This article is from the Australian Property Journal archive
ALCOHOLIC beverages company Lion Nathan has signed up as a major tenant to Coombes Property Group's theskyvue development in the Sydney CBD.
Lion Nathan has committed to lease just over 5,000 sqm of office space in theskyvue project at 68 York Street. The deal consolidates existing Lion Nathan CBD offices at 363 George St and 20 Hunter St.
The brewer has committed to a 10-year lease over five of the mid-rise floors in theskyvue commencing in July 2008.
Negotiating agents CB Richard Ellis’ senior director of office services Mark Clapham said the deal accounted for around 35% of the total office space in the project.
He added that about 8,500 sqm of office space is remaining and negotiations are underway with prospective parties on all the remaining office floors.
Clapham said a major drawcard for Lion Nathan had been level seven of the building which includes a large balcony area, earmarked to become the social hub of the firm’s office space.
The commitment has been signed amid signs of heightened activity in the Sydney office leasing market.
CBRE’s latest research shows that prime net face rents in the CBD increased by 6.3% in the 12 months to March 2007. Net effective rents increased by 8% over the same period as tenant incentives continued to shrink.
“Lion Nathan is the first pre-commitment across the line for 2008 in Sydney CBD.
“There is a lot of tenant enquiry welling in the background which should result in a further strengthening in the office leasing market in the latter part of this year,” Clapham said.
theskyvue also offers approximately 4,000 sqm of prime retail space off both George Street and York Street. Coombes Property Group is handling the leasing of the retail component and is well progressed in finalising leases over those retail areas.
Property Beyond’s Mark Daniel represented Lion Nathan in the lease negotiations.
Grocon is constructing the building, which is expected to be complete in May 2008.
Australian Property Journal
