- The Energy Queensland building was a purpose-built site which includes a large central void. This affects the ability to hand back space as there is no opportunity for it be re-let to another tenant.
- The current deal structure had Energy Queensland paying additional rent for exclusive use of balconies and outdoor areas that were not being used by staff to an extent that justified the cost.
- Similar to other companies, Energy Queensland wanted to continue to create a desirable workplace for staff with functional and modern amenities in a prudent fashion without a need to substantially increase CAPEX cost.
- Colliers Tenant & Strategic Advisory teams were appointed to conduct a stay vs go analysis of Energy Queensland's Newstead headquarters.
The brief was to analyse the renewal proposal submitted by the landlord for the 28,000sqm footprint maintained by Energy Queensland in 26 Reddacliff Street, Newstead.
- After undertaking a review of the proposal while working with Energy Queensland to understand their key drivers and how we could maximise their use of the tenancy, it was decided that the ideal outcome would be to reduce their total NLA, refurbish the base building amenities and blend and extend their lease.
- A blend and extend deal was struck with the landlord which included the balcony space and a portion of the foyer no longer being included in the NLA, an upgrade of building amenities and the installation of a new EOT.
- Additional staff amenity was also provided by the landlord to allow for Energy Queensland to further its culture in the workplace and ensure that they continued to put their staff first.
Please note that the exact terms of the deal are confidential.
If you would like to know more about this case study and how our team might be able to assist your organisation, please contact Nick Davies.