This article is from the Australian Property Journal archive
THE Australian Tax Office has signed a lease within AMP Capital’s 255 George Street building in the Sydney CBD, taking the asset to more than 99% leased.
The 10-year lease term covers more than 13,000sqm spanning nine levels of the office building and will commence from no later than 1 December 2022.
255 George Street, which is held by investors in the AMP Capital Wholesale Office Fund (AWOF), is currently undergoing a nearly $70 million refurbishment program that is due for a late quarter two 2022 completion date.
“We are delighted to welcome the Australian Tax Office to 255 George Street and to have delivered close to full occupancy to AWOF investors ahead of schedule,” said Kylie O’Connor, global head of real estate at AMP Capital.
255 George Street has also recently seen leases signed with AXA Investment Managers and People + Culture Strategies, while in March AMP Capital secured a 10-year lease with signage rights for almost 5,800sqm with Bank of Queensland Group.
“In the current environment, this lease demonstrates that quality, well-located offices that cater for a shift in tenant demand to buildings that provide greater amenities, the latest health and wellbeing features and high sustainability credentials, will benefit from ongoing strong demand,” said O’Connor.
The works at the site include a new architecturally designed lobby with work zones for increased flexibility, a concierge, brand new end-of-trip facilities and a wellness studio.
“The integration of collaborative spaces and a greater emphasis on amenities that promote employee health & wellbeing including social distancing is expected to lead to a reversal of the densification trend in offices and an increase in demand for office floor space like 255 George St,” added O’Connor.
O’Connor added that these latest leases secured for the CBD office are a reflection of the longstanding impacts of the increase in working from home since the onset of the pandemic on quality workplace offerings.
“Based on previous market cycles, Sydney and Melbourne CBDs recorded an average increase in occupied space of 5.6% and 5.5% respectively over the two years following a major downturn. We are expecting the office to bounce back strongly post this latest lockdown,” concluded O’Connor.