More than 21,100sqm in new or renewal leases signed up on behalf of Investa Office
Recent leasing successes at 120 Collins Street have resulted in 27 new leases and reinforced tenant demand for quality, location and amenity, as the premium grade Investa Office (“Investa”) building nears 100% occupancy.
Investa, alongside leasing agents Colliers International and Knight Frank, has facilitated 12,807sqm of new leases within the building as 2015 drew to a close. A further 8,384sqm of space has been either renewed or taken by existing tenants expanding within the building.
Simon Hale, Director of Office Leasing at Knight Frank, said these 27 new leasing deals were a result of the high level of service and amenity being offered at 120 Collins Street.
“It’s been great to see a resurgence in whole and multiple floor occupiers committing to the building in 2015, including Crownbet (4,537sqm), Crestone Wealth Management (1,377sqm) and Meydan Group (1,053sqm),” Mr Hale said.
Ben Christie, Colliers International Director of Office Leasing, said: “Equally as pleasing has been 120 Collins Street’s ability to accommodate part-floor requirements due to the ease associated with subdividing the building’s central core floorplate.
“Organisations such as State Street (496sqm) and Marubeni (419sqm) have led a flurry of smaller tenants into the building, with occupiers ranging from 55sqm to 661sqm accounting for 4,367sqm of new leasing deals in the building."
The most notable renewals negotiated at 120 Collins Street during 2015 included Future Fund renewing for a further 7 years (3,091.5sqm) and Standard & Poors also renewing for a further 7 years (1,857sqm).
Claire Clark, Investa Office’s General Manager at 120 Collins Street, said Investa’s dedicated on-site management and concierge team providing tenants with a 5-star hotel style service, together with the high quality of the on floor refurbishments, was a key factor in motivating tenants to renew their leases rather than relocate.
“We have also invested heavily in upgrading the building services, ensuring optimal comfort and building performance,” Ms Clark said.
Works have included a new building management system, replacement of 5 of the original chillers and the ongoing comprehensive lift refurbishment of the building’s 25 lifts.
Mr Christie said strong activity by small-to-medium tenants was a positive indication for the Melbourne office market looking ahead in 2016.
“During the GFC, we saw a drop in demand in this segment of the market, which typically drives Melbourne and is a strong indicator of the health of the office leasing market more broadly,” he said. “We are now back at near-peak levels for small-to-medium sized deals. Positive sentiment and strong business conditions among small-to-medium enterprises is a great sign for the market looking ahead."
Pete Carstairs, Investa Office General Manager, Research, said: “The premium grade market in Melbourne has endured a tough 24 months due to high vacancy rates and weak demand. Tenants remain focused on affordability, and as a result the majority of leasing activity has occurred in the A grade market. However, the quality of accommodation and location at 120 Collins Street, combined with the focus of the management team and continued investment in the asset has resulted in leasing success which outperformed the broader market.”
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