Refurbishment encourages spike in leasing deals as activity surges early in 2016
Charter Hall’s office building at 5 Queens Road is close to fully leased following a spate of leasing deals in recent months.
Almost 3,000sqm has been leased at 5 Queens Road on the back of major refurbishment works by Charter Hall, taking the building to around 90% leased in the first two months of 2016.
Colliers International’s Ben McKendry and Matt Cosgrave, with conjunctional agent Kenny Thorburn, have negotiated successive leases to Live Person (800sqm) and Mediq (460sqm) in addition to and Unico leasing additional space (1,700sqm) for a combined 2,960sqm.
These tenants will join fellow tech firms Verisign and Vixtel in moving to Charter Hall’s new-look 5 Queens Road.
Mr Cosgrave said the building had become a hub for technology firms, with strong early demand for the remaining 2,000sqm (approx.) that is available.
“Charter Hall’s extensive refurbishment incorporated new showers, lockers and change facilities on the ground floor, a vibrant new ground floor café and substantial upgrades to building services which have taken the building to a 5 Star NABERS rating – the highest in the precinct,” Mr Cosgrave said.
“Significant ugrades to the foyer and end-of-trip facilities which will include bike repair station, towel service and multi use activity area are set to commence in the coming weeks and these works will help 5 Queens Road redefine the standard of A grade accommodation within the St Kilda Road market."
“The widespread refurbishment allowed Charter Hall to offer tenants all amenity of a CBD building, but in a fringe location.
“Early demand for the remaining space has been strong as A grade options within St Kilda Road are hard to find."
Mr McKendry said the immediate precinct performed well in the second half of 2015, into 2016, in terms of leasing activity.
“As is the case in the CBD, owners who are dividing up floors are seeing strong leasing results in terms of time to lease, reduced incentives and increase face rents,” he said. “Likewise, owners who have invested in refurbishing and upgrading their buildings are reaping the rewards, and will continue to do so in the year ahead.
“Owners, however, need to keep investing in their buildings to give tenants value for money as increased rents mean more competition from surrounding locations. Charter Hall is leading the market in this regard.”