Does the closure of Mary’s Underground signal a changing Sydney or something more dire?

Over seven years, Mary’s Underground has sold more than 150,000 tickets to 1000 shows, staged by 3000 artists, all in its famed Circular Quay basement. But on Friday, the team behind the popular live music venue announced that it would close due to financial reasons.

“Seven years ago we signed a lease on 7 Macquarie Place, more famously known as ‘The Basement’,” the statement on Mary’s website reads. “We had big plans.”

The vision was to have a burger joint with free live jazz downstairs. Over the years it has hosted musical heavyweights including B. B. King and Prince.

“It will come as no surprise that this is ultimately due to financial reasons and the many headwinds the live music industry currently faces, especially for venues under 500 capacity,” the statement continues. “Declining bar sales, coupled with increasing costs and sky-high Sydney land values does not make a recipe for success.”

But the demise of a Sydney live music institution in the CBD might not solely signal a grim future for the city’s nightlife. For Joe Hardy, the co-founder of non-profit gig guide SydneyMusic.net, the closure of Mary’s reflects how revellers’ behaviours – and where they want to access nightlife – have changed.

“It was a challenging location … because there’s not a lot happening in that area that really sort of gels with what they’re about,” said Hardy, referring to Mary’s punk and heavy metal scene.

“Historically speaking, the entire stretch from the Opera House through to City Recital Hall should have heaps of supporting infrastructure, just around the sorts of things that live music-goers would love to be attending.”

Hardy said Sydney’s CBD had shifted to primarily servicing office workers and had lost grungier venues – particularly after the closure of Swillhouse’s Frankie’s Pizza – which have moved towards other precincts in the city and inner-west.

“Doesn’t feel like it’s as multifaceted as it used to be, but a place like Mary’s – the rich history of The Basement was just incredible, and it’s clear that there used to be a lot of demand for that in the area. It just feels like the location has changed a lot.

“You can’t really have a venue that just exists in a vacuum. You want it to be surrounded by spaces that people want to hang out in, and it’s not necessarily just about spending. You want environments that feel like there is something before and after the show that can be part of your night out,” he said.

Minister for Music and the Night-time Economy John Graham said Mary’s provided some of the best live music experiences in Australia.

“This closure demonstrates the intense cost pressures on live music venues in NSW, which is why the government is so focused on cutting red tape and boosting our nightlife precincts,” he said.

Hardy said Mary’s closure raises fears about which venue is next. “There’s a lot of shock in the community … the existential fear [about who is next] is something that is generally felt.”

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