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.