255 george street
255 George Street is located in the heart of Sydney’s CBD. Image supplied.
  • The deal takes the building to 99% leased
  • The ATO will occupy 13,000sqm
  • Building is currently undergoing a $70M refurbishment

AMP Capital has announced the Australian Tax Office (ATO) has signed a lease agreement for over 13,000 square metres across the landmark 255 George Street, Sydney building.

The 10-year lease will cover nine floors, with tenancy beginning in a year. The building is owned by investors in AMP Capital’s Wholesale Office Fund (AWOF). The deal means the building is now over 99% leased.

Sydney is currently undergoing a bounce in workers and businesses returning to the CBD.

Kylie O’Connor, AMP Capital Global Head of Real Estate, said she was delighted to welcome the ATO as new tenants and is proud the fund has delivered almost full occupancy ahead of schedule.

“In the current environment, this lease demonstrates that quality, well-located offices that cater for a shift in tenant demand to buildings that provide greater amenities, the latest health and wellbeing features and high sustainability credentials, will benefit from ongoing strong demand.”

Kylie O’Connor, AMP Capital

255 george street internal
Image supplied.

New leases have also been signed by AXA Investment Managers and People + Culture Strategies. This also follows the Bank of Queensland’s 10-year lease for almost 5,800 square metres and signage rights, which was signed in March of this year.

The landmark building is currently undergoing a refurbishment to the tune of almost $70 million. Upgrades include an architecturally designed lobby with various work zones to facilitate flexibility, along with a concierge, new end of trip facilities a wellness studio. Lobby workers are due to be completed by the end of next year.

“The integration of collaborative spaces and a greater emphasis on amenities that promote employee health & wellbeing including social distancing is expected to lead to a reversal of the densification trend in offices and an increase in demand for office floor space like 255 George St,” Ms O’Connor added.

“The recent leases signed for 255 George St are another indication of the overstated impact of work from home flexibility on high quality office spaces.

“Based on previous market cycles, Sydney and Melbourne CBDs recorded an average increase in occupied space of 5.6% and 5.5% respectively over the two years following a major downturn. We are expecting the office to bounce back strongly post this latest lockdown.”

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