This article is from the Australian Property Journal archive
LENDLEASE has signed up Asia-Pacific flexible workspace provider The Great Room for over 2,356 sqm at its One O’Connell Street, as landlords welcome flexible workspace operators to fill up their office assets.
An overwhelming number of flexible office operators in the Asia-Pacific region expect demand to rise, a recent survey showed, as businesses look for adaptable and collaborative spaces that support their hybrid work models following COVID, and become increasingly risk-averse when it comes to the length of their lease terms.
The Great Room, which says it is “inspired by hotels and business clubs”, will open across levels 14 and 15, following on from the opening earlier this year of its inaugural Sydney destination at Level 29, 85 Castlereagh Street.
“Collaboration with Lendlease for long-term investment and value creation ensures the new space at 1 O’Connell Street will reflect a unique premium product and deliver sustainable profitability,” said The Great Room’s CEO Jaelle Ang.
“Our experience across Asia enables us to show professionals what they want before they know it, which goes beyond design to incorporate immersive experiences with leading lifestyle, wellness, business and consumer brands, to achieve a higher-than-average occupancy rate for flexible workspaces.”
In the Sydney CBD, desk rates were up 7% to $1,000 per desk per month over the past year, according to Rubberdesk – and the rate is even higher in more in demand locations such as Barangaroo, where the rate was at $1,301 per desk.
One O’Connell is co-owned by Lendlease’s APPF Commercial fund and a sovereign wealth fund.
“The Great Room will be a much-welcomed addition to One O’Connell. As Sydney’s CBD continues to evolve, the demand for versatile flexible workspace solutions that elevate the working experience will continue to grow,” said Scott Meehan, head of asset management, Lendlease Investment Management.
“This offering aligns to One O’Connell’s ethos of providing diverse tenant partners with an environment that fosters collaboration, community, wellness and productivity.”
The Great Room offers members activations and events such as a Monday Breakfast Club, Great Thirstday monthly networking drinks and Spend the Night, a series of panel discussions. A weekly Turn Down Cart serves refreshments, similar to a turndown service in a hotel.
Founded in Singapore, The Great Room has 12 locations across Asia-Pacific, including Singapore, Bangkok, Hong Kong and Sydney. Acquisition by New York based co-working business Industrious two years ago means members of The Great Room have access to 160 destinations by both brands, spanning Asia Pacific, Europe, North America and the United Kingdom.
Co-working and flexible workspace provider Wotso recently announced it will open its first Melbourne venue early next year, after purchasing a whole Melbourne CBD floor in the historic Bank House.
