The converison of offices into apartmentsin the traditional core of the central business districts has also forced tenants to the more peripheral zones.

DEXUS Research's Australian Real Estate Quarterly Review for the fourth quarter of this year, says although rental growth has varied across markets in the past quarter, the metropolitan markets such as North Sydney and Parramatta are showing generally better growth than the CBDs.

"Withdrawal of older stock and migration of tenants to CBD locations will significantly offset new supply, allowing office markets to rebalance over a three-year horizon," the report says.

"Demand for space is primarily coming from small and part-floor tenants and from growth industries such as business services, health, IT, education and training and project space.

"These industries are benefiting from continued outsourcing of non-core functions by other businesses."

According to Peter Studley, DEXUS general manager, research, the office cycle in the Sydney and Melbourne CBDs has troughed and demand is improving, with both markets recording positive net absorption in the third quarter of 2014.

One property at Haymarket that is the latest to be built, is the nine-storey office building at 180 Thomas Street, (pictured) with seven out of nine floors either leased or owner-occupied.

JLL's director of leasing for Sydney, Andrew Westaway, is handling the leasing commitments for the building in an area that has a resurgence from the growth of Chinatown, One Central Park and the new Frank Gehry business building at the UTS.

Mr Westaway said one of the biggest new urban attractions for the area is The Goods Line – an elevated network commissioned by the Sydney Harbour Foreshore Authority thatis  due to be completed early next year.

Previously compared with the New York High Line, The Goods Line is a 500-metre pedestrian and cycle network connecting Railway Square through Haymarket, across to Darling Harbour's south-west corner.

"We're seeing interest from a range of occupiers, including the "TAMI" sector – technology, advertising, media and information – as well as traditional businesses," Mr Westaway said. "With the increasing gentrification of the area, Haymarket's appeal is in growth phase yet there are limited commercial opportunities both in Haymarket and across the Sydney CBD fringe market."

He said the existing occupiers include Amadeus, who took 4,040 square metres  of space across Levels 7, 8 and 9 on a 10-year lease and retail tenant Coffee Roasters, who occupies  both retail outlets on the ground floor at Shop A and B under a 10-year term.

There is also talk the internet giant Google is looking about 60,000 square metres of space around the Sydney fringe, including One Central Park or the Australian Technology Park at Redfern.