25 BLIGH STREET
SYDNEY OFFICE UPDATE
THE WELL OFFICE WORKPL ACES T H AT F O S T E R S TA F F W E L L B E I N G
ADAPTING TO HIGHER OFFICE RENTS: WHAT YOU NEED TO KNOW
BACCO
AN ‘EVERY THING FOR EVERY HOUR’ KIND OF PLACE
2 | SYDNEY OFFICE UPDATE
OUR PEOPLE
WE BEGAN RAY WHITE COMMERCIAL (OFFICE LEASING) SYDNEY IN 2001 TO HELP OWNERS AND TENANTS FIND THE RIGHT PROPERTY FOR THEIR BUSINESS. We’ve built a team of professional real estate agents who put your interests 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 business, with the local knowledge needed to deliver premium results. Being owner-led, we have a personal commitment to your success. Our Sydney Office Leasing team has seven leasing agents working solely on the Sydney CBD office market. We specialise in: easing and sales of office space L in Sydney CBD ease assignment and L subleasing of surplus premises for tenants Sourcing office space for tenants roperty Management of strata P offices
(02) 9249 3709
ANTHONY HARRIS
JEREMY PIGGIN
Director in Charge 0409 319 060 aharris@raywhite.com
Director 0413 336 161 jpiggin@raywhite.com
JONATHAN LAVERTY
ANDREW TELEPIS
Consultant 0413 583 338 jlaverty@raywhite.com
Director 0415 972 696 atelepis@raywhite.com
CHRISTIAN MINARDS
ELIZABETH BRAITHWAITE
Director 0447 777 037 cminards@raywhite.com
Property Executive 0434 305 588 ebraithwaite @raywhite.com
NAOMI VILAR
ANDREW EDWARDS
Property Executive 0431 209 888 nvilar@raywhite.com
Property Executive 0411 346 232 aedwards@raywhite.com
NICHOLAS YEOH
JESSIE BATES
Property Analyst 0415 566 541 nyeoh@raywhite.com
Team Assistant (02) 9249 3768 jbates@raywhite.com
SYDNEY OFFICE UPDATE | 3
CONTENTS WHAT’S INSIDE
04 B A C C O 06 A D A P T I N G
TO HIGHER OFFICE RENTS: WHAT YOU NEED TO KNOW
08
KEY ECONOMIC DATA:
THE WELL OFFICE
12
END OF TRIP
14
INDUSTRY SPEAK
16
FOCUS LISTINGS
18
JULY TRANSACTIONS
63
OFFICE DEMAND BAROMETER
VACANCY RATES FOR SYDNEY CBD: FELL FROM 6.2% TO 5.9% CASH RATE: UNCHANGED AT 1.5% | AUSTRALIAN UNEMPLOYMENT RATE: 5.6% RAY WHITE COMMERCIAL GROUP NATIONALLY JULY 2017: TOTAL TRADING VALUE $169.5M (LY $185.8M) 8.7% DECREASE ON JULY 2016
STRATEGIES FOR THE NEW FINANCIAL YEAR AHEAD As the new financial year kicks into gear, we clean the slate and start to assess better strategies to make the year ahead a more successful one. For tenants looking to relocate offices, the strategy will need to be formed around challenges in the current market such a securing space with such a limited supply of stock, finding value with the highest office rents we’ve seen in Sydney and locking in a good deal with current low incentives. At the moment, when assessing a relocation, tenants are searching longer and educating themselves about higher rents. They are carefully managing current
versus future spatial needs and as a result, adapting total budgets to factor in higher rents. And when the planets align, and the right property presents itself, they will need to make faster decisions or miss out.
please register your office requirements with us early so we can plan your next move carefully. Don’t forget, a great strategy brings the best results and we can help you with both. All the best,
At Ray White our Agents are short on stock and have large large supply of active tenants looking for space. Lessors will be interested to note that we offer listings in this digital magazine at no charge. It’s emailed to over 10,000 business each month and offers fantastic exposure for your property. Or are you a tenant looking for space soon? We’d love to hear from you, so
Anthony Harris M: 0409 319 060 Disclaimer: Precaution has been taken to establish accuary of listing details herein but does not constitute any representation by the owner or agent.
4 | SYDNEY OFFICE UPDATE
BACCO OSTERIA AND ESPRESSO
SYDNEY NEEDED BACCO. AN ‘EVERY THING FOR EVERY HOUR’ KIND OF P L AC E T H AT T H E Y D O SO WELL IN CITIES LIKE MELBOURNE, BACCO IS A FA N TA S T I C A D D I T I O N TO THE CBD.
bacco.com.au | 1/2–12 Angel Place | (02) 9235 3383
Former Movida Sydney head chef Scott Williams has been drafted to helm the kitchen and executive chef Andrew Cibej (Vini, Berta) keeps a watchful eye over proceedings. Start the day here with Little Marionette coffee and a pastry, or pop in for panini or pizza by the slice or linger later over homemade pasta and a quality Italian wine, many of which are natural wines.
While you can definitely see the references of Vini and Berta coming through, Bacco stands on it’s own two feet with a menu reflecting regional specialties, as well as Cibej’s Nonna’s recipe book. The menu is always changing to reflect seasonality, which is really just a great excuse to go back regularly.
MOVING OFFICE ? Now is the time to look at your Phones, Internet & Network options
Moving office is an ideal time to take a look at upgrading your network/internet access, Telephone a system or Photocopier. Rather than incurring costs to relocate your telephone services and internet access, Nexgen may be able to supply you with a new state of the art NBN ready telephone system & upgraded services at a lower cost. upg Relocating your business can be a very challenging and costly experience, especially when it comes to telecommunication services. Nexgen can provide you with a complete telecommunication solution to ensure that your business continues to operate without any interruptions. If you are planning to upgrade your technology, we will help you decide & tailor a solution that best fits your business requirements. Our experienced specialists will guide you through the entire process & help you choose the right solution.
1300 637 883 nexgen.com.au
6 | SYDNEY OFFICE UPDATE
THOUGHT LEADERSHIP
ADAPTING TO HIGHER OFFICE RENTS: WHAT YOU NEED TO KNOW FOR MANY OVERSEAS BUSINESSES, AUSTRALIA AND I T S C E N T R E O F C O M M E R C E , S Y D N E Y, I S T H E N U M B E R ONE CHOICE TO INVEST AND GROW A BUSINESSES. Australia offers political stability, low interest rates, a warm friendly community, proactive government infrastructure and commercial development strategies, sensible banking practices and a strong housing and investment market. Combine this with our great schools,terrific climate and a lifestyle with diverse cultural harmony and it’s easy to see why Australia is so desirable. This has been the backbone driving strong demand for business investment and demand for office space in Sydney. The Martin Place precinct is no longer a banking and legal precinct. We now have Linkedin, Expedia, Tesla, Twitter, Facebook, Snapchat, Apple, Amazon, Wotif, Freelancer, Atlassian, Airtasker and a whole host of other tech companies making massive investments in office premises in Sydney.
Take this demand and combine this with stock withdrawals due to conversion of office towers to residential and hotel development, as well as compulsory acquisition of commercial buildings due to the Light Rail and the result is record high rent levels in Sydney. THE QUESTION IS, HOW DOES A BUSINESS REMAIN P R O F I TA B L E W H E N R E N T S FOR B GRADE OFFICE SPACE HAS MOVED FROM AROUND $750 AND $850 PSM GROSS TO CIRCA $1,000 P S M G R O S S? The reality is that for many businesses you absolutely must have a Sydney City location to be relevant, competitive, and recruit and retain quality staff.
SYDNEY OFFICE UPDATE | 7
W H E N I TA L K W I T H TENANTS AND BUSINESSES ABOUT HOW THEY MANAGE THESE NEW HIGHER RENTS AND LOW INCENTIVES THE RESPONSES ARE PRETTY CONSISTENT.
Move away from hot spots Circular Quay and the financial precinct north of Martin Place has seen significant rental growth. Tenants are now willing to look south past Market Street and west down to Kent Street in order to find rental rates under $850 psm gross as opposed to north of $1,000 psm gross.
Maximise efficiencies on the space you take A great architect or designer can maximise your fit out and efficiencies that might save you 10-20% on usable space. Smaller front of house, carefully designed meeting rooms, kitchens that also function as a collaborative work areas, smaller storage and server rooms. Obviously you can’t hire staff and make them work from a lobby cafe, but there are some great lobby cafes offering WiFi, USB and laptop power points, and comfortable acoustic booths and seating that many tenants use as overflow meeting spaces and short term work areas. A great example is the lobby cafe at 400 George Street.
Activity based workstations
Take less space
Hot desking, activity based work environments, smaller workstations, tighter and more efficient work layouts can save 10-20% on your tenancy footprint, and ease the pressure from your rental bill.
In the past tenants have taken an extra 20-30% space for growth. I’m now seeing a more conservative approach from businesses taking space for the short term and being more conservative about growth space as this has a major impact on budgets
Shared boardrooms and conference facilities Owners like Dexus are building high quality shared meeting rooms, overflow workspace and conference rooms. This is winning tenants over who can reduce their total office footprint within their assets. I think we’ll definitely see more of this in large A grade towers as other Lessor’s build similar offerings.
Reduce non core staff and outsource Businesses can now easily use outsourcing platforms like Freelancer and Airtasker to quickly find high quality specialty staff who can work remotely. I’m seeing businesses now outsourcing roles once reserved for staff on site such as software programming, accounting, back office functions, copywriting, creative design, telemarketing and even virtual assistants.
Teaming up to get larger space We’ve seen a number of tenants from different businesses come together and share space in order to get larger space. It offers economies of scale and more choices as there is a greater supply of larger space, as opposed to smaller tenancies.
Take shorter leases The impact of the standard 4-5% fixed increases on say a 5-10 year lease at a high base rental can compound quickly. Some businesses are looking at shorter leases, for example 3-4 years, as they are happy to take space for now as opposed to land banking space for the future. Regardless of your budget though there are leasing solutions for every stage and workforce size. You can talk to any of my team about your requirements, to ensure you find the best solution for your business, for where you’re at now and into the future.
8 | SYDNEY OFFICE UPDATE
THE well OFFICE
WORKPLACES THAT FOSTER STAFF WELLBEING ANDREW JOHNSON – MD, INTERMAIN
AT I N T E R M A I N , W E U N D E R S TA N D H O W A C L E V E R LY DESIGNED OFFICE CAN IMPROVE PRODUCTIVITY A N D H AV E A P R O F O U N D I M PA C T O N A C O M PA N Y ’ S C U LT U R E . A S T H E P L A N N I N G O F S PA C E S B E C O M E S E V E R M O R E S O P H I S T I C AT E D A N D T H E L I N E S BETWEEN WORK AND HOME LIFE BLUR, WE ARE S E E I N G T H E D E M A N D F O R ‘W E L L’ O F F I C E S PA C E S ON THE RISE. If you haven’t already come across the term, a ‘well’ office is one that supports the physical, emotional and mental wellbeing of your staff. They are workplaces that address air and water quality and levels of natural light, and encourage physical movement and fitness. They are comfortable spaces where staff ‘like to be’. It is common sense that work spaces that make people ‘feel good’ will have a positive impact on productivity, innovation and lower rates of absenteeism and turnover.
But many leading research organisations have supported this ‘gut instinct’ with data that suggests that human happiness has direct links to company and stock price performance. Conversely, much research has been performed on the cost of absenteeism, estimated by Health Services Australia to be $7 billion per year in Australia. And in 2011 Medibank released research conducted by KPMG Econtech that valued the cost of presenteeism
(those who are not fully functioning at work due to illness or medical conditions) to be a staggering $34.1 billion per annum in Australia. At Intermain, we get a lot of satisfaction designing and delivering smart spaces which provide significant wellness benefits to tenants and their staff. Whilst there are a number of official certifications that can be applied such as the WELL Building Standard, companies can also make significant improvements without breaking the bank. Prioritising some simple, high impact changes can have a huge impact, and focussing on the following four key areas will see you well on your way to achieving a well office.
SYDNEY OFFICE UPDATE | 9
AIR QUALITY
THE OPEN PLAN BALANCE
Promoting good air quality has a profound impact on the health of an office. Indoor air quality is not only affected by outside pollution, it is also degraded by internal sources like off-gassing from building materials, indoor combustion sources and airborne germs. There are a number of ways these effects can be countered using the right air purifying equipment, ventilation systems and air conditioning solutions that are appropriate for the space. Intermain is also a huge advocate of using materials that are non-toxic and have low off-gassing, as well as the use of water-based adhesives and coatings. Materials that are not susceptible to moisture damage are also key to controlling mould in the atmosphere.
The shift in office design towards open plan over the past two decades has had a transformative effect on how staff interact and collaborate. But it also has its challenges which a good office design will address. A balanced scheme that promotes employee wellbeing will provide private areas where staff can not only meet without distraction, but people can also use as solace from the buzz of the open office. Our clients are successfully integrating chill out zones and even meditation pods into their office scheme to give their staff areas for clear thinking and reflection. They are reporting huge benefits giving their people this space – not just in encouraging innovation but also in reducing stress related issues and conflicts in the workplace.
A FIT, CONNECTED OFFICE
LIGHT AND VIEWS In the same way we favour natural light and views in our home, so too do these aspects affect the happiness of a workforce. But if your office doesn’t overlook the harbour, there are many ways you can improve the view from your office. We have transformed a brick wall view into a green living wall for several of our clients, significantly enhancing both the aspect and contributing to better air quality. We have also worked with many clients to cost-effectively fill their floors with natural light, simply by replacing internal walls with glass panelling.
The design of an office that facilitates movement is the antidote to a sedentary, unhealthy workplace. Humans weren’t designed to sit down all day, and adjustable sit/stand desks respond to this basic need to be standing, improving employees backs and core strength in the process. On a recent project we installed an impressive central spiral stairwell that got staff up, moving efficiently between floors to speak directly with their colleagues in favour of impersonal emails.
At Intermain, we are also passionate about providing our clients with great end-of-trip facilities that truly encourage tenants to cycle, run and walk to work, or exercise in their lunch break.
A CHANGING MARKET The movement towards ‘well’ offices is by no means a brand new concept, but demand for these spaces is certainly growing. If this trend continues, we anticipate that incorporating standards such as ‘WELL’ will become commonplace in the next decade, in much the same way that Green Star has become mainstream for measuring a building’s environmental impacts. As some changes require more meaningful financial outlay, landlords who plan for investing in their assets to improve the building’s wellness rating will be best positioned when this requirement becomes standard.
ANDREW JOHNSON MANAGING DIRECTOR 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 work nationally from offices in Sydney, Melbourne and Brisbane and have one of the largest, state-of-the art joinery workshops in Australia. intermain.com.au
10 | SYDNEY OFFICE UPDATE
CASE STUDY
Image of Brian and Anthony on site
LEASE TO ULTIMATE OFFICE SOLUTIONS
66 C L A R E N C E S T R E E T ULTIMATE OFFICE SOLUTIONS (UOS) RUN SEVERAL COWORKING AND SERVICED OFFICE BUSINESSES IN SYDNEY, AND THEY’VE JUST ADDED AN ADDITIONAL LEASE TO THEIR PORTFOLIO, TAKING THE TOP TWO FLOORS OF 66 CLARENCE STREET. THE SPACE TOTALS 1,736 SQM AND HAS BEEN NEGOTIATED AS A SIX YEAR LEASE COMMENCING IN SEPTEMBER 2017. The space allows for a touch base with the outdoors via a large outdoor balcony on Level 11 and the contemporary fit out will incorporate a feature staircase between floors to maximise connectivity and community engagement. CEO of UOS, Biran Challen commented, ‘ We really liked the location. It’s only 120 metres to Wynyard station and Barangaroo Walk, and we loved the outlook and natural light with three sides of windows.’
This is the second new co-working centre UOS has opened in 12 months and follows a 1200 sqm lease at 20 Bond at the end of 2016. UOS was one of the larger tenants at 55 Hunter Street who were forced to relocate when the building was compulsorily acquired for the new Sydney Light Rail. “The acquisition and compensation of our lease at 55 Hunter Street was a testing process, but it gave us the opportunity to expand our footprint further in Sydney to over 5000m2 and helped drive our business into these two new locations”, shares Mr Challen. Set to open in July, UOS will also relocate its existing business from Grosvenor St, where it has been operating for 20 years.
There will be 70 offices on offer, in various sizes with prices from $990 pcm for a small private office. There will also be co-working spaces, meeting rooms and business lounges as well as virtual office solutions. Project space and managed space for major corporates will also be available. Anthony Harris of Ray White Commercial, who handled the transaction shares, “The international coworking trend is becoming increasingly popular with traditional office clients seeking more flexibility with creative workspace options. We see UOS as a great solution for 66 Clarence Street as it provides traditional office tenants on other floors with the ability to use UOS for meeting rooms or temporary offices or where short term project space is required.”
“The timing of this move has allowed us to capture strong demand in a buoyant leasing market. In my 40 years in this business, we have never seen such strong demand from small to medium businesses that want to move towards a more flexible workspace model in a hybrid, co-working environment “ said Mr Challen.
SOLUTIONS. SPEED.
SATISFACTION.
With industry best lead times, we are equipped to meet your deadlines on any project. Coupled with a superior product range, we will work with you to create the perfect office landscape, no matter the job requirements.
02 9557 3055
krost.com.au
12 | SYDNEY OFFICE UPDATE
END OF TRIP 25 BLIGH STREET
25 BLIGH STREET IS A PROMINENT 31 LEVEL OFFICE
DATE COMPLETED: 2012
TOWER, CENTRALLY LOCATED ON BLIGH STREET WITHIN
OVERVIEW
THE CORE PRECINCT OF THE SYDNEY CBD, BETWEEN HUNTER AND BENT STREET. AT APPROXIMATELY 16,350 SQM, THE IMPRESSIVE CORPORATE ADDRESS STANDS AMONGST SOME OF THE CITY’S MOST ICONIC BUILDINGS. THERE’S AN ABUNDANT OF NATURAL LIGHT, GOOD CEILING HEIGHT AND VIEWS FROM THE UPPER FLOORS OF SYDNEY HARBOUR AND THE CITYSCAPE.
The property features 26 levels of commercial office space, an underground carpark and premium End Of Trip facilities. The 400 sqm gym is spacious and functional, with adjoining squash court and well appointed male and female change rooms. The end of trip facilities at 25 Bligh Street exceed the standard of like for like buildings in the CBD.
SYDNEY OFFICE UPDATE | 13
It sets a benchmark of what End Of Trip facilities can be and offers a superb bonus for people who work in the building. Location: Level 4, open 8am – 6pm with secure keycard access, exclusive to tenants.
PARKING FACILITIES The building features a secure basement car park, accessible via O’Connor Street, with space for 22 cars, 16 motorbikes and 13 bicycles.
SHOWERS, LOCKERS AND OTHER FACILITIES People who work in the building make great use of the squash court and gym space, which features a range of high quality, high spec equipment. The gym area boasts True Fitness cardio machines for running, cycling and rowing, a range of weight machines, free weights and weight benches, alongside ample floor space for freestyle activities like stretching and rolling.
In addition to the equipment, there are three plasma TVs, a water cooler and a fresh daily towel service. Both male and female change rooms are equipped with six showers with complimentary toiletries, over 30 lockers for personal storage, an iron and ironing board, hair dryers and GHD hair straighteners, for post work-out grooming.
14 | SYDNEY OFFICE UPDATE
INDUSTRY SPEAK
Being aware of your make good provisions when entering into your commercial lease. MAKE GOOD PROVISIONS IN A COMMERCIAL LEASE CAN CAUSE MANY PROBLEMS FOR TENANTS WHEN COMING TO THE END OF A LEASE AND AS SUCH IT IS IMPORTANT TO BE AWARE OF THESE CLAUSES WHEN ENTERING INTO THE LEASE SO THAT YOU UNDERSTAND YOUR OBLIGATIONS.
WHAT IS A MAKE GOOD PROVISION?
USE A MAKE GOOD PROVISION AS A NEGOTIATING TOOL
If you have a commercial lease in place for your business, or are in the process of entering into a commercial lease, you may be familiar with the term “Make Good”.
Many of the “Make Good” provisions appear to be standardised in a commercial lease. However, when negotiating the terms of your lease, including rent, outgoings and rent increases, you should consider the cost of your obligation to “Make Good” the premises and balance these costs with your general outgoings and expenses for the term of the lease. If provisions are made for the costs of this process then it will not come as such a shock at the end of the lease as it has been prepared for.
In most cases, a “Make Good” provision means that upon termination or expiry of a lease, the tenant or lessee is required to ensure the premises are returned to its original state (i.e. the state in which the property was given), but for-general wear and tear over the course of the lease. Such clauses could include re-painting a tenancy, recarpeting a tenancy, removing internal offices and structures that have been added to the tenancy by the tenant or lessee. All of these items come at a cost directly to the tenant or lessee and can be very expensive.
The other item that can assist with Make Good provisions is also inserting a clause into the lease that provides for the option of a potential new tenant utilising the current fit-out / structure of the premises.
SYDNEY OFFICE UPDATE | 15
With this clause it leaves in place the option of a potential future tenant taking on the premises and minimising de-fit works to be done by you. HOW TO ENSURE YOU ARE COMPLIANT WITH YOUR “MAKE GOOD” PROVISION Many Lessees’ do not turn their mind to their obligations to “Make Good” the premises at the commencement of the lease as they are not required to fulfil these obligations at this time. However, this is the most important time for a Lessee to take the necessary steps in protecting themselves under the obligation of the “Make Good” provision for when the time comes to vacate the Premises at the end of the lease. At the expiry or termination of your lease, you must ensure that you have complied with the Make Good provisions to avoid any loss of bond, guarantee, security deposit or potential legal action being commenced against you for breach of lease or damages.
OUR BEST TIPS TO ENSURE COMPLIANCE OF YOUR MAKE GOOD PROVISION ARE AS FOLLOWS: 1 Check the provisions of what is required by you to “Make Good” the premises at the commencement of the lease and use these obligations as a negotiating tool, for example if the term of the lease is relatively short you may consider attempting to negotiate on specific make good provisions such as re-painting; 2 T ake photographs of the premises at the commencement of the lease prior to fit out or obtain a dilapidation report from the commencement; 3 E nsure you are not required to make good items of a capital nature such as ceilings or external walls; 4 O btain a condition report from an independent expert at the commencement of the lease; 5 U pon Fit Out of the premises, keep note of all the changes you are making to the premises and evaluate what would be required to be removed at the end of the lease and take photographs upon completion of the fit out; 6 O btain estimates of de-fit costs as soon as possible so that provisions can be made for such costs;
I F Y O U H AV E A N Y Q U E S T I O N S A B O U T A N E W L E A S E , P L E A S E D O N O T H E S I TAT E T O C A L L U S O N 02 8239 9600 O R V I S I T J H K L E G A L .C O M . A U
7 E nsure that the Landlord/Lessor is aware of your changes to the premises and document this notice in writing- this may include the photographs you have taken and/ or the condition report you have obtained; 8 U pon vacating the premises, take further photographs of the state of repair and if necessary, obtain a further condition report for production if it is requested by the Lessor; and 9 E nsure that you have complied with all of the provisions under the lease, upon vacation of the premises. These provisions may include, professional cleaning, re-painting the premises, removal of floor coverings and removal of fit-out, at your own expense. Given that ”Make Good” obligations can be costly, it is important to seek legal advice before entering into a Lease so that the terms can be properly reviewed and amended if required. It is important that the clauses are properly drafted and specific, so that you can satisfy the ‘Make Good’ at the conclusion of the Lease. JHK Legal will be able to assist with such enquires and negotiations.
16 | SYDNEY OFFICE UPDATE
FOCUS LISTINGS 62 PITT STREET
At 62 Pitt some much needed fitted supply comes to the market with 2 whole floors for lease on levels 4 and 2. Each floor is self contained and has excellent natural light and outlook. Whole floors here are 221m2 each. Agent: Anthony Harris 0409 319 060 Elizabeth Braithwaite 0434 305 588
25 BLIGH STREET
A selection of 3 quality suites are for lease in this ever popular boutique building which features a squash court and new end of trip and gym facilities. Suites range from 88m2, 117m2, and 175m2 all with existing fit outs. Rents range from $890 gross to $1050 gross. Agent: Anthony Harris 0409 319 060 Elizabeth Braithwaite 0434 305 588
48 HUNTER STREET
Try and find better value than this at $875 gross for a whole floor of 200m2. The tenancy has just been stripped of an old fit out and is now being refurbished with a new kitchen and open plan layout. Agent: Anthony Harris 0409 319 060
46 MARKET STREET
Possibly one of the best suites for lease in this building, amazing views over queen victoria building and the southern city skyline. This bright crisp clean space has an architects fit out in place and is 214m2 at $925 gross. Agent: Anthony Harris 0409 319 060 Elizabeth Braithwaite 0434 305 588
SYDNEY OFFICE UPDATE | 17
RECENT TRANSACTIONS A d d re ss
A re a (S q m)
Le a se St a r t Da t e
Te r m ( Ye a r s)
G ross R e nt ( Psm)
Le sse e
10, 28 O’Connell Street
483.3
August 2017
4
$970
Aquasia
Part Level 3, 63 York Street
208
August 2017
3
$721
Assured Legal Solutions
Suite 3.17, 428 George Street
100
June 2017
3
$607
Jenny Craig
1203/50 Margaret Street
122.7
April 2017
2
$750
CodeHouse
Part 3, 99 York Street
144
February 2017
4
$675
Vision Property
Level 2, 104-106 Commonwealth Street
300
May 2017
3
$495
Clifford Wallace
2b, Level 31 George Street
147.7
June 2017
5
$1,649.43
Odyssey
502, 28 O’Connell Street
164
May 2017
5
$1,095
Klein & Co
Level 10, 111 Elizabeth Street
753
January 2017
7
$845
16 Wardell Chambers
203, 46 Market Street
206.9
April 2017
5
$750
Medicolegal Psychiatry
801, 50 Margaret Street
154
March 2017
5
$950
Infrasol Group
2, 28 O’Connell Street
478
May 2017
5
$935
Davidson Consulting
Suite 1220, 111 Elizabeth Street
378
October 2016
4
$845
MG Medico Legal
Part Level 11, 77 Castlereagh Street
193.3
May 2016
5
$795
Morris Hayes & Edgar
Level 3, 27 Macquarie Place
`228
March 2017
5
$795
I Courts
18 | SYDNEY OFFICE UPDATE
JULY TRANSACTIONS 3.05/25 LIME STREET Amundi Asset Management have moved to the bustling Barangaroo / King Street Wharf precinct leasing a prime corner suite of 221m2 with views over Darling Harbour. Rents at King Street Wharf range from $800 to $900 psm gross. The deal was transacted by Andrew Edwards.
LEVEL 10/28 O’CONNELL STREET Aquasia have relocated from level 2/9 Castlereagh Street and moved into a whole floor of 483m2 on level 10/28 O’Connell Street at a rental of approx $970 gross. Aquasia is an independent corporate advisory partnership with experience in strategic advisory, capital markets, treasury, derivatives and risk management. The Lessor’s Agents were Antonia Foweraker of Cushman and Wakefield and Anthony Harris of Ray White. PART LEVEL 3/428 GEORGE STREET Curves and Jenny Craig have leased a 100m2 suite on a 3 years lease in the iconic Dymocks Building on George Street. Rents in the Dymocks Building Range From $550 to $650 psm gross. Jenny Craig is one of the world’s largest weight management companies with approximately 600 company-owned and franchised centres. The deal was transacted by Elizabeth Braithwaite 3/63 YORK STREET Assured Legal Solutions have taken a 3 year lease in a creative warehouse style office at level 3 / 63 York Street from a private investor. The tenancy featured original timber floors and exposed ceiling with refurbished amenities. Rents at 63 York Street range from $750 to $850 gross. The deal was transacted by Anthony Harris.
SYDNEY OFFICE UPDATE | 19
TENANT REP BRIEF Ten an t Na me
A re a (S q m)
T iming
Comme nt s
Loc a t ion
Le a se
Employsure
1300-1600
1 March 2018 Southern CBD, Fringe
A/B Grade
UDKU
200-250
1 May 2018
CBD, City Fringe
3-5 year term, refurbished space ideal
Proofpoint
500-650
Q4 17 Q1 18
Sydney CBD
5 year lease
Thomas Miller
400-500
1 Dec 17
Sydney CBD
3-5 years
Xenith IP Group
1400-1700
1 July 2018
Sydney CBD, North of Park
6 years with options to renew
The Carlyle Group
400-450
Q1 2018
Sydney CBD Core
5 years + options, parking, excellent views
Grimsey Wealth
250-400
Q4 2018
CBD
3-5 years
JAMF
400-500
Q1 2018
CBD, Rocks
5-10 years
Edwards Lifesciences
1500-1700
1 May 2018
North & North Western Sydney
5 years
Cambridge Associates
400-500
1 June 2018
CBD
Min 5 years with 5 year option
Property NSW
250-300
Sept Oct 2017
CBD, Core & Midtown
5 years
Crown Resorts
200-300
Nov Dec 2017
Central Barangaroo
2 years + 1 year option
ATC Insurance Solutions
110-150
1 November 2017
Circular Qauy North, Macquarie St South
5 years, preferred fit out with boardroom, kitchen and open plan area with 10 workstations
Criteo Australia
200-250
December 2017
CBD, King St Wharf
3 years + 2 year option
Coal Services Pty Ltd
750-850
1 August 2018
CBD
5 years + 5 year option
Visual Risk
525-600
1 December 2017
CBD
Lease commencement March 2018
20 | SYDNEY OFFICE UPDATE
62 PITT STREET
FIND YOUR PERFECT SPACE 25 BLIGH STREET 387 GEORGE STREET
CENTRAL LOCATION CITY VIEWS
SYDNEY OFFICE UPDATE | 21
1 Margaret Street , Sydney Level 16, 1 Margaret Street , Sydney 1 Margaret Street is a prominent A-grade building located in the Western Core of the Sydney CBD, overlooking Darling Harbour. The building completed refurbishment works in 2002, including the facade, foyer, floors and lifts. - Great sublease opportunity to August 2019 - Potential for a longer direct lease - Part floor with existing fit out and furniture - Significant fit out savings - 6 car spaces available
Area m2:
932.4 approx 2
Rent $/m : Rental PA:
$913 Gross $851,468
Andrew Telepis 0415972696 atelepis@raywhite.com Anthony Harris 0409 319 060 aharris@raywhite.com
22 | SYDNEY OFFICE UPDATE
88 Pitt Street , Sydney Whole Floor 12, 88 Pitt Street , Sydney 88 Pitt Street, Sydney is superbly located in the heart of Sydney's Central Business District. The property is ideally positioned in relation to Sydney's financial and banking precincts and within a short walking distance to George Street. - Your own private balcony with sensational city views ! - Bright and fresh office space of 360m2, plus 62m2 balcony - Brand new kitchen, boardroom, meeting rooms - Abundance of natural light on three sides
Area m2:
360 approx
Rent $/m2:
$925 Gross $333,000
Rental PA:
Jeremy Piggin 0413 336 161 jpiggin@raywhite.com Anthony Harris 0409 319 060 aharris@raywhite.com
SYDNEY OFFICE UPDATE | 23
23 Hunter Street , Sydney Whole Level 4, 23 Hunter Street , Sydney Currency House is located in the heart of the financial district of the Sydney CBD, on the corner of Pitt and Hunter Street and provides an opportunity for small to medium sized businesses to secure a quality commercial office suite in this prime location. - Whole floor in Currency House - 3 sides of light with an attractive outlook - High quality fitout with open plan & meeting rooms
Area m2:
332 approx 2
Rent $/m : Rental PA:
$800 Gross $265,600
Anthony Harris 0409 319 060 aharris@raywhite.com Naomi Vilar 0431 209 888 nvilar@raywhite.com
24 | SYDNEY OFFICE UPDATE
48 Hunter Street , Sydney Level 12 & 13, 48 Hunter Street , Sydney 48 Hunter Street is located close to the intersection of O’Connell and Pitt Streets. Building features include floor by floor security, individual packaged air conditioning, common shower and locker facilities, terrific natural light and a pleasant outlook over Hunter Street. - Secure top 2 floors connected with staircase - Approx 200m2 on level 12 and 130m2 on level 13 - Existing fit out in place with meeting rooms and offices - Own kitchen and bathrooms, intercom access
Area m2:
330 approx
Rent $/m2:
$795 Gross $262,350
Rental PA:
Anthony Harris 0409 319 060 aharris@raywhite.com
SYDNEY OFFICE UPDATE | 25
9 Barrack Street , Sydney Level 7 , 9 Barrack Street , Sydney 9 Barrack Street is a heritage office building prominently positioned on the corner of York Street. The building is in close proximity to Martin place, Wynyard Station and the Queen Victoria Building. The lifts and foyer have been recently upgraded. Concept images shown in marketing. - NOTE: Images shown are taken from other floors and are indicative - Lessor to fully refurbish tenancy throughout - Terrific light on 3 sides, opening windows with sunny aspect - Capacity for 24 + workstations
Area m2:
310 approx 2
Rent $/m : Rental PA:
$870 Gross $269,700
Anthony Harris 0409 319 060 aharris@raywhite.com
26 | SYDNEY OFFICE UPDATE
23 Hunter Street , Sydney Level 1, 23 Hunter Street , Sydney Currency House is located in the heart of the financial district of the Sydney CBD, on the corner of Pitt and Hunter Street and provides an opportunity for small to medium sized businesses to secure a quality commercial office suite in this prime location. - Whole floor in Currency House - North aspect with views over Hunter Street - High quality fit out with reception, boardroom, meeting rooms - Approx 19 workstations, chairs, own kitchen and bathroom
Area m2:
277 approx
Rent $/m2:
$795 Gross $220,215
Rental PA:
Anthony Harris 0409 319 060 aharris@raywhite.com Naomi Vilar 0431 209 888 nvilar@raywhite.com
SYDNEY OFFICE UPDATE | 27
19 Martin Place, Sydney , Sydney Part 33, 19 Martin Place , Sydney The MLC Centre is Sydney's tallest office tower and its iconic status dominates the city skyline. The building occupies a prominent position in the Central Business District of Sydney, bounded by Martin Place, Castlereagh and King Streets, within the city's prime core precinct. - Sub lease until March 2023 - Existing legal style fit out in place - Approx 10 executive office, 10 workstations - Reception and 2 meeting rooms
Area m2:
250 approx
Rent $/m2:
$1,050 Gross $262,500
Rental PA:
Anthony Harris 0409 319 060 aharris@raywhite.com
28 | SYDNEY OFFICE UPDATE
27 Macquarie Place , Sydney Level 7, 27 Macquarie Place , Sydney Kyle House is a character building with art deco features and a magnificent heritage faรงade. The building enjoys direct access to the leafy Macquarie Place Park and is just a short stroll from Circular Quay. - High floor tenancy with great light all 3 sides - Whole floor with secure access - Existing fit out in place that can be adapted - Lovely leafy outlook over Macquarie Place - Potential for furniture to remain
Area m2:
228 approx 2
Rent $/m : Rental PA:
$800 Gross $182,400
Anthony Harris 0409 319 060 aharris@raywhite.com Elizabeth Braithwaite 0434 305 588 ebraithwaite@raywhite.com
SYDNEY OFFICE UPDATE | 29
62 Pitt Street , Sydney Whole Floor 4, 62 Pitt Street , Sydney
Area m2:
62 Pitt Street is located in the heart of the financial core on the corner of Spring and Pitt Streets adjacent to Australia Square. The building features a bright modern foyer, two high quality lifts, brand new showers and changing facilities.
Anthony Harris 0409 319 060 aharris@raywhite.com
- Excellent natural light throughout - Great opportunity in the northern pocket of CBD - Brand new end of trip facilities - Access to gym and squash courts at neighbouring property - Available 1 December 2017
221 approx
Elizabeth Braithwaite 0434 305 588 ebraithwaite@raywhite.com
30 | SYDNEY OFFICE UPDATE
62 Pitt Street , Sydney Whole Floor 2, 62 Pitt Street , Sydney
Area m2:
62 Pitt Street is located in the heart of the financial core on the corner of Spring and Pitt Streets adjacent to Australia Square. The building features a bright modern foyer, two high quality lifts, brand new showers and changing facilities.
Anthony Harris 0409 319 060 aharris@raywhite.com
- Excellent natural light throughout - Existing fitout in place, glass offices, boardroom - Full kitchen, existing power and data - Brand new end of trip in basement - Access to gym and squash courts at neighbouring property
221 approx
Elizabeth Braithwaite 0434 305 588 ebraithwaite@raywhite.com
SYDNEY OFFICE UPDATE | 31
88 Phillip Street , Sydney Part level 33, 88 Phillip Street , Sydney Aurora Place is a landmark 42 storey office building constructed in 2000. The building boasts state of the art services winter garden design. Aurora Place is situated on the northeastern corner of Phillip and Bent Streets adjacent to Botanical Gardens and just a short walk to Martin Place and Circular Quay. -Ideal space for tech start ups ! -Prime sub lease opportunity at a bargain rental -Grandstand views North over Sydney Harbour -Prime North facing suite with wintergarden, views over Harbour
Area m2:
220 approx
Rent $/m2:
$990 Gross $217,800
Rental PA:
Anthony Harris 0409 319 060 aharris@raywhite.com
32 | SYDNEY OFFICE UPDATE
46 Market Street , Sydney Part 9, 46 Market Street , Sydney 46 Market Street is located on the corners of York, Market and George Streets with the Commonwealth Bank on the ground floor. The building underwent a major refurbishment in 2002 including lift upgrades, new foyer, new tea rooms, new bathrooms and refurbished floors. There are male and female showers in the basement. - Crisp, clean, bright and vibrant offices - Flooded with sunlight, amazing views over QVB - Stunning outlook of city skyline
Area m2:
214 approx 2
Rent $/m : Rental PA:
$875 Gross $187,250
Elizabeth Braithwaite 0434 305 588 ebraithwaite@raywhite.com Anthony Harris 0409 319 060 aharris@raywhite.com
SYDNEY OFFICE UPDATE | 33
104 Bathurst Street , Sydney Whole Floor 7, 104 Bathurst Street , Sydney 104 Bathurst Street "International House" is located at the prominent corner of Pitt Street just moments to Town Hall, Galleries Victoria, World Square and Hyde Park. - Penthouse style tenancy on top floor - Two huge outdoor terraces - Own kitchen and bathrooms - Recently paint, great natural light - Air conditioned suite
Area m2:
214 approx
Rent $/m2:
$550 Gross $117,700
Rental PA:
Elizabeth Braithwaite 0434 305 588 ebraithwaite@raywhite.com Naomi Vilar 0431 209 888 nvilar@raywhite.com
34 | SYDNEY OFFICE UPDATE
61 York Street , Sydney Level 11, 61 York Street , Sydney 61 York Street is located on the western side of York Street between Barrack & Erskine streets. Completed in early 2008, and designed by Candalepas & Associates, the building comprises 16 levels of office space with Palomino Espresso at ground and Stitch Bar at basement level. - Fitted whole floor with a large private balcony - Partitioned with reception, meeting room, 2 offices - 12 workstations with power and data - High quality & secured lobby with intercom access
Area m2:
208.3 approx
Rent $/m2:
$830 Gross $172,889
Rental PA:
Anthony Harris 0409 319 060 aharris@raywhite.com Jeremy Piggin 0413 336 161 jpiggin@raywhite.com
SYDNEY OFFICE UPDATE | 35
61 York Street , Sydney Level 13, 61 York Street , Sydney 61 York Street is located on the western side of York Street between Barrack & Erskine streets. Completed in early 2008, and designed by Candalepas & Associates, the building comprises 16 levels of office space with Palomino Espresso at ground and Stitch Bar at basement level. - Fitted whole floor with a large private balcony - High quality & secured lobby with intercom access - Independent air conditioning & shower facilities are available - Vacant from 1 June 2017
Area m2:
208.3 approx
Rent $/m2:
$830 Gross $172,889
Rental PA:
Anthony Harris 0409 319 060 aharris@raywhite.com Jeremy Piggin 0413 336 161 jpiggin@raywhite.com
36 | SYDNEY OFFICE UPDATE
61 York Street , Sydney Level 9, 61 York Street , Sydney 61 York Street is located on the western side of York Street, between Barrack & Erskine streets. Completed in early 2008, and designed by Candalepas & Associates, the building comprises 16 levels of office space with Palomino Espresso at ground level and Stitch Bar at basement level. - Partitioned whole floor with new paint and carpet - Existing meeting room off reception - Furnished with 22 workstations and chairs - Whole floor with private enclosed balcony
Area m2:
207 approx 2
Rent $/m : Rental PA:
$790 Gross $163,530
Anthony Harris 0409 319 060 aharris@raywhite.com Jeremy Piggin 0413 336 161 jpiggin@raywhite.com
SYDNEY OFFICE UPDATE | 37
1 Barrack Street , Sydney Level 2, 1 Barrack Street , Sydney 1 Barrack Street is situated on the corner of Barrack and Clarence Streets just a few minutes walk from Martin Place. Terrace style building with direct street access from Barrack Street. This is an ideal space for creative users wanting character features but the proximity of being in the CBD. - Direct Street entrance, signage available - Partitioned and furnished. Reception, 2 large corner offices. - Workstations for 16 staff, full kitchen - Own shower, male and female toilets
Area m2:
200 approx 2
Rent $/m : Rental PA:
$725 Gross $145,000
Anthony Harris 0409 319 060 aharris@raywhite.com
38 | SYDNEY OFFICE UPDATE
48 Hunter Street , Sydney Level 7, 48 Hunter Street , Sydney 48 Hunter Street is located close to the intersection of O’Connell and Pitt Streets. Building features include floor by floor security, individual packaged air conditioning, common shower and locker facilities, terrific natural light and a pleasant outlook over Hunter Street. - Brand new refurbishment to open plan - High quality new kitchen installed - Superb natural light, after hours intercom access - Vacant now and ready to move into
Area m2:
200 approx 2
Rent $/m : Rental PA:
$875 Gross $175,000
Anthony Harris 0409 319 060 aharris@raywhite.com Andrew Edwards 0411 364 232 aedwards@raywhite.com
SYDNEY OFFICE UPDATE | 39
1 Barrack Street , Sydney Level 1 , 1 Barrack Street , Sydney 1 Barrack Street is situated on the corner of Barrack and Clarence Streets just a few minutes walk from Martin Place. Terrace style building with direct street access from Barrack Street. This is an ideal space for creative users wanting character features but the proximity of being in the CBD. - Direct Street entrance, signage available - Partitioned and furnished. Reception, meetings rooms and offices. - Room for up to 16 - 20 staff full kitchen - Own shower, male and female toilets
Area m2:
196 approx
Rent $/m2:
$725 Gross $142,100
Rental PA:
Anthony Harris 0409 319 060 aharris@raywhite.com
40 | SYDNEY OFFICE UPDATE
27 Macquarie Place , Sydney Mezzanine Gallery, 27 Macquarie Place , Sydney Kyle House is a character building with art deco features and a magnificent heritage faรงade. The building enjoys direct access to the leafy Macquarie Place Park and is just a short stroll from Circular Quay. - Unique Mezzanine Gallery office space in beautiful art deco building - Whole floor tenancy with direct entry from lift - High quality full kitchen with cararra bench tops - Magnificent heritage arch window which overlooks Macquarie Place Park
Area m2:
179 approx 2
Rent $/m : Rental PA:
$775 Gross $138,725
Anthony Harris 0409 319 060 aharris@raywhite.com Elizabeth Braithwaite 0434 305 588 ebraithwaite@raywhite.com
SYDNEY OFFICE UPDATE | 41
25 Bligh Street , Sydney Suite 18.03, 25 Bligh Street , Sydney 25 Bligh Street is situated on the western side of Bligh Street between Hunter and Bent Streets in the heart of the financial precinct. On-site amenities available to tenants include a gymnasium, showers, storage facilities and forecourt coffee cart - West facing suite with amazing city views - Fitted suite with 4 offices, boardroom, meeting room & waiting area - Abundance of natural light - End of trip facilities, gym and squash court - Available 1 October 2017
Area m2:
175 approx 2
Rent $/m : Rental PA:
$1,050 Gross $183,750
Anthony Harris 0409 319 060 aharris@raywhite.com Elizabeth Braithwaite 0434 305 588 ebraithwaite@raywhite.com
42 | SYDNEY OFFICE UPDATE
63 York Street , Sydney Ground floor, 63 York Street , Sydney 63 York Street is a classic heritage building with a central location. Its compact floor plates allow small companies the prestige of occupying an entire floor. The building is located on the corner of York and Barrack Streets within minutes walk of Wynyard station and Martin Place. - Prime corner position just off Martin Place - Exposure to York and Barrack Street - Timber floors throughout - Only suitable to dry usage, no food allowed.
Area m2:
170 approx 2
Rent $/m : Rental PA:
$1,600 Gross $272,000
Anthony Harris 0409 319 060 aharris@raywhite.com
SYDNEY OFFICE UPDATE | 43
FOR LEASE / MOTIVATED VENDOR , Sydney Part Level 3, 25 Lime Street , Sydney The King Street wharf development provides direct waterfront office accommodation positioned only 10 minutes walk from Martin place. This fast moving dynamic precinct is home to some of Sydney best bars and restaurants and is the new hub for elite businesses such as Macquarie Bank, KPMG and Westpac Bank. - Sensational waterfront suite with views of Darling Harbour - Reception, boardroom, offices and open plan area - Fully Equipped kitchen (dishwasher and stovetop)
Area m2:
165 approx
Rent $/m2:
$820 Gross $135,300
Rental PA:
Andrew Edwards 0411 364 232 aedwards@raywhite.com
44 | SYDNEY OFFICE UPDATE
33 York Street , Sydney Level 2, 33 York Street , Sydney 33 York Street is a modern quality strata title building situated on the western side of York Street between Erskine and Margaret Street, opposite Wynyard Park. The building benefits from direct lift access to Wynyard Station, on site parking as well as common male and female showers and bicycle racks on site. - Rear half of floor with laneway outlook - Open plan layout with 2 glass fronted offices - Full size kitchen within tenancy - Vacant now, flexible lease terms
Area m2:
163 approx
Rent $/m2:
$650 Gross $105,950
Rental PA:
Anthony Harris 0409 319 060 aharris@raywhite.com Naomi Vilar 0431 209 888 nvilar@raywhite.com
SYDNEY OFFICE UPDATE | 45
28 O'Connell Street , Sydney Suite 501, 28 O'Connell Street , Sydney 28 O'Connell encompasses a boutique asset at its best, suited to both creative and traditional style tenants. Ideally located in the centre of Sydney'financial precinct. The building has on-site parking and end of trip facilities. - Images are from fit outs done for other suites within building - Refurbished open plan tenancy - Terrific light over Hunter Street - Brand new shared kitchen on floor
Area m2:
151.7 approx 2
Rent $/m : Rental PA:
$1,095 Gross $166,112
Anthony Harris 0409 319 060 aharris@raywhite.com Elizabeth Braithwaite 0434 305 588 ebraithwaite@raywhite.com
46 | SYDNEY OFFICE UPDATE
86 Liverpool Street , Sydney Level 1, 86 Liverpool Street , Sydney 86 Liverpool Street is located at the corner of Kent Street, close walking distance to Town Hall, World Square and Chinatown. It is 4 - storey building with ground floor retail and 3 levels of office space. - Whole floor with 2 sides of light - Fit out available subject to discussion with the sitting tenant - Open plan, boardroom, 2 offices, comms room - Intercom access, own tea room & shower
Area m2:
151 approx
Rent $/m2:
$630 Gross $95,130
Rental PA: Naomi Vilar nvilar@raywhite.com
Anthony Harris 0409 319 060 aharris@raywhite.com
SYDNEY OFFICE UPDATE | 47
46 Market Street , Sydney Suite 8.03, 46 Market Street , Sydney 46 Market Street is located on the corners of York, Market and George Streets with the Commonwealth Bank on the ground floor. The building underwent a major refurbishment in 2005/6 including lift upgrades, new foyer, new tea rooms, new bathrooms and refurbished floors. There are male and female showers in the basement. - East facing suite looking over George Street - Existing fit out, small reception, large boardroom, 4 offices - Large open plan area with 10 desks
Area m2:
147.6 approx
Rent $/m2:
$825 Gross $121,770
Rental PA:
Anthony Harris 0409 319 060 aharris@raywhite.com
48 | SYDNEY OFFICE UPDATE
387 George Street , Sydney Level 1, 387 George Street , Sydney 387 George Street is close walking distance to both Town Hall and Wynyard right near the new Apple flagship store and Sydney's popular shopping strips. Manhattan style opportunity in an award winning heritage building. - Superb whole floor warehouse style space - New direct lease on offer - Whole floor tenancy fronting George Street - Toilets, shower & kitchenette on floor - Pressed metal ceilings and opening windows
Area m2:
145 approx 2
Rent $/m : Rental PA:
$890 Gross $129,050
Anthony Harris 0409 319 060 aharris@raywhite.com Elizabeth Braithwaite 0434 305 588 ebraithwaite@raywhite.com
SYDNEY OFFICE UPDATE | 49
387 George Street , Sydney Level 10, 387 George Street , Sydney 387 George Street is close walking distance to both Town Hall and Wynyard right near the new Apple flagship store and Sydney's popular shopping strips. Manhattan style opportunity in an award winning heritage building. - Superb high floor warehouse style space - New direct lease on offer - Whole floor tenancy fronting George Street - Toilets, shower & kitchenette on floor - Pressed metal ceilings and opening windows
Area m2:
145 approx 2
Rent $/m : Rental PA:
$875 Gross $126,875
Elizabeth Braithwaite 0434 305 588 ebraithwaite@raywhite.com
50 | SYDNEY OFFICE UPDATE
213 Clarence Street , Sydney Level 4, 213 Clarence Street , Sydney 213 Clarence Street is right in the heart of Sydney, a dynamic region nestled between the Financial District and Darling Harbour with excellent access into and out of the city, positioned on one of Sydney's busiest transport hub's - Town Hall and QVB. - Superb top floor tenancy, self contained - Exposed tubular air conditioning - Own bathrooms and kitchen on your floor - Great natural light from large timber windows
Area m2:
133 approx
Rent $/m2:
$750 Gross $99,750
Rental PA:
Anthony Harris 0409 319 060 aharris@raywhite.com Naomi Vilar 0431 209 888 nvilar@raywhite.com
SYDNEY OFFICE UPDATE | 51
99 York Street , Sydney Part level 3, 99 York Street , Sydney 99 York Street is located between King Street & Market Street, close to QVB, Town Hall, Cockle Bay and Darling Harbour. - West facing suite looking over Clarence Street - Existing fit out in place with reception, boardroom, 3 offices - Large windows with good light - Convenient location, available now - Minimum 3 year lease
Area m2:
121 approx
Rent $/m2: Rental PA:
$675 Gross $81,675
Anthony Harris 0409 319 060 aharris@raywhite.com Andrew Edwards 0411 364 232 aedwards@raywhite.com
52 | SYDNEY OFFICE UPDATE
50 Margaret Street , Sydney Suite 1201, 50 Margaret Street , Sydney 50 Margaret Street overlooks Wynyard Park positioned on top of Wynyard train station and close proximity to Barangaroo via the recently opened Wynyard Walk. The building enjoys excellent natural light and expansive views. Extensive building upgrades to ground floor lobby. - Partitioned suite looking over Wynyard Park - Can be offered as is or refurbished - Existing fit out in place with large boardroom - Light on 2 sides
Area m2:
120.5 approx 2
Rent $/m : Rental PA:
$995 Gross $119,898
Anthony Harris 0409 319 060 aharris@raywhite.com Jeremy Piggin 0413 336 161 jpiggin@raywhite.com
SYDNEY OFFICE UPDATE | 53
25 Bligh Street , Sydney 7.03, 25 Bligh Street , Sydney 25 Bligh Street is situated on the western side of Bligh Street between Hunter and Bent Streets in the heart of the financial precinct. On-site amenities available to tenants include a gymnasium, showers, storage facilities and forecourt coffee cart - Open plan suite with kitchenette - End of trip facilities available - Available now
Area m2:
117 approx 2
Rent $/m : Rental PA:
$890 Gross $104,130
Anthony Harris 0409 319 060 aharris@raywhite.com Elizabeth Braithwaite 0434 305 588 ebraithwaite@raywhite.com
54 | SYDNEY OFFICE UPDATE
50 Margaret Street , Sydney Suite 501, 50 Margaret Street , Sydney 50 Margaret Street overlooks Wynyard Park positioned on top of Wynyard train station and close proximity to Barangaroo via the recently opened Wynyard Walk. The building enjoys excellent natural light and expansive views. Extensive building upgrades to ground floor lobby. - Partitioned suite facing South with views over Wynyard Park - Direct lift exposure from lobby - Currently with 3 - 4 offices, can be open plan - Vacant from 1/09/17
Area m2:
115.25 approx 2
Rent $/m : Rental PA:
$995 Gross $114,674
Anthony Harris 0409 319 060 aharris@raywhite.com Jeremy Piggin 0413 336 161 jpiggin@raywhite.com
SYDNEY OFFICE UPDATE | 55
18 Hickson Road , Sydney Ground, 18 Hickson Road , Sydney Situated in Sydney's most sought after precinct, Walsh Bay. With a large shop front and excellent street exposure, it is the perfect location to create your vision. - DA approved licensed small bar and restaurant with outdoor seating - Plumbing in place for toilet, opportunity for grease trap and exhaust - Ground floor premises with direct street entry - Large display windows allowing terrific exposure and light - Harbour-side location amongst prestigious offices and apartments - High ceilings with exposed concrete surfaces
Area m2:
96 approx
Rent $/m2:
$950 Gross $91,200
Rental PA:
Naomi Vilar 0431 209 888 nvilar@raywhite.com Anthony Harris 0409 319 060 aharris@raywhite.com
56 | SYDNEY OFFICE UPDATE
15 Lime Street - King Street Wharf , Sydney Part Level 4, 15 Lime Street , Sydney The King Street wharf development provides direct waterfront office accommodation positioned just west of the city centre only 10 minutes walk from Martin place. This fast moving dynamic precinct is home to some of Sydney best bars and restaurants and is the new hub for elite businesses such as Macquarie Bank, KPMG and Westpac Bank. - Water front office with balcony - Own kitchen and bathroom with shower - Terrific light throughout
Area m2:
96 approx
Rent $/m2:
$850 Gross $81,600
Rental PA:
Andrew Edwards 0411 364 232 aedwards@raywhite.com
SYDNEY OFFICE UPDATE | 57
84 Pitt Street , Sydney Part level 7, 84 Pitt Street , Sydney 84 Pitt Street is a well appointed office building located within the heart of the CBD's financial precinct and a sought after after city address. There are 3 lifts that service all office floors. - Partitioned tenancy on level 7 - Reception, open area for workstations - Glass fronted offices - Boardroom and meeting room
Area m2:
94 approx
Rent $/m2: Rental PA:
$750 Gross $70,500
Christian Minards 0447 777 037 cminards@raywhite.com Nicholas Yeoh 0415 566 541 nyeoh@raywhite.com
58 | SYDNEY OFFICE UPDATE
25 Bligh Street , Sydney Suite 8.01, 25 Bligh Street , Sydney 25 Bligh Street is situated on the western side of Bligh Street between Hunter and Bent Streets in the heart of the financial precinct. On-site amenities available to tenants include a gymnasium, showers, storage facilities and forecourt coffee cart - East facing suite with great light - Fitted with reception and 4 internal offices - End of trip facilities available - Available December 2017
Area m2:
88 approx
Rent $/m2: Rental PA:
$950 Gross $83,600
Anthony Harris 0409 319 060 aharris@raywhite.com Elizabeth Braithwaite 0434 305 588 ebraithwaite@raywhite.com
SYDNEY OFFICE UPDATE | 59
66 Clarence Street , Sydney Suite 1002, 66 Clarence Street , Sydney 66 Clarence Street is a 13 storey office tower, comprising basement level secure parking, ground floor retail and 11 floors of office accommodation. An extensive refurbishment works program was completed August 2017 with fully refurbished floors of superior quality office space, providing efficient floor plates and high levels of natural light. 3 star NABERS. - Rents from $750 per month per desk - Serviced offices at Wynyard Business Centre - Leases from 3 months to 3 years
Area m2:
80 approx
Rent $/m2:
$870 Gross $69,600
Rental PA:
Naomi Vilar 0431 209 888 nvilar@raywhite.com Anthony Harris 0409 319 060 aharris@raywhite.com
60 | SYDNEY OFFICE UPDATE
4 Bridge Street , Sydney Suite 1005, 4 Bridge Street , Sydney 4 Bridge Street is a residential office building conveniently located near the corner of Bridge and George Streets with an impressive foyer, two lifts and a well maintained rooftop pool and entertainment area. The building is very handy to the ASX, Circular Quay, Australia Square, Martin Place and Wynyard stations. - Beautiful Edwardian office on level 10 with great light on 2 sides - Existing fit out with 2 offices in place and large work area - Internal kitchen and bathroom with shower - Own air conditioning control
Area m2:
59 approx
Rent $/m2: Rental PA:
$740 Gross $43,660
Naomi Vilar 0431 209 888 nvilar@raywhite.com Anthony Harris 0409 319 060 aharris@raywhite.com
SYDNEY OFFICE UPDATE | 61
66 Hunter Street , Sydney Part level 9, 66 Hunter Street , Sydney Located on the corner of Hunter and Bligh Streets, City Mutual Building is an art deco icon situated in the heart of Sydney’s CBD. The building has been recently refurbished ensuring it is equipped with the latest technology and state of the art inclusions. Neil Perry's award winning Spice Temple and Rockpool Bar and Grill are located in the building. - First suite from the lift, great light and views over Bligh Street - Partitioned with 1 boardroom and 4 workstations, room for 4 more - Existing power and data cabling and furniture
Area m2:
58 approx
Rent $/m2:
$945 Gross $54,810
Rental PA:
Anthony Harris 0409 319 060 aharris@raywhite.com Naomi Vilar 0431 209 888 nvilar@raywhite.com
62 | SYDNEY OFFICE UPDATE
46 Market Street , Sydney Suite 10.03, 46 Market Street , Sydney 46 Market Street is located on the corners of York, Market and George Streets. The building underwent a recent refurbishment including lift upgrades, new foyer, new tea rooms, new bathrooms and refurbished floors. The building is connected to high speed optic fibre. - Brilliant light and views over QVB - Existing fit out, small reception, meeting room - Open plan with room for 4 - 6 workstations - Potential for furniture to remain
Area m2: $/m2:
Rent Rental PA:
56.9 approx $925 Gross $52,633
Anthony Harris 0409 319 060 aharris@raywhite.com
SYDNEY OFFICE UPDATE | 63
OUROFFICES 48
O F FI C E S AC R O S S AU S T R AL I A, N EW ZE AL AN D, C H I N A AN D H ON G KO N G
F R O M H U M B LE B EGINNINGS IN 1902 IN T H E S M A L L 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 N A ME 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 TATE 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 F F IC E
23
Q LD O F F IC E S
WA OFFICE
SA O F F IC E
INT ERNAT I ON AL OFFI CES I N: NEW ZEAL AN D HONG KONG CHINA
14
NS W O F F 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
OFFIC E
CON TAC T
O F F IC E
CO NTAC T
Ray White Advisory
(02) 9262 3700
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(1800) 858 696
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64 | SYDNEY OFFICE UPDATE
ce demand barometer
Dexus office demand barometer Lead indicators for office demand reach highest level in six years August 2017 Barometer indicators push to six year high
The Dexus Office Demand Barometer
The Dexus Office Demand Barometer increased in Q2 2017 to the highest level recorded since late 2010, signalling improving conditions for leasing demand in office buildings in the Sydney CBD. The Barometer increased to +2.4% in the June 2017 quarter, up 0.4 percentage points from from last quarter’s reading. Factors driving the Barometer higher were uplifts in ANZ job advertisements and business confidence, with minor improvements in business travel departures and US economic activity. The share market, which had buoyed the Barometer in previous quarters, detracted somewhat this quarter.
Components
Contribution to change (pp*)
ANZ job advertisement series
0.23
S&P/ASX 200 Index
-0.11
Short term business travel departures
0.07
NAB Business Confidence Index (FinPropBus)
0.14
US ISM Manufacturing Index
0.05
*Percentage points
Take-up constrained by lack of available space Although the Barometer has strengthened, actual net absorption of office space has been constrained by a shortage of space. Sydney’s vacancy rate has tightened to 6.4%, the lowest level in nine years. Leasing enquiries for the first half of 2017 were predominantly from the business services sector followed by the IT, and health and community services sectors. Enquiry has also been skewed to smaller tenancies, reflecting growth among small to medium enterprises.
The Barometer vs actual office demand Actual demand
10.0%
Barometer
7.5% 5.0%
2.5% 0.0% -2.5%
-5.0% -7.5% -10.0% Jun-07
Jun-09
Jun-11
Source: Dexus Research, JLL Research
Jun-13
Jun-15
Jun-17
SYDNEY OFFICE UPDATE | 65
Business conditions continue to improve In NSW, business activity has been supported by solid population growth and high levels of infrastructure spending. Business conditions have been steadily improving, along with business confidence. Conditions are expected to remain positive in the short to medium term, although longer term growth in NSW may be tempered by a softening in the housing market. Positive business conditions are good for office demand.
Business conditions and confidence vs office demand Net abs (6mths lag, lhs)
NAB Business Conditions (rhs)
NAB Business Confidence (rhs)
4.0%
20
3.0%
15
2.0%
10
1.0%
5
0.0%
0
-1.0%
-5
-2.0%
-10
-3.0%
-15
-4.0%
-20
-5.0%
2007
2009
2011
2013
2015
2017
-25
Source: Dexus Research, JLL Research
Businesses hiring full time staff again A firming labour market has been a significant driver of office demand in NSW. Rising job advertisements are a sign that companies are becoming more confident about hiring staff. An increase in the share of full time jobs relative to part time jobs in NSW in recent months is another sign of business confidence. The NSW economy added 42,000 jobs over the past year, with many of these in the business services sector.
Employment growth – full time and total
Total Employment
8%
Full-time Employment
6% 4% 2% 0% -2% -4%
2012
2013
2014
2015
2016
2017
Source: Dexus Research, JLL Research
Companies upgrading to better quality space Withdrawals of a significant number of older buildings, either to make way for the Sydney Metro rail line or redevelop for alternate uses, has led to a shortage of secondary office space. This in turn has led to a rapid migration to prime office space. The flight to quality has also been driven by a desire to upgrade and modernise workplaces.
Absorption of prime vs secondary office space in Sydney CBD Prime
Secondary
Total
300 Strong take-up of prime space 200 100 0 -100 -200 -300 FY07
Extracted from the Dexus Office Demand Barometer, August 2017. Contact: Peter Studley, Head of Research peter.studley@dexus.com
FY09
FY11
Source: Dexus Research, JLL Research
FY13
FY15
FY17
66 | SYDNEY OFFICE UPDATE
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