This article is from the Australian Property Journal archive
INVESTA Office ended last year on a high after reeling in 27 new leasing deals at 120 Collins St.
More than 21,100 sqm in new or renewal leases were signed, taking the premium building to near 100% occupancy.
Investa alongside leasing agents Colliers International and Knight Frank has facilitated 12,807 sqm of new leases as 2015 drew to a close. A further 8,384 sqm was renewed or taken by existing tenants.
120 Collins St general manager Claire Clark said the refurbishment was a key factor in motivating tenants to renew their leases rather than relocate.
“We have also invested heavily in upgrading the building services, ensuring optimal comfort and building performance,” she added.
Knight Frank director of office leasing Simon Hale said it is great to see a resurgence in whole and multiple floor occupiers committing to the building in 2015, including Crownbet (4,537 sqm), Crestone Wealth Management (1,377 sqm) and Meydan Group (1,053 sqm).
Colliers’ office leasing director Ben Christie said equally as pleasing has been 120 Collins St’s ability to accommodate part-floor requirements due to the ease associated with subdividing the building’s central core floorplate.
“Organisations such as State St (496 sqm) and Marubeni (419 sqm) have led a flurry of smaller tenants into the building, with occupiers ranging from 55 sqm to 661 sqm accounting for 4,367 sqm of new leasing deals in the building,” Christie said.
The most notable renewals negotiated included Future Fund renewing for a further seven years (3,091.5 sqm) and Standard & Poors also renewing for a further seven years (1,857 sqm).
Christie said strong activity by small-to-medium tenants was a positive indication for the Melbourne office market looking ahead in 2016.
“During the GFC, we saw a drop in demand in this segment of the market, which typically drives Melbourne and is a strong indicator of the health of the office leasing market more broadly,” he said. “We are now back at near-peak levels for small-to-medium sized deals. Positive sentiment and strong business conditions among small-to-medium enterprises is a great sign for the market looking ahead.”
Australian Property Journal
