale “would place an additional financial burden on tenants already navigating an uncertain post-COVID commercial market” and deter businesses from leasing office space in North Sydney. The submission continued, “This proposal will increase outgoings significantly for businesses, making it harder for them to remain competitive in a challenging economic climate.”
Pro-Invest Group, which owns 100 Walker Street, said the plan contradicts North Sydney Council’s own economic development strategy aimed at revitalising the area. “The proposed rate increase will negatively impact tenant affordability, disincentivise businesses from choosing North Sydney as a base, and reduce the attractiveness of the precinct for future investment,” it stated. The group further warned, “Council must explore alternative revenue sources rather than placing the entire burden on commercial property owners who are already grappling with rising costs.”
Multiple submissions noted that the council’s proposed increases run counter to its stated goal of positioning North Sydney as a ‘top-tier office precinct’. The property owners have called for alternative financial strategies and are requesting meetings with the mayor and CEO to discuss the potential economic ramifications of the SRV.
North Sydney Council has argued that the increases are necessary to address budget shortfalls and fund essential infrastructure.