Newcastle's apartment boom is transforming into a splurge on office space.
Accounting and financial services firm Cutcher & Neale has lodged plans with City of Newcastle for a new four-storey office building on the corner of Parry and Steel streets in Newcastle West.
The development application shows the $7.8 million building will include 3000 square metres of commercial space and ground-floor parking on a triangular site next to Marketown.
The Newcastle Herald reported in February that the vacancy rate of A-grade office space was just 2.8 per cent in 2018, down from 6.4 per cent the year before.
Cutcher & Neale, which is based in Bolton Street, said its 90 staff would occupy two floors of the building, leaving one floor to be leased out.
Partner Ian Neale said the company was after more modern premises in an area of the city with "slightly better" parking and traffic.
He said the firm was due to complete the purchase of the land on Friday.
The scarcity of high-grade offices has coincided with the arrival of several big commercial projects in the city, including Doma Group's 12-storey, 16,600-square metre building under construction in Hannell Street and another 2000 square metres in its Crossing development in Merewether Street.
Other big office projects under construction include the Birdwood Business Centre in Hunter Street (11,000 square metres) and the Gateway 2 building in Stewart Avenue (9000 square metres).
Developer GWH has submitted an application for an eight-storey, 8000-square metre office building partly on former rail corridor land in Hunter Street.
Meanwhile, Compass Housing has lodged a DA for an eight-storey affordable housing block in Station Street, Wickham.
Compass is partnering with Newcastle council to finance the 16-unit development.