Lack of Commercial Interest Challenges $60m Elizabeth St Redevelopment in Surry Hills

Despite the potential to create hundreds of jobs, the developer behind the $60m redevelopment on Elizabeth St in Surry Hills claims that lack of commercial interest has hampered progress.

The substantial redevelopment plan, approved in September 2023, aims to transform vacant buildings into a 10-storey commercial hub in the heart of Sydney’s CBD. The proposed site, located just meters from public transport on Elizabeth St in Surry Hills, is set to include 6,300 square meters of new commercial office space alongside ground-floor retail.

This development would convert five separate terrace buildings into modern office spaces reaching 50 meters in height, significantly changing the area’s landscape.

The $60-million project, spearheaded by the development company Stasia, is projected to generate between 200 and 300 construction jobs and an additional 800 to 1,200 operational jobs once completed. This job influx is anticipated to revitalise the local economy and enhance the area’s unique character through increased activity and service demand.

Commercial Interest and Challenges

While initial documents from the City of Sydney suggested that the development would attract major creative firms, Matthew Harris, a Stasia project developer, reported that commercial interest has been disappointing.

Mr Harris highlighted the challenges of securing commercial tenants without significant precommitments, indicating that the market’s dynamics have shifted unfavourably over the years.

The redevelopment is expected to have a broader positive impact on the community by activating the precinct. The plan includes the creation of a new laneway and significant architectural contributions by Candalepas, enhancing pedestrian connectivity between Foster Lane and Reservoir Street. These changes will foster a vibrant, transient working population and stimulate further commercial growth.

Published 23-April-2024