SYDNEY OFFICE UPDATE EMBRACING INVESTA
PUTTING PEOPLE AND C O L L A B O R AT I O N F I R S T AT I N V E S TA’ S N E W WORKPLACE
Heritage
SYDNEY STILL OFFERS AN ABUNDANCE OF HISTORIC OFFICE GEMS
LOCAL FIT SPOT SCENIC CYCLE MARCH 2018 | COVER PAG E 2/99 ELIZ A BET H ST REET, PAG E 59
GENSLER
H E A D S PAC E : W H E R E D O YO U F I N D YO U R S ?
OUR PEOPLE At Ray White Commercial (NSW-Sydney Office Leasing and Strata Sales) we provide office leasing and sale services in the Sydney CBD. Initially formed in 2001 we’ve built a team of real estate professionals that take pride in every transaction. Your interests are at the centre of everything we do. As part of the Ray White Group, the largest real estate group in Australasia, we have the strength and scope of an international real estate group with the local knowledge needed to deliver premium results. As an owner led business, we have a personal commitment to your success. Our Sydney team includes a team of 6 agents that focus solely on the Sydney CBD office market. Our areas of specialisation include; •
easing and sales of office space L in Sydney CBD
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Lease assignment and subleasing of surplus premises for tenants
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Sourcing office space for tenants
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roperty Management of P strata offices
ANTHO NY HARR I S
JE RE M Y PIGGIN
Director in Charge 0409 319 060 aharris@raywhite.com
Director 0413 336 161 jpiggin@raywhite.com
AND RE W TE LE P I S
CHRI S TI AN M I NARD S
Director 0415 972 696 atelepis@raywhite.com
Director 0447 777 037 cminards@raywhite.com
NAO M I VI LAR
NI CHO LAS Y EO H
Property Executive 0431 209 888 nvilar@raywhite.com
Property Executive 0415 566 541 nyeoh@raywhite.com
NI AM H D ’ARCY
D E BO RAH O UYANG
Executive Assistant (02) 9249 3768 ndarcy@raywhite.com
Team Assistant 02 9262 3700 douyang@raywhite.com
CONTENTS 01 Scenic Cycle 02 Agent Q&A - Jeremy Piggin 03 Strata Sales 04 Case Study - Multiplex 06 JHK Legal update 07 Recent Media 09 Recent listings 11 Intermain 13 Investa 15 Gensler 20 Find Your Perfect Space
KEY ECONOMIC DATA: Australian unemployment rate: 5.4% Vacancy rates for Sydney CBD: 4.6% Ray White Commercial Group Total Trading Value: $1.679m an 8% increase on last year.
SYDNEY RENTS TO HOLD FIRM IN 2018 At the end of the first quarter of 2018 it has become evident Sydney office rents should hold firm in 2018 at current record highs The Sydney CBD office market figures reported by the Property Council of Australia recorded low of 4.6% down from the December 2017 figure of 6.2%. If you take into account the continuing demand and the limited supply, it seems rents will almost certainly hold firm for the time being.
With the rise of mobile workers, growing startups and small businesses built around freelancers, flexible and coworking spaces will no doubt continue to compete with traditional office space, this is a trend that will only strengthen and creep up into the larger tenant market.
The slow tenant enquiry we witnessed from mid December 2017 until late January 2018 can be put down to the to the inevitable holiday season slowdown. After the Australia Day weekend, the demand flood gates opened and our office has been servicing strong tenant enquiry ever since.
As the pace picks up in the office market, we’re seeing tenant companies who use an external Tenant Advocate or Represented Tenants often missing out on securing office space due the the protracted processes these external consultants have in place. Sometimes going direct is the easiest and quickest way to secure a tenancy in this heavily demand driven market. As always, don’t hesitate to contact us with your brief.
There’s a trend emerging for tenants below 200m2 to favour coworking spaces, and tenants above 200m2 more focused on securing a more traditional office space. We have seen significant activity from technology tenants seeking to take up space very quickly in the the range of 500 2,000m2.
All the best,
ANTHONY HARRIS M: 0409 319 060
1 | SYDNEY OFFICE UPDATE
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SYDNEY OFFICE UPDATE | 2
AGENT PROFILE
WHO ARE YOUR CLIENTS?
LAST MAJOR TRANSACTION?
I have a mixture of institutional and private clients. Rockworth Capital, a Singaporean fund manager is one of my major clients. Anthony Harris and I are appointed as sole leasing agents on one of their Sydney assets, 50 Margaret Street, a 16 storey B-grade office tower in the CBD core. We have leased approximately 2,500sqm over the last 18 months for Rockworth in this asset.
In the last three months Anthony and I have leased four floors at 61 York St to four separate tenants totalling over 800sqm for a private building owner. We also leased over 500 sqm at 50 Margaret Street to Multiplex Construction, which is used as their site office for the Wynyard Place project on Carrington Street.
For the last two years we’ve seen
I’ve been leasing office space in the Sydney CBD for 14 years.
We also have a sole appointment on 61 York Street, Sydney. This is a 15 storey boutique building located above Wynyard train station which is owned by a private family. In the last 6 months Anthony and I have leased four floors, totalling just under 1,000sqm.
WHAT IS YOUR CURRENT ROLE?
YOUR POINT OF DIFFERENCE?
I’m the Director of Office Leasing with Ray White Commercial Office Leasing Sydney. My role involves acting for office landlords sourcing new tenants, negotiating financial terms and ensuring leases are executed. I also help tenants with their requirements in the market by finding the right property for their brief.
Having 14 years of experience leasing office space in the Sydney CBD, I have a thorough understanding of the market and the lease process for most building owners. I pride myself on building rapport with not only client/ landlords but also with tenants I’ve dealt with over the years.
• Buildings acquired by the government for the Metro Rail line
In my role it’s paramount that I maintain strong relationships with building owners and have up to date information on leasing availabilities within the CBD.
I KE E P IN TO U C H WI T H M O S T
HOW DID YOU GET STARTED?
WHAT DOES A TYPICAL DAY LOOK LIKE?
After I finished school I travelled on and off for a couple of years then completed a Diploma in Marketing at TAFE. I’ve worked in the Sydney CBD since 1999, so I know it very well. For the first 4 years I worked in the financial services industry as a stockbroker in Hunter Street. But my father and brother were in the real estate industry and convinced me to make the move. So in 2003 I joined a boutique agency at the southern end of the CBD where I cut my teeth on the commercial leasing process.
My day normally starts with rising at 6am for 20 minutes of yoga then getting my one year old son ready for daycare. I get into the office about 8am. I have a daily/weekly/monthly planner I like to stick to which outlines all the tasks and goals I set myself. However being a leasing agent in the CBD you also need to be responsive to immediate requirements from clients and tenants, which normally means meetings and inspections with limited notice. It’s important to build in some flexibility in the day.
JEREMY PIGGIN D I REC TOR, OF F I CE L EA S I N G
YEARS IN THE INDUSTRY?
TE N AN TS I D E A L WI T H A ND S O M E H AVE R E S U LT E D I N M U LT I PL E R E LO C AT I O NS OV E R T HE Y E A R S .
LOCAL MARKET TRENDS? the CBD leasing market tighten tremendously. The vacancy rate across the board is now at 4.6%, which is the lowest it’s been for over a decade. There are a number of factors contributing to this:
• Buildings acquired by local and offshore developers of residential conversation • Interest rates at an all time low • Unemployment rate of 5.5%, which is the lowest since 2013 With net effective per sqm rentals in the A/B grade space increasing 25-30% in the last 24 months, many tenants are being priced out of the market. However the necessity of having a Sydney CBD presence has lead to the rise of the co-working office space firms and serviced offices. Firms such as WeWork, Naked Hub, Stone & Chalk and Gravity are booming and are constantly looking for more space to satisfy their demand.
FAVOURITE LOCAL HAUNT? Right now my favourite haunt would have to be J&M, a whiskey and cocktail bar hidden above Angel Bar. It’s a very relaxing space and the quality of drinks and service is second to none.
3 | SYDNEY OFFICE UPDATE
SYDNEY STRATA SALES W E A R E E X C I T E D T O A N N O U N C E T H AT W E H A V E A N E W D E PA RT M E N T W H I C H C O M P L E M E N T S O F F I C E L E A S I N G S E R V I C E S . O U R N E W D E P A R T M E N T I S R AY W H I T E C O M M E R C I A L ( N S W - S Y D N E Y S T R ATA S A L E S ) . Anthony Harris is the Principal, with Christian Minards given responsibility to grow and manage the new business line. Christian is supported by Nicholas Yeoh in his role as sales support and property analyst. Essentially the new strata sales department is a formalisation of the past two years of several and successful strata office sales, most recently when Christian and Nicholas listed and sold level 1, 16 O’Connell Street, Sydney for $3,050,000, being
S
$11,466.15psm, a building record. Same can be said when they listed and sold suite 1101, 84 Pitt Street, Sydney. This suite was situated at the front of the building and being 161 sqm, Christian and Nicholas negotiated a price of $1,800,000 or $11,180psm another building record. In terms of market conditions, the strata office market over the past two years has had no new additional supply by way of new projects. Demand is a very different story.
Our research indicates year on year price growth of 30% for FY15/16 to FY 16/17. Investors and owner occupiers alike are chasing a very limited pool of available stock for sale. This is evident with investors securing new investment opportunities on sub 5.00% net yields and owner occupiers acquiring new premises (within CBD core precinct) between $12,000 $14,000 and above. Is it time to find out what your strata suite is worth? Is it time to sell and want to be sure of achieving the best price? If so, please contact Christian Minards or Nicholas Yeoh.
C H R IS T IA N M IN A R D S
NI CHO LAS Y EO H
ANTHO NY HARR I S
Director 0447 777 037 cminards@raywhite.com
Property Executive 0415 566 541 nyeoh@raywhite.com
Director in Charge 0409 319 060 aharris@raywhite.com
D OL
S
D OL
SAL R FO
E
L E VE L 1 , 1 6 O ’ CO N N EL L S TR E E T, SY DN EY
S UIT E 1101, 8 4 P I TT S TRE E T, SY D N EY
LE VE L 5 , 16 O ’ CO NNE LL S TRE E T, SY D NE Y
$3,050,000
$1,800,000
$12,500 psm
(Rental Guarantee of $800 psm)
SYDNEY OFFICE UPDATE | 4
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5 | SYDNEY OFFICE UPDATE
CASE STUDY DIRECT LEASE – Part Level 4, 50 Margaret Street LANDLORD – Rockworth Capital Partners TENANT – Multiplex Construction AREA – 500.9 sqm W HO IS THE LANDLORD?
WHERE IS THE PROPERTY?
Rockworth Capital Partners is a real estate asset and investment management firm with offices in Singapore and Australia. Founded in 2011, they specialises in the retail and office sectors. They currently have over AU$700m in assets under management across their core markets.
The property is Part Level 4 at 50 Margaret Street, Sydney. The space overlooks Wynyard Park and Carrington Place and perfectly situated just across the road from Multiplex’s current construction site at Wynyard Place. There was an existing fitout in place, in the B-Grade building, with upgraded end of trip facilities. Naturally, the proximity to the site was a very attractive feature for the tenant. Wynyard Place is set to be a new place to work, play and commute in the city, with retail, dining, work spaces and a public transport hub all incorporated in the precinct.
W HO IS THE TENANT? For over 55 years, Multiplex has been delivering landmark property and infrastructure projects across the world in Australia, the Middle East and Asia, Europe and Canada. Their work has encompassed more than 1,000 projects with a combined value of US$66.2 billion and projects are completed across the residential, health, retail, commercial, tourism, education, engineering and infrastructure sectors. Their delivery of end-to-end and construction solutions across all these sectors is second to none, and they’re committed to creating structures that will endure the test of time - using sustainable design and construction techniques.
THE TRANSACTION
The key driver for Multiplex was that Part Level 4, 50 Margaret Street overlooks Carrington Street and is a short walk to the Wynyard Place project. Ray White Commercial are the appointed agents on 50 Margaret Street and were able to bring both parties together swiftly to agree terms on a four year lease. 50 Margaret Street was upgraded in 2017 with new end of trip facilities and lobby cosmetic changes were made, along with a new café opening in the space. The Part Level 4 space had an existing fitout which Multiplex was we able to utilise with minimal changes needed before the team moved in. The face rent per sqm was agreed in the mid-$900’s.
Multiplex Constructions engaged Ray White Commercial to source approximately 500sqm to use for as a site office and administration space for its Wynyard Place project construction team. As mentioned above, the construction site is located opposite 50 Margaret Street on Carrington Street, Sydney.
T A K E A L O O K A T M U L T I P L E X ’ S D E V E L O P M E N T A T W Y N Y A R D P L A C E wynyardplace.com.au
SYDNEY OFFICE UPDATE | 6
PERMITTED USE CLAUSES IN COMMERCIAL LEASES BY JHK LEGAL I N COL L ABORATION WITH R AY W HITE CO MME RC IA L IF YOU ARE ENTERING N E G O T I AT I O N S F O R A N E W COMMERCIAL LEASE, ONE M A J O R C O N S I D E R AT I O N YO U W I L L H AV E TO M A K E IS CLASSIFYING THE PERMITTED USE OF YOUR PREMISES.
DO YOU HAVE PERMISSION? When entering a lease, a tenant usually has an idea of the purpose for which they will be using the premises. Even when this is conveyed during negotiations, it does not always lead to the lease reflecting the appropriate ‘permitted use’.
THE IMPORTANCE OF THE SCOPE OF PERMITTED USE The permitted use clause within a lease is an important term that parties must consider in balancing competing interests. For landlords, it is necessary to have boundaries on the kinds of activities permitted under the lease. Specifically in multi-tenanted spaces, it might not be suitable to have a high end financial planning firm next to a McDonalds. A well-drafted permitted use clause provides a landlord with some control over the tenants and use of the premises.
Balancing the landlord’s needs, a tenant does not want a permitted use clause which is too restrictive. A tenant needs the permitted use to be wide enough to allow its business to grow in an evolving market.
ASSIGNING A COMMERCIAL LEASE The permitted use also affects assignment of the lease down the track if a tenant were to decide to sell its business or leave the premises before the lease expires. A landlord is usually entitled to refuse consent to an assignment of lease if the new tenant plans to change the use of the premises to a non-permitted use. This is challenging when the proposed tenant operates a similar but not identical business to a pre-existing tenant.
DIFFERENCE BETWEEN A PERMITTED USE AND EXCLUSIVE USE Closely connected to permitted use clauses, an exclusive use clause allows a tenant the exclusive right to sell a particular type of goods. Landlords will need to be mindful that if an exclusive use clause is granted, future tenants permitted use clauses cannot contain uses that infringe on that exclusive use.
HOW TO APPROACH DECIDING ON PERMITTED USE Courts have taken a conservative approach to permitted use clauses. Where services are outside the scope of the permitted clause in the lease, tenants will require the Landlord’s express permission, which there is no obligation to provide. The long term goals of the tenant should be considered when deciding on permitted use. It may be suitable to request a clause which allows the tenant to change the permitted use with landlord’s consent, and an obligation on the landlord to act reasonably in relation to a proposed change.
Contact us at JHK Legal. 02 8239 9600 or visit JHKlegal.com.au
7 | SYDNEY OFFICE UPDATE
RECENT MEDIA SUMMARY COMMERCIAL RESEARCH: SYDNEY CBD OFFICE MARKET UPDATE FEBRUARY 2018 • • •
Net absorption of just 345sqm recorded the six months to January 2018 This stock level change has seen vacancy continue to compress to a low of 4.6% Even the smaller strata market has benefitted with capital values over 25% up on 2016 results
Image and article source: Ray White Commercial Research
PROPERTY STOCKS A MODEST BUFFER AMID STOCKMARKET ROUT • • •
Some listed property trusts fell while other stocks remained safe The S&P/ASX 200 index decreased by 3.2% while the S&P/ASX 200 AREIT index dropped 2.58% Charter Hall dropped 5.42% while Abacus fell 4.2% and Mirvac decreased by 3.4%
Image source: Peter Braig Article source: Australian Financial Review
COMMERCIAL PROPERTY INVESTMENTS SET TO DECLINE SHARPLY OVER NEXT FIVE YEARS: BIS • •
BIS forecasts commercial property to fall in the next 5 years as interest rates rise From 2018-2022, the total returns for the year on Sydney prime office spaces are predicted to drop from an average of 15.2 percent to 12.4 percent.
Image source: Paul Rovere Article source: Australian Financial Review
BLACKSTONE SET TO DOUBLE MONEY IN FOUR YEARS ON WESTPAC SYDNEY HEADQUARTERS •
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In a deal that could result in more than $800 million, Blackstone is selling its half share in Westpac’s Sydney office headquarters The group originally acquired the building at 275 Kent Street in 2014 for $435 million
Image source: Louise Kennerley Article source: Australian Financial Review
SYDNEY OFFICE UPDATE | 8
RECENT MEDIA SUMMARY AUSTRALIAN OFFICE VACANCIES DECREASE AS ECONOMIES STRENGTHEN •
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This is particularly true for the markets of Sydney and Melbourne with an extremely low vacancy rate of about 4.6 percent according to Property Council of Australia data Nationally, the vacancy fell from 10.2 percent to 9.6 percent from mid 2017 to January 2018.
Image source: Ryan Stuart Article source: Australian Financial Review
YUHU GROUP BUYS DALIAN WANDA’S AUSTRALIAN ASSETS FOR $1.13 BILLION • •
This includes Sydney and Gold Coast residential and hotel mixed-use projects The purchase price of these two developments includes a $315 million cash component with a debt owed to Dalian Wanda of $815 million
Image source: Supplied Article source: Australian Financial Review
NSW DOMINATED COMMERCIAL SALES VOLUMES IN 2017 DESPITE OFFICE ‘SQUEEZE’ •
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Commercial sales in NSW is expected to continue to grow in the next three months despite a predicted slowdown in Australia’s general property market in 2018 The office market across New South Wales, especially in Sydney, has experienced a recent increase due to developments such as the Sydney metro line
Image and article source: The Urban Developer
CHINA’S HNA SELLS SYDNEY BUILDING FOR $205M AMID CASH CRUNCH • •
The sale is amidst HNA’s fi_nancing strains after a $50 billion acquisition spree in the last two years HNA has not identified the buyer, however, sources suggest that it was a unit of U.S.-based private equity firm Blackstone Group
Image source: Sydney Morning Herald Article source: Australian Financial Review
9 | SYDNEY OFFICE UPDATE
RECENT LISTINGS AGENT: ANTHONY HARRIS
2, 99 ELIZABETH STREET •
Part level 2 is 75m2 self contained office space
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Access to boardrooms, break out rooms and kitchens
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Rental charges based on 120m2 to factor shared areas
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12 workstations and chairs, private glass office
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Access and use of Work Club facilities on level 8
Area: 120 m2. Price: $1,100 psm pa gross
AGENT: ANTHONY HARRIS
SUITE 5.06, 83 YORK STREET •
Short leases available, 2 year preference
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Open office work space, 1 boardroom training room
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2 offices, reception, tea and server room
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A short walk from the Queen Victoria Building
Area: 167 m2. Price: $450 psm pa gross
AGENT: ANTHONY HARRIS
SUITE 7.01, 62 PITT STREET •
Existing fit out in place, glass offices, boardroom
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Sunny aspect over Pitt Street
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Brand new end of trip in basement
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Available May 2018
Area: 123 m2. Price: $985 psm pa gross
AGENT: NAOMI VILAR
SUITE 2, BASEMENT 27 PARK STREET •
Open plan room ideal for medical or fitness
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Use of reception ,storage and change room, showers
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Direct street access & potential street signage
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Shared space with F45 & Physio
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Available now
Area: 148 m2. Price: $695 psm pa gross
SYDNEY OFFICE UPDATE | 10
AGENT: NAOMI VILAR
LOWER GROUND, 27 MACQUARIE PLACE •
Currently yoga studio but suitable for other uses including office
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Direct lift access, secure floor, street signage
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Potential for medical or health, gym or retail
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Sub lease or assign to 31 March 2020
Area: 197 m2. Price: $590 psm pa gross
AGENT: ANTHONY HARRIS
SUITE 9.03, 31 MARKET STREET •
Sub lease or assign lease to 6 May 2020
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Fully fitted with boardroom, 2 offices, 6 workstations and storage
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Direct lift exposure, North East corner
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Existing power and data cabling in place
Area: 93 m2. Price: $825 psm pa gross
AGENT: ANTHONY HARRIS
1.08 & 1.09, 55 MILLER STREET •
Flooded with natural light & floor to Ceiling windows
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Private bathrooms with 1 shower
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1 car space available at additional cost
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Located between Circular Quay & Martin Place
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Open plan layout but ability to build meeting rooms
Area: 157 m2. Price: $585 psm pa gross
AGENT: NAOMI VILAR
SUITE 25.05, 31 MARKET STREET •
Assign or sub lease to Dec 2019
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Existing fit out in place
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Power and data cabling in place
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Vacant on approx 60 days notice
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Rare chance to secure a small suite
Area: 62 m2. Price: $925 psm pa gross
11 | SYDNEY OFFICE UPDATE
EMBRACING HERITAGE
BY ANDREW JOHNSON MANAGING DIRECTOR INTERMAIN In Collaboration with Ray White Commercial
Despite significant redevelopment, Sydney still offers an abundance of historic office gems that when sensitively managed, offer companies an address with character and cachet, whilst also supporting the needs of today’s workplace. In the late 19th Century, Sydney was so abundant with sandstone buildings, it was often referred to as the ‘golden city’. Thankfully, conservationists have protected many of these and other historic addresses from redevelopment, to maintain some of the city’s important heritage and give it the architectural diversity it enjoys today.
Many companies flock to reinvigorated historic buildings and precincts to create offices of distinction, as seen in the newly revitalised Walsh Bay Finger Wharf precinct recently and will no doubt occur when the regenerated Australian Technology Park in Everleigh is unveiled in a few years’ time.
Whilst heritage office spaces can be successfully converted to support today’s workplace demands, they require clever and sensitive execution. At Intermain, we advise our clients of the following principals to ensure a successful outcome.
1. ALLOW SUFFICIENT TIME
– it is critical that a project allows enough time to manage the additional approval hurdles of fitting out an office in a heritage building. Typically, if a building is State Heritage Listed, all work requires joint approval by the Office of Environment and Heritage as well as the relevant local council.
SYDNEY OFFICE UPDATE | 12
As part of this process, documentation such as a Statement of Heritage Impact will need to be prepared by a Heritage Consultant, which details the impact the works will have on the existing historical fabric of the building. Further, final inspections will need to be conducted by the council’s specialist heritage officer before the space can be occupied. Working with an experienced delivery partner will see this process managed seamlessly and swiftly, but rushing this process can attract significant risk.
2. EXCELLENT COLLABORATION IS CRITICAL – designing your
workplace in a valuable heritage asset will often require close collaboration between your delivery partner and a qualified heritage consultant or architect to ensure your project meets conditions of consent and achieves the best outcomes for your workplace. At Intermain, we believe that working together as a close team, with excellent communication and free sharing of ideas, always yields superior results.
3. FOSTER INNOVATION – 19th
century challenges often require a 21st century solution. And whilst there are a number of tried and tested methods to working in heritage spaces, we also like to take a nimble approach to heritage design challenges. A recent example was the fit-out of the buyers’ area and pearl detailing room for Paspaley Pearling Company in Martin Place, Sydney. The framework for this project, provided by the National Heritage Board, called for a complex series of joinery elements to be carefully placed and not fixed. Our solution included securing these items using structural Velcro, which delivered a robust result whilst satisfying the strict conditions of consent.
This may include scouring suppliers to match original tiles, stone and heritage finishes. Careful execution is especially important when restoration work is required to revitalise architectural elements such as elaborate cornicing or items of historical note such as original lift cages or bank vault doors.
5. CELEBRATE THE HISTORY
– smart design will achieve the requirements of the contemporary office whilst maximising the character and appeal of the heritage location. The key is embracing a building’s history and sometimes quirky layouts to deliver a truly unique and uplifting office space that will help distinguish your corporate headquarters from the pack.
4. APPROACH WITH CARE AND ATTENTION TO DETAIL – a heavy-
handed approach won’t work in a heritage space. Highly detailed finishes are key to a great outcome to ensure that office design is sympathetic to the surrounding building fabric.
“Managing risk and accelerating program were top priorities, when PDS Group partnered with Intermain to deliver striking new offices in a Sydney heritage building. Critical to the success of the project was a proactive and consultative approach to stakeholder management as well as strong collaboration with project consultants including Medlands Engineering, Woods Bagot Architects and Nimbus Heritage Consultants. Regular site meetings between the parties meant that smart solutions could be developed quickly to address and resolve any issues inherent to a heritage building”.
Andrew Johnson is Managing Director of Intermain, an established multi-skilled commercial fitout company focussed on excellent customer service and high quality building standards across building refurbishment, design and construct for corporate offices, ‘make-goods’, retail and hospitality. Intermain works nationally from offices in Sydney, Melbourne and Brisbane and operates a state-of-the-art joinery workshop from their Alexandria Headquarters.. Visit intermain.com. au for more details.
13 | SYDNEY OFFICE UPDATE
PUTTING PEOPLE AND COLLABORATION FIRST AT INVESTA’S NEW WORKPLACE I N V E S TA R E C E N T LY O P E N E D I T S NEW WORKPLACE AND HEAD OFFICE AT 4 2 0 G E O R G E S T R E E T, S Y D N E Y, I N C O R P O R AT I N G O V E R 1 , 7 0 0 M 2 O N L E V E L 3 1 A N D PA RT L E V E L 3 0 . T H E S PAC E I S A CONTEMPORARY REFLECTION OF THE FIRM’S RENEWED VISION AND BRAND, W I T H S TA F F D R I V I N G T H E M O V E TO E V E N G R E AT E R W O R K P L A C E C O L L A B O R AT I O N , FLEXIBILITY AND AGILITY IN THE FUTURE. The new space, designed by Hassell, provides expansive views over Darling Harbour and the CBD, abundant natural light and a column free floor plate. 420 George Street is owned by Investa Commercial Property Fund (75%) and Mercer Super Trust (25%). Relocating from 126 Phillip Street, Sydney, Investa has secured a 10-year lease at the prominent A-grade asset. Jonathan Callaghan, CEO Investa said: “Our workplace has been designed by our people, with the diverse and unique needs of our team at the heart of the process.
Thorough research was conducted at the outset to understand how our people are working now, and to identify what facilities, spaces, technologies and behaviours would support their best work in the future. “We found that more than half of the work our people do is collaborative, half of individual work is highly focused and despite different teams working on different aspects of the business, there was a consistent range of working styles. Given this, our key priority was to ensure our new workplace delivered a diversity of spaces where
people could choose how they work, depending on the type of activity they are doing.” Investa’s new workplace has the majority of workspaces unassigned, with small neighbourhoods and collaboration areas allocated to different departments to enable flexibility, while maintaining team cohesion. Amy Wild, General Manager, People and Culture said: “Our new workplace better supports and reflects our open, transparent and collaborative culture. It is a beautifully designed, functional, light-filled space that we know our people will love coming to work in each day. “ E V E RYO N E B E LO N G S TO A NEIGHBOURHOOD AND T H E R E I S A VA R I E T Y O F S PA C E S TO S U I T T H E F U L L SPECTRUM OF WORK, H E L P I N G S TA F F T O F O C U S , C O L L A B O R AT E , M E E T A N D RELAX.
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We have invested in market leading technology to ensure diverse teams can connect and work together easily and have a number of team tables and booths throughout the space, to enable easy interaction, in addition to regular meeting spaces. “The best views in the house are available to our staff at any time in our social hub and meals area on level 31, which has a double height glass wall and expansive CBD views.” said Ms Wild. Investa’s new workplace was also designed with a clear focus on reducing Investa’s environmental footprint, in line with its strategic target of net zero carbon emissions by 2040, across its portfolio and business operations. Nina James, General Manager, Corporate Sustainability said: “Building on our expertise in reducing building carbon emissions, we set strong emission reduction targets for our new fit-out.
By selecting materials which are easily recycled and repurposing furniture and mechanical elements, we were able to reduce the total carbon footprint by more than 12%. This experience further enhances our ability to guide tenants through their own low carbon fitout.” 420 George Street is in the retail and transport hub of the CBD, adjacent to the new light rail and rejuvenated George Street precinct. The location offers extensive surrounding amenities for Investa staff, including prime retail and entertainment venues and is walking distance to train, bus and ferry transport. Mr Callaghan said: “This new workplace is truly transformational for our business. It will cultivate our identity as a progressive market leader that outperforms in customer experience.
It will stimulate innovation capability, creative thinking and new ways of problem solving through closer collaboration and connection, both physically and via technology, and build on Investa’s identity as a thought leader, who values relationships and is committed to fostering our culture of respect, openness and approachability. “ I T I S A W O R K P L A C E T H AT W I L L T R U LY B R I N G O U R O R G A N I S AT I O N T O G E T H E R AND ALIGN US BEHIND OUR COMMON PURPOSE OF ENABLING AUSTRALIAN W O R K L I F E T O T H R I V E ,” said Mr Callaghan.
15 | SYDNEY OFFICE UPDATE
HEADSPACE: WHERE DO YOU FIND YOURS?
Microsoft London, Image © Hufton and Crow
BY One of the more popular words that characterise growth in the ten years since the 2008 recession is innovation! The word is all around us. It is used in every industry from automotive, technology and media, to consumer goods, healthcare, government and non-profit. It’s not just an ordinary word, but a value that we identify as cutting edge, disruptive or rebellious, and it’s often demonstrated through a positive benefit, product, service or experience. A typical Google search on ‘what is innovation’ will give you about 92,000,000 results. According to the Harvard Business Review, establishing a sharp, shared definition of innovation with comprehensive innovation metrics can take months for any company.
WHAT E NABLES INNOVATION?
People, creativity and a plethora of other factors play into innovation. As curious designers, we are interested in what makes people and organisations tick and take-off, and the space where it happens.
Enter the World Economic Forum’s forecast of the 10 skills required for 2020. While we can debate which of the lot are best attributed towards innovation, what sticks out to us is creativity. Especially when comparing with the top ten skillsets for 2015, creativity jumped from number 10 to number 3, a bronze medal nonetheless! While listed as a ‘skill’ the WEF classifies it as an ‘ability.’ Creativity is a process that inspires and nurtures exploration, dreaming, trying and failing. Creativity does not just happen on its own, but requires strong organisational commitment with everyone on-board. Convincing everyone is often the hardest part.
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ENABLING CREATIVITY IN YOUR ORGANIZATION
In his book, “Too Fast to Think,” Chris Lewis sets out a creative cycle with the four I’s of ‘Induction, Incubation, Inspiration and Ignition in the ratios of 40/30/20/10, with 70 percent of creative thinking occurring before you realize you have an idea.’ In reality we need time and quiet ‘headspace’ between each of these phases for ideas to mature before they take off. Lewis further highlights the “Eight Creative Traits of Quiet, Engage, Dream, Relax, Release, Repeat, Play and Teach.” An organisation needs any to all combination of these traits to enable a successful creative process. Of the traits, depending on the organisation, they could be divided 50/50 between individual-based activities or traits associated with a group or team. The time required and the space where sparks fly matter. Most offices tend to lack a proper amount of quiet space to focus and clear your head, as well as shared social spaces to release, play and teach. In the Gensler 2016 UK Workplace Survey we found that while most of the UK workforce operate in an open-plan environment, most of the ‘have-nots’ (non-senior staff) in the workforce do not have a choice in their work settings. Most do not have access to a quiet space or alternative work setting.
This means 89 percent of those in senior leadership positions have access to a shared private office or space, whereas only 23 percent at lower levels of the organisation had the same access. Could lack of choice and access to quiet, focus-oriented space stifle career trajectory, especially those in a creative industry or role?
CREATIVITY BEYOND THE OFFICE
Some of the more individual-based activities like dreaming, relaxing, inspiration and engaging ideas don’t always happen in the office, nor should they! They can happen at the kitchen table, when you first wake up, on the airplane, in the park, in the shower, walking through the city, the pub, on the tube, the bus, cycling, after you read a story to your child…you get the point. Wherever you have your ‘aha moment’ or napkin sketch, it always comes back to the office for ignition, and to play it out with others. WHILE THE BOUNDARY OF THE OFFICE IS BECOMING BLURRED EVEN FURTHER, THE OFFICE CANNOT ENABLE CREATIVITY ON ITS OWN WITHOUT AN ORGANISATIONAL PROCESS TO SUPPORT IT. But what the office could do is support the process through choice in work environments that create a physiological extension to location and destination-making within ‘the office.’
This can be done by creating unique atmospheres both inside and outside the traditional boundary of the office, even extending to ‘satellite’ spaces. In the past 10 years, we have seen the resurgence of ‘garage spaces’ in corporate campuses to urban office spaces, co-working hubs and co-share maker spaces, in nearly all industries, from financial services to consumer goods. These uninhibited spaces with little digital noise or expensive finishes are often just raw space. While there is nostalgia of this space type reflecting early pioneer start-ups, the visual and physiological experience of a raw, imperfect and messy space often reflects, and is conducive to the individual and collaborative process (and bumps) in the creative journey. In a world where the fourth industrial revolution threatens to remove 40 percent of task-driven jobs through the proliferation of automation (for example, 38 percent of U.S. jobs could be wiped out by 2030) as previously monotonous task work will be done by computers and robotics, human ingenuity through creativity will continue to discover and create whole new industries, products and services in the decades to come. Fear not! “Creativity is contagious,” said Albert Einstein, which is why we are addicted to the creative journey and the unexpected twists, turns and discoveries we make along the way with each space we create. We believe the future is much brighter than we would like to admit. Certainly, with a little oomph of creativity and changes to the space we live and work in, we can design our way out of the uncertainty of now. This article originally appeared at GenslerOn.com/work
Aon London, Image © Tim Soar
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FEBRUARY TRANSACTIONS AGENT: JEREMY PIGGIN
11, 61 YORK STREET Playground XYZ undertook an extensive market search trying to find a whole floor in a boutique building and found great space at level 11 / 61 York Street Sydney. Playground XYZ build custom mobile ad formats. They have secured a 4 year lease on 208m2 paying a rental of $830 psm gross Area: 208 m2. Price: $830 psm pa gross Agent: Jeremy Piggin
AGENT: ANTHONY HARRIS
LEVEL 1, 1 BARRACK STREET Katana 1 are a leading data storage and analytics company with a focus on automation. Character space is hard to find in the CBD but 1 Barrack Street ticked all the boxes with high ceilings and timber floors in a heritage terrace style building. K1 leased 199m2 on a 4 year deal at $715 psm gross Area: 199.6 m2. Price: $715 psm pa gross Agent: Anthony Harris
AGENT: ANTHONY HARRIS
1, 89 YORK STREET CUSCAL say “ our business is payments” They manage over 7 million credit, debit and prepaid cards on behalf of our 80+ clients. Services include fraud monitoring, card production and maintenance, scheme sponsorship and BIN management. CUSCAL took a 4 year lease on a whole floor Area: 516 m2. Price: $800-$900 psm pa gross Agent: Anthony Harris
AGENT: ANTHONY HARRIS
3, 65 YORK STREET Established in 1978 and after being at 9 Barrack Street for 21 years legal firm Boyd House and Partners have moved across the road to 65 York Street taking semi serviced office space with Clarence Street Professional Offices on level 3.Boyd House & Partners took a 3 year deal. Area: 200 m2. Price: $850 - $950 psm pa gross Agent: Anthony Harris
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RECENT TRANSACTIONS Add re s s
Are a ( Sq m)
Leas e St art Date
Term ( Years)
Gro s s Rent (Ps m)
Les s ee
2/86 Liverpool Street
151
Jan 2018
3
$630
Mad Clarity
Level 11, 61 York Street
208.3
April 2018
4
$830
Playground XYZ
Lot 2, Level 3, 65 York Street Level 1, 89 York Street
200
Feb 2018
3
$850 -950
Boyd House & Partners
516
Jan 2018
3
$800-$900
CUSCAL
5.09/155 King Street
29
Jan 2018
4
$1000
Dr Waring
Level 13, 61 York Street
208.6
Feb 2018
2
$830
Capsifi
502/66 Clarence Street
286.2
Dec 2017
4
$775
Cashwerkz
301/25 Lime Street
165
Oct 2017
3
$820
10,000 Hours
801/16 O’Connell Street
130
Feb 2018
2
$795
Indigo
Level 5 27 Macquarie Place
228
Sept 2017
5
$895
Stewart Partners
801 - 66 Clarence Street
527.2
Nov 2017
3
$850
Xero
Mezz Gallery - 27 Macquarie Place
179
Oct 2017
5
$775
Pac Partners
Suite 7.04/66 King Street
76
Nov 2017
0.5
$500
Currie & Brown
Level 7/104 Bathurst
214
Oct 2017
3
$467.29
The Hunger Project
901, 66 Clarence Street
402.6
April 2017
6
$850
OBrien Palmer
GF 100 Harris St, Pyrmont
1625
June 2017
2
$600-$700
IPMG
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TENANT REP BRIEF TABLE Te na nt Na m e
Are a ( Sq m)
Ti mi n g
Lo c at i o n
Co mment s
Wesfarmers
300-350
July 2018
CBD
Knowmore
450-700
April 2018
CBD
5 years + 5 year option single floor 3-5 years with EOT
Confidential Client
400-700
Q2 2018
CBD
3-5 years
InfoTrack
750-1000
March 2018
CBD
2 years only
XenithIP
1200-1700
June 2018
CBD
6 years with option
Smart Sparrow
450-500
April 2018
CBD
3 years with 3 year option
Bullhorn
250-350
Q3 2018
CBD
3 years with 3 year option
Rakuten Marketing
350-500
Q3 2018
CBD
3 years with 3 year option
KOI
1500-2500
Q4 2018
CBD
Advisory & Transaction Services Thomas Davis and Co.
400-450
NOW
200-250
Oct 2018
CBD & Fringe CBD
Initial term of 5 – 10 years subject to suitability 3 to 5 years + option Quality fitted 5 years plus options
Icon Co
800-1000
Q4 2018
CBD Fringe
5 years + option
Sephora
450-650
Oct 2018
CBD
3 year term, Fitted and open plan
Grrenbox Architecture
300- 350
May 2018
CBD
Sapere Research Group
350
Oct 2018
CBD
3-5 years, fitted or unfitted,
Mizuho Bank Ltd Sydney Branch
2300-2600
Q4 2019
CBD
8-10 year term + option,
SYDNEY OFFICE UPDATE | 20
L E VE L 7 - 6 2 P I TT ST R EET SY D N EY
94 BEAT T I E ST R EET BA L MA I N
FIND YOUR PERFECT SPACE
1 31 MACQUA RI E STR EET
CENTRAL LOCATIONS, CITY VIEWS
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OUR OFFICES 48
O F F ICES AC R OS S AU ST R AL I A, N EW Z EA L AN D, C H I N A AN D HON G KO N G
F R O M H U M B LE B EGINNINGS IN 1902 IN T H E S M A LL Q U E E NS L A ND CO U NT R Y TOWN O F C R OW S NE S T, R AY WH IT E H A S NOW B ECO M E A H O U S E H O LD NA M E CO NNEC T E D TO T H E P R O P E R T Y A ND R E A L E S TAT E IND U S T R Y, H O M E LOA NS A ND INS U R A NC E, WIT H A N A NNUA L T U R NOV E R IN E XC E S S O F $40 B ILLIO N.
NT O FF IC E
23
Q LD O FF IC E S
WA OFFICE
SA O F F IC E
I N T E RNAT I O NAL O F F ICES I N: N E W ZEAL AND H ONG KONG CH INA
14
NS W O FF IC E S
Ray White was awarded the Family Business Award at the 2015 EY Entrepreneur Of The Year Awards. Recognising three generations of business, the EY Awards are considered the most prestigious business awards globally. In 2016, Ray White won the Major Network of the Year Award at the Real Estate Business Award at the Real Estate Business Awards, the real estate industry’s premier awards, open to every professional and real estate group in the industry.
4
V IC O FF IC E S
O FFI C E
CON TACT
O F F IC E
CO NTAC T
Ray White Advisory
(02) 9262 3700
Ray White Commercial (Parramatta)
(02) 92493725
Ray White Business Sales (Sydney CBD)
(1800) 858 696
Ray White Commercial (Pine Rivers)
(07) 3889 8000
Ray White Commercial (Adelaide Asset Management)
(08) 7228 5600
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(07) 3231 2211
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(07) 3245 7199
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(07) 5528 8878
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23761088
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(07) 3282 9655
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(02) 4974 3011
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(07) 3046 4300
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(07) 5474 7600
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(07) 5555 8600
Ray White Commercial (North Coast Central)
1300 25 50 75
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(07) 3807 0001
Ray White Commercial (NSW Greater Sydney South)
02) 9099 1128
Ray White Industrial (Milton)
(07) 3331 5444
Ray White Commercial (NSW)
(02) 9262 3700
Ray White Projects (NSW)
02 9262 3700
Ray White Commercial (NSW-Sydney City Fringe)
(02) 9660 1717
Ray White Retail (Sydney)
(02) 9249 3753
Ray White Commercial (NT)
(08) 8943 3500
Ray White Special Projects (Queensland)
(07) 3231 2241
Ray White Commercial (Oakleigh)
(03) 9568 2000
Ray White Tsim Sha Tsui: Hong Kong
23761088
Ray White Commercial (Office Leasing - Sydney)
(02) 9249 3709
71 | SYDNEY OFFICE UPDATE
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