- Cost per seat considerations no more
- Flight to quality now at cruising altitude
- Several leases across Brisbane and Sydney signed
Packing workers into offices like sardines is a thing of the past, with work from home making the scene a little more free range. Also gone are the days when decisions pivoted around cost per seat:
“In 2019 financial considerations for tenants were largely dependent on the cost per seat, which ultimately led businesses to want to maximise the number of seats they could fit in the office,” said Sarah Hughes, National Director, Tenant Advisory & Occupier Services, Colliers.
“We are now seeing tenants place a growing focus on other measures outside of the traditional norm, for example, the cost impact (whether positive or negative) of a building’s ability to help the tenant meet their environmental, social and governance (ESG) commitments.
“This is part of a shift redefining the value of office space for enhanced employee experience and value alignment, which also incorporates an increasing emphasis on diversity elements, including gender-neutral bathrooms and multi-purpose rooms for prayer and breastfeeding, in addition to recreational areas and residential/hotel style fit-outs.
Sarah Hughes, National Director, Tenant Advisory & Occupier Services, Colliers
“The office is now much more than a tool to facilitate work – it is now a place you go to undertake tasks that you cannot complete from your home (office) whilst enabling collaboration and connection and providing a sense of belonging that ultimately fosters a positive culture, in an era of varied working styles.”
Fujitsu, and government agency sign leases on Brisbane’s Eagle Street
Over 4,000 square metres of office space has been leased out to Fujitsu, a Federal Government Agency, and WT Partnership.
The latest Brisbane CBD office leases come as the property was recently refurbished, boasting a new lobby, ground floor cafe, first class end-of-trip facilities, and sustainably managed green features by Junglefy.
Fujitsu signed up for 837 square metres of space on level 13, while the Federal Government has leased levels 18 and 19 totalling 2,920 square metres, and WT Partnership has leased 376 square metres on level 13.
The new leases follow lease renewals from QIC and McCullough Roberston, which totalled more than 11,000 square metres plus combined.
The leasing deals were negotiated by co-appointed agencies Knight Frank and CBRE, with Knight Frank’s Mark McCann saying: “There is a resurgence in corporate office activity and requirements in the Brisbane CBD at present which is largely due to new workplace designs being implemented as part of a corporate strategy to create an appealing workplace environment for staff to return to the office.”
“Office assets like 66 Eagle Street that have invested in recent capital upgrades to enhance on-site amenity are benefitting from this renewed uptake in leasing activity.”
CBRE’s Coen Riddle said, “66 Eagle street positions itself as an enticing office accommodation solution for high-calibre businesses who are drawn to its premium lobby experience combined with its unrivalled on-floor workplace opportunities.
“The current focus on employee wellbeing as well as staff retention and attraction has led to many occupiers recentralising to core CBD locations such as 66 Eagle Street.
“Assets positioned around the iconic Fig Tree precinct will continue to attract aspirational organisations seeking to improve staff-client engagement.”
Equifax to be Blue & William anchor tenant in North Sydney
Keppel REIT Management and Lendlease recently announced global data, analytics, and technology company Equifax will be the anchor tenant for the new office development Blue & William.
The development recently reached structural completion, with Equifax to occupy a circa one third of the buildings net lettable area, which is approximately 4,350 square metres across levels 5 to 7.
Designed by global architecture and design studio Woods Bagot, the development will
provide panoramic views of the Sydney Harbour, a landscaped wellness garden and further open spaces, an on-site café, a premium lobby and end-of-trip facilities to support healthier ways to commute and connect.
The building is designed to achieve the 5 Star Green Star Design and As Built Rating by the Green Building Council of Australia, as well as the 5.5 Stars National Australian Built
Environment Rating System (NABERS) Base Building Energy Rating.
Equifax’s Melanie Cochrane said: “Equifax is excited to be the anchor tenant at Blue & William, North Sydney, providing a fantastic opportunity to bring our Sydney based team together in one location.
The new building design and fitout, will provide for greater collaboration, creativity and innovation across our teams to support our customers and help us attract the best talent.
In addition, the move helps us reduce our footprint by bringing our teams together into one 5-Star Green Star and 5.5 Stars NABERS space which supports our sustainability commitments.”
Big four moves to new home
Colliers’ Cameron Williams noted that even companies famed for flexible and hybrid working have invested into new office space to boost their employee value proposition.
“Deloitte’s upcoming move to AMP’s Quay Quarter Tower (QQT) in Sydney and Dexus’ new Waterfront Precinct Brisbane Development in 2027, will see the firm’s New South Wales and Queensland employees occupy brand new buildings with the latest ESG features,” Mr Williams said.
“Deloitte’s new Sydney headquarters is more efficient, with physical connection via staircase between the firm’s floors.
“Pre-commitment to become the anchor tenant at the Waterfront Precinct Brisbane Development provides Deloitte a great opportunity for a premier location and will provide significantly more space than their current Riverside Centre premises.”
Tech and media are also seeing office upgrades, according to Colliers’ Adam Howard:
“In recent years we have facilitated fit-outs for major tech and media offices, ranging from 11,000 to 22,000 square metres, which include features such as an additional five to 10 percent dedicated recreational/dual purpose space and an increasing number of smaller rooms for digital meetings,” Mr Howard said.
“Tech giants are also moving towards a residential/hotel feel, with a heightened focus on vibrant and biophilic design underpinning inviting spaces for people to feel comfortable in their workspace.”
