This article is from the Australian Property Journal archive
PROFESSIONAL services firm Deloitte is getting ready to move to its new headquarters at the $230 million CBW tower, but the company has some housekeeping to do.
Deloitte is set to anchor CBUS Property’s CBW complex on the corner of Bourke and Streets. The firm will occupy the majority of the space at the 19-level tower at 550 Bourke St which has been completed, occupying the top 12 and a half floors totalling 18,000 sqm.
CBUS Property told Australian Property Journal construction of the building is complete and that the tenant (Deloitte) has begun fitting out the floors.
Deloitte is expected to move in around February 2009 and begin its 11 year lease.
But the firm has not found a tenant or a number of tenants to sublease the space it is occupying at the Grocon owned QV Precinct at 180 Lonsdale St.
In March this year, the firm decided to move from QV – for the second time in five years after it relocated from 505 Bourke St following an 11 year stint.
Deloitte said it because it had outgrown the space after almost doubling in size, from 787 to 1425 employees. It was unable to secure additional space at QV which is also tenanted by resources giant BHP Billiton and Telstra’s subsidiary Sensis.
Deloitte is believed to be paying as much as $400 per sqm for 13,500 sqm at QV. According to sources, when the firm moved in 2004 and it signed a $55 million, 12-year lease agreement. The lease is due to expire in 2017 and has $48 million remaining.
Sources told Australian Property Journal that the firm has been in negotiations to sublet the space since the middle of this year.
It was widely tipped that BHP Billiton and Sensis which leases 22,000 sqm and 12,000 sqm respectively, were looking to sublease the space from Deloitte.
“Other parties have expressed interest in the space but there hasn’t been any deals signed.
“And the time is ticking for Deloitte, if it doesn’t lease the space it has will have a hefty bill to foot at QV and it will be also paying rent at CBW,” the industry source concluded.
Australian Property Journal
