St Leonard’s IBM Building set to be replaced with mixed use tower

7 July 2025

Plans are underway for a significant residential development at 601 Pacific Highway, St Leonards, set to replace the existing IBM Building. The proposed 52-storey mixed-use tower, proposed by developer Stockland, will feature 507 apartments, including 5% affordable housing, alongside retail and commercial spaces.

If plans are approved, the current 14-storey commercial building on the site is set for demolition. The new development will include a five-storey basement for parking and services, a podium (ground floor to level 5) with retail, commercial, and residential lobbies, including affordable housing on levels 3 and 4. 

Dedicated communal amenity spaces will be located on level 5. The residential tower, from level 6 to 52, will house 507 apartments, with additional communal amenity spaces, plant rooms, and structural transfers on levels 51 and 52. Public domain works and infrastructure upgrades are also included in the plans.

A key motivation behind redeveloping the site is prime proximity to public transport, being 350 metres from St Leonards train station, 400 metres from Crows Nest Metro station and just above Pacific Highway bus routes. 

An economic analysis conducted by Stockland supports the shift from commercial to mixed-use residential, citing a sharp decline in the St Leonards/Crows Nest commercial office market. The analysis indicates low demand and commercial rental yields, making commercial land uses no longer commercially viable in the current economic climate. Office vacancies in the precinct have reportedly surged from 7% in January 2020 to 30.5% in January 2025. 

The project has been declared State Significant Development under the Environmental Planning and Assessment’s Housing Delivery Authority which is a NSW Government initiative that is focussed on increasing housing stock in the state. The St Leonards/Crows Nest precinct has been identified as one of the key areas that the government wants to develop due to its infrastructure such as public transport and schools. 

The project is currently undergoing the preparation of an environmental impact statement, which if successful will then go to consultation, assessment and finally a determination.