Sydney’s financial power base to expand towards Circular Quay

Built in 1962 for AMP, 33 Alfred is in the heart of Sydney’s financial district. The building housed the financial services and wealth management giant for most of its life until the company’s fall from grace during the financial services royal commission six years ago. AMP’s demise has left the building in the hands of funds run by Dexus and Mirvac.

“33 Alfred is essentially a brand new premium tower and tenants have gravitated to Sydney’s finest harbour views which capture all of the Circular Quay icons as well uninterrupted views of the harbour’s northern and eastern reaches,” said Cadigal director Mark Tindale, who has worked on Sydney CBD office leasing for over 30 years.

“It’s fair to say that the leasing results at 33 Alfred alongside Quay Quarter Tower prove that Circular Quay is now equally prominent for lawyers as is the traditional eastern hill and Martin Place locations.”

With its redevelopment, 33 Alfred has helped push the centre of corporate power in Sydney towards Circular Quay. Nearby, the Gateway building that was once the head office for Credit Suisse in Australia, is now home to HMC Capital, a major investment manager, and Regal Funds Management.

Across the road, Barrenjoey Capital Partners has moved into Quay Quarter, which also counts Corrs Chambers Westgarth and Deloitte as tenants.

That means more competition for the buildings that have long been sought after by the country’s most influential financial and legal firms, from Chifley Tower – the home of UBS and Morgan Stanley – to Governor Philip Tower, where Goldman Sachs has its offices.

Despite being more than 30 years old, both Chifley Tower and Governor Phillip Tower remain much loved among the powerful, Mr Tindale said.

“Chifley and Governor Phillip are still widely regarded among the finest and highest profile office buildings in the country. They are the central figures of the largest cluster of premium towers,” he said.

“Far from lifeless museums, they’re thriving, fully occupied buildings where the top end of town enjoys the bump factor around the lobbies during the day, and the cafes and dining within the precinct.”

The new commitments at 33 Alfred indicate that interest in leasing offices is returning – as long as they are high quality and located in the CBD’s financial core – after several lean years after the COVID-19 pandemic drove a surge in working from home. Industry figures surveyed by The Australian Financial Review said the office market was at an inflection point with modest price rises possible this year – but only for the best CBD towers and not in all cities.

That improved sentiment follows a two-year downward cycle where some assets have lost as much as 30 per cent in value from interest rate hikes and demand for space faltering in the switch to flexible workplaces.

BlackRock will take two floors – level 11 and 12 – at 33 Alfred. While the building is being leased at up to $1850 per square metre, other premium offices in Sydney’s financial district fetch even more. Gilbert + Tobin is expected to pay between $2000 and $2300 per square metre when it moves from Barangaroo into the top floors of the future Chifley South development.

BlackRock will occupy about 2500 square metres across the two floors, an increase of 800 square metres on its current Chifley Tower head office.

The global asset manager’s future neighbours, Allens and Pinsent Masons, are also increasing the amount of space they are renting. Allens will occupy 11,000 square metres, about 1000 more than it uses at Deutsche Bank Place, while Pinsent Masons is upping its office needs by 1850 square metres.

The decision by BlackRock, Allens and Pinsent Masons to increase their footprint is welcome news to a battered office market, pointing to green shoots as the top end of town seeks more office space again.

So far, it has largely been smaller companies that have wanted to rent more space, according to Cadigal research. The consultancy’s research indicates the 575 companies that moved to new offices between 2021 and 2023 experienced an 11 per cent increase in office footprint. Among those movers, 38 per cent also upgraded to higher-grade offices.

Dexus leasing head Hamish Stuart said 33 Alfred was 85 per cent leased ahead of its reopening in mid-2025.

“This is an exciting milestone, which is achieving strong leasing momentum ahead of development completion,” Mr Stuart said. “The future-focused workplace is attracting high calibre customers who are looking to be co-located in a dynamic professional environment in a prime CBD location.”