As Sydney CBD office leasing activity picks up with many corporate tenants assessing and acting on their commercial office space needs for 2022, a flurry of activity is occurring on Martin Place.
This includes 14 Martin Place Sydney, with tech lender Plenti leasing a full floor of 875sqm for five years, negotiated by CI’s Director of CBD Leasing, Ben Kardachi. Stonebridge Property Group has leased a 165sqm suite also on a five-year term, negotiated by Colliers International. This activity sees the eight-level heritage facade office building at 100% occupancy for the first time in three years, signalling the returning strength of the CBD market.
Building owner and valued CI client, Abacus Property Group, is also transforming part of Level 7 in the asset into its “Flex by Abacus” offering to provide a more flexible and innovative experience for its customers in the post-COVID environment. The new solution to workplace flexibility features fully fitted-out office space offered on flexible lease terms. The renovated, modern spaces include sophisticated technology and breakout and kitchen facilities as an extension of the building amenity. Flex by Abacus is aimed at catering to both smaller customers who may require overflow space as a result of continual business recovery; and larger existing customers who are seeking additional communal meeting facilities on an ad-hoc basis.
Meanwhile, within the nearby 4 Martin Place, Stanton and Stanton Lawyers has leased the whole level 5 of 517sqm on a 10-year term, also negotiated by Mr Kardachi. Like 14 Martin Place, Abacus Property Group is actively investing in 4 Martin Place in response to the changed market, in this instance being the growing demand for pre-fitted out space. The diversified Australian REIT has just completed building speculative fit-outs within three of its smaller suites in 4 Martin Place (110, 145 and 250sqm). Furthermore, they are refreshing two suites with existing fit-outs, of 280sqm and 520sqm to offer a range of fitted suite to whole floors.
Mr Kardachi said flexibility was a key driver for tenants in the current office environment. “Whether it’s flex space with overflow options that allow for growth beyond their current space, or a pre-fitted out option that’s ready to move into with less lease obligations, the need for agility and adaptability is stronger than ever. Options such as pre-fitted out space in particular, allow tenants to respond to the market quickly, being able to move in or out of the space faster, reducing some lease obligations and often being struck on shorter lease terms.
As market activity continues to gain pace, many landlords like Abacus are demonstrating their response to these market changes and investing in their assets to cater for the varying needs of today’s tenant,” Mr Kardachi said.
We anticipate occupancy rates will steadily increase following the easing of restrictions. Prior to the current lockdown, rates increased steadily to its yearly peak in May at 68% (source: Property Council of Australia).
For further information, please contact: Ben Kardachi, Director, Office Leasing
M: +61 419 230 278