This article is from the Australian Property Journal archive
MORE tenants are committing to CBD office space across the eastern seaboard as workers return to the office following the Omicron wave.
More than 3,330 sqm of leases have been struck across six deals in Singapore-based private equity real estate firm Firmus Capital’s 127 Creek Street tower recently.
Co-working space Christie Spaces, cloud solutions company Elmo Software and corporate advisory firm W Wightman Advisory have all taken up space at rates of up to $680 per sqm.
Christie Spaces leased the biggest space, at 1,580 sqm for two and a half years. Elmo Software leased 426 sqm for five years, while W Wightman Advisory has leased 246 sqm for six years. The remaining three deals all saw tenants sign five-year leases.
Knight Frank’s Daniel Byrne brokered the deals within the 24-level tower.
“Our research shows 83% of active tenant briefs in the market have a preference for fitted space. We expect this trend to continue as we evolve into a post-pandemic environment where there is an emphasis on convenience and lifestyle prompted by COVID-19,” Byrne said.
Firmus has made consistent upgrades to the B-grade building since its acquisition in 2018, following on from a major renovation in 2014. Recent upgrades include revamped lift lobbies and bathrooms, the installation of sprinklers, LED lights and an after-hours air-conditioning system that tenants can operate remotely. As a result, the building’s NABERS rating has risen to 5 stars for energy and 4.5 stars for water.
Property Council data shows Brisbane office occupancy rebounded from just 13% in January to 41% in February.
Good signs for landlords have also been seen in Melbourne, where tenants are leasing up CBD space, and in Sydney, where tenant briefs show businesses are looking for larger spaces and driving up absorption levels.
