Fund manager AMP Capital is pitching a boutique office building, which is part of its giant Circular Quay development, at tenants who might otherwise be tempted to move to converted heritage buildings in fringe suburbs.
As the COVID-19 pandemic continues to put a cloud over CBD vacancy rates, AMP has announced that 2280 square metres of office space over three levels is available for lease at 11 Young Street, which is part of the Quay Quarter project. The building is tipped to be ready for occupation in April 2021.
The three levels – at 760 square metres each – form the office component of the four-level 11 Young Street building, a mixed-use structure that includes an arcade on the ground floor and connects to AMP’s “Quay Quarter Lanes” precinct, which includes 104 luxury apartments.
The arcade will run through the site and house retail, cafes and restaurants.
AMP is pitching it as an opportunity to lease the entire building or separate tenancies.
“The building balances the services and technology required to run a global business, while providing a more boutique experience for staff and clients,” said Luke Briscoe, managing director office and logistics at AMP Capital.
He said that rents were currently between $1100 and $1200 a square metre net, with leases of “a minimum [of] five years [and] ideally seven to 10 years”.
The leasing campaign comes as the Australian Financial Review reports that the number of subleases available in the Sydney CBD has surpassed that tipped into the market during the global financial crisis and is fast approaching the record highs of the 1990s recession.
Mr Briscoe said the pandemic hadn’t translated to a reduction in rents at 11 Young Street.
“We haven’t had any push-back on the face rent though we have adjusted the incentives to meet the market. Our competition is stay-put options; landlords at present are offering attractive renewal deals with flexible terms or fitted out stock.”
The leasing campaign is being handled by Cushman and Wakefield’s Joel Duffy and Antonia Foweraker.
Companies already showing interest in the building include those from the legal, finance and IT industries.
“The typical tenant looking at this asset is one who wants to balance the services and technology required to run a global business, while offering a more boutique proposition to their staff and clients,” Mr Briscoe said.
He said that was rare to find a “boutique” A-grade development of similar scale within the CBD.
“This building offers a tenant who is looking for a brand new, A-grade office in a prime location, the opportunity to be a whole-floor occupier in a boutique office asset offering all of the amenity associated with a premium asset. The boutique offering is one usually found in the city fringe,” he said.
Building amenities include a ground-floor lobby and end of trip facilities. Other features include Juliet-style floor-to-ceiling windows on each floor which can be opened for ventilation.
The building is part of AMP’s Quay Quarter precinct, spanning two city blocks and centred on the Quay Quarter Tower at 50 Bridge Street.
Australia’s first skyscraper, the AMP Building at 33 Alfred Street, is being refurbished as part of the project.
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