Spaces secures two flagship premises in Sydney and Melbourne CBD

Colliers International’s Tenant Advisory team helps leading flexible space provider secure two new centres.

Off the back of strong demand and aggressive take up in their existing centres, leading flexible workspace provider IWG plc has secured two new centres for its fast growing brand, Spaces, in Australia’s most tightly held CBD markets. 

“We are very excited about the growth of our business both locally and globally, where we are opening three to four new Spaces centres every week. Whilst we are also seeing many new entrants into the market, we are confident that this is being outpaced by the expansion of our market place and customer base, with the take up of flexible space still only at the early stages of the growth trajectory,” said Simon Van Grootel, Development Director Australia at IWG.

“Working closely with the Colliers Occupier Services team allows us to strategically focus on selecting the right brand from our portfolio for the best opportunity. This could be a Regus Centre, a larger footprint Spaces Centre or excitingly introducing a No.18 or Signature Centre to Australia. The one size fits all mentality has passed and we are conscious of continually evolving to meet these changing needs,” said Simon.

Colliers International’s Joe Ward and Tim Farley represented IWG plc in these two landmark leases that will see two new Spaces centres opening within some of Australia’s leading commercial office buildings. 

Spaces will occupy 4,500sqm over three podium levels at Investa & Gwynvill Group’s 60 Martin Place, and another 7,000sqm over towers One and Two at Lendlease’s Melbourne Quarter in Melbourne. 

Joe Ward said IWG plc had been seeking a flagship premises for Spaces in Sydney CBD for around two years. “The attraction for IWG plc was a premium grade, landmark building in a central iconic location. 60 Martin Place was ideal due to it’s positioning amongst tech and professional business services, and the lower levels mean the new Spaces centre will have a visual connection to Martin Place,” said Joe. 

“This was a hotly contested space, and the landlord was keen to secure the right flexible workspace provider for the building to match the quality of the building and align with the future tenants expected to occupy this new 31 level tower”.

In Melbourne, Lendlease undertook an Expressions of Interest process to identify a preferred flexible space provider and partner for the Melbourne Quarter precinct, which will consist of three commercial office towers and a combined total of approximately 130,000sqm of Net Lettable Area.

“Lendlease consulted with their anchor tenants with regard to choosing the right flexible workspace offering for this precinct, with the aim of providing their occupants with both traditional coworking space as well as business-lounge style casual meeting spaces within the building lobbies,” explained Tim Farley. 

The flexible workspace sector across Australia has grown significantly over recent years despite low vacancy said Rowan Humphreys, Director of Tenant Advisory at Colliers International.

“Despite near record low vacancy and limited availability, 2018 saw an absolute explosion of deals in the in Sydney CBD with over 30,000sqm of deals concluded (including several pre-commitments for buildings yet to be completed), representing a 47% increase in the size of the Flexible Workplace market,” said Rowan.

60 Martin Place is due for completion by December 2019 with the new Spaces centre expected to open by the end of Q1 2020. One Melbourne Quarter is currently being fitted out, with expected completion by mid-2019, while Two Melbourne Quarter is scheduled for July 2020. 

“Colliers International is proud to have assisted Spaces secure flagship premises in what are best-in-class projects in Australia’s two biggest, and mostly tightly held, office, markets,” Tim Farley said.  
 

Related Experts
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Joe Ward

Director | Tenant Advisory

Sydney CBD

Joe is a Director within the Tenant Advisory team  in Sydney handling major metro market requirements and has  22 years experience in the  commercial  property industry.  Engaging Joe puts  an  industry  insider  on your team,  provides an insight into what others in your industry are doing, local market dynamics, options, risks and opportunities.

Joe's expert knowledge and experiemce integrates, strategy, risk analysis,   transaction  management and  negotiation with  clients  business needs and aspirations in delivering the most effective outcomes.

Joe can,  review and restructure terms  your existing premises  provide a  stay vs go analysis,  and assist with long term planning, multi site requirements,  consolidation and  liability reduction.

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Tim Farley

National Director | Tenant Advisory

Melbourne CBD

Tim is a National Director of the Occupier Services Tenant Advisory division based in Melbourne.  With a career in corporate real estate spanning over 19 years and successfully running his own Tenant Advisory business, Tim brings extensive industry experience with a strategic and organised approach to business. 

Tim’s expertise includes:

•Lease & Agreement For Lease

•Market Rent Review

•Acquisitions (Leasehold & Freehold)

•Property Disposal (Strategy, Planning & Management)

•Lease Legacy (Risk & Liability mitigation)

•Strategic Portfolio Review

•Lease Assessment & Restructure

•Qualitative and Quantitative Analysis

A sample of clients Tim has assisted include: Grant Thornton, URBIS, Financial Ombudsman Service, CGI Technologies Australia, McKinsey & Company, NEC Australia, Bunnings Limited, Coles, Fly Buys, Regus, Victoria University, Acknowledge Education, Vic Govt., Commonwealth Govt., Sony Pictures Entertainment, Porter Davis Homes, DB Schenker, Telstra, NAB, EQUINIX, Equity Trustees, Medibank, Orica Limited, Asciano, Philips.

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Rowan Humphreys

Director | Tenant Advisory

Sydney CBD

A Tenant Advisor with Colliers International who specialises in Sydney’s office markets and has a keen interest in the Tech/Media and Flexible Workspace/Co-working sectors.

With 12 years’ experience exclusively representing occupiers of commercial real estate, Rowan has an established professional network in the property industry and a strong track record of successful transactions.

Rowan is passionate about helping his clients achieve their business objectives by providing advice, strategy and representation throughout the entire leasing process; from sourcing and evaluation through to successfully securing his client's preferred property.

As the leader of Colliers’ Flexible Space Practice Group in Australia, and member of APAC Flexible Space Practice Group, Rowan represents and advises operators of flexible space (serviced office/co-working) to source and secure new sites or negotiate lease renewals and recently contributed to Colliers annual APAC Flexible Workspace Report 2018. http://www.colliers.com.au/find_research/office/apac_flexible_workspace_outlook_report_2018/

Rowan has represented and advised a multitude of Tech companies throughout his career, leads Colliers’ Tech Practice Group in Australia and is a member of Colliers’ APAC Tech Practice Group. Rowan enjoyed visiting the offices of major Tech companies in San Francisco to gain insights about how these firms use their workplace to attract and retain talent.

Rowan has an extensive track record of successful transactions and assignments, which are regularly featured in the Australian Financial Review and Sydney Morning Herald, and he is known in the property industry as a deal-maker.

The landlord has an expert negotiator on their side, shouldn't you?

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Doug Henry

Managing Director | Occupier Services

Sydney CBD

Doug has over 30 years’ experience in occupier and institutional real estate and currently leads the Australian Occupier Services business at Colliers International. That comprises business specialising in occupier needs: tenant advisory, portfolio and transaction management and workplace management services. Doug's focus is on building long term strategic partnerships with major occupier clients and developing a highly coordinated approach to account management and delivering Real Estate solutions that align to business strategy.

Doug's extensive experience in Workplace Strategy, Property Management, Occupier Negotiations and Integrated Facilities Management and Account Management enables him to focus the considerable resources of the Occupier Services team to achieve measurable results for the clients he works with.

Specialties:

  • Tenant Advisory
  • Industrial Advisory
  • Project Management
  • Facilities Management
  • Occupier Technology
  • Outsourcing
  • Workplace Management
  • Account Management
  • Integration of business units
  • Occupier Research
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