This article is from the Australian Property Journal archive
ASX-listed real estate investor and fund manager, Cromwell Property Group has secured 12 tenant lease renewals across three of its major Brisbane office assets to businesses taking advantage of attractive market conditions to improve their accommodation and staff amenities.
Many of the tenants who renewed their leases at CBD buildings 400 George Street and 200 Mary Street, and HQ North in Fortitude Valley, committed to long-term deals.
“The Brisbane office market has certainly normalised since the beginning of the year. We are seeing renewed confidence, with companies now committing to long-term leases similar in length to pre-pandemic levels,” Cromwell’s head of property, Bobby Binning said.
Property Council data showed Brisbane’s CBD vacancy rate decreasing marginally in the six months to July to 13.5%, while vacancy along the fringe tightened from 16.6% to 16.1%.
Cromwell has retained Cooper Grace Ward Lawyers for an additional seven years over three levels at 400 George Street after recently completing a $2.4 million end-of-trip facility upgrade at the building.
“Across our portfolio, we have invested in further improving the amenity in response to changing tenant-customer requirements and evolving work practices.
Binning said long-term lease renewals “are a testament to the ongoing importance of the office to company culture”.
Chris Ward, managing partner of Cooper Grace Ward, said, “Although we have many team members working from home at different times, it is still vital for us to have a high-quality office environment where we can collaborate with each other and our clients”.
Betchel and Sedgwick have finalised long-term lease extensions at Cromwell’s HQ North Tower, which has undergone a $1.5 million upgrade with a 110 sqm expansion of the lobby, a 60 sqm green wall with over 2,000 live plants, full internal and external retiling, an acoustically designed café space and a new entrance awning.
Betchel occupies 1,910 sqm on level three and has renewed for a further four years, while Sedgwick has committed to 1,118 sqm on level four for an additional five years beyond their current lease expiry.
At 200 Mary Street, LogiCamms Australia, Boyd Legal, ERA, SRK Consulting, AGL and Veitch Lister Consulting have all re-signed, while Vena Energy, Northrop and The Property Communications Group have also taken up new space in the building.
LogiCamms Australia will become the largest occupant at 200 Mary Street with their five-year renewal including 520 sqm of additional space, in addition to their existing occupancy on levels 15 and 16.
