Charter Hall chases tenants by investing almost $5 million in lobby of North Sydney office building

Features include a ‘wellness’ area with free yoga and pilates, an auditorium for events that is free for tenants, a non-profit café, an artists’ studio and exhibition space.

Events such as Wellness Weeks, after-work drinks and morning teas are held in these facilities for tenants’ staff.

An artist’s studio and exhibition space forms part of the new lobby. Photo: Supplied

As the café is now the only tenant in the lobby, compared with the multiple office suites that were generating returns before, the multimillion-dollar fitout was an investment decision that was not about driving rents.

“They’d be forgoing rental to look after their tenants in terms of giving them better amenity, a better place to look and feel and have this great open space to work in – to give them a better experience,” leasing agent Michael Arcus, from Colliers International, said.

“North Sydney’s office market remains buoyant with the attraction of CBD occupants and it’s exciting to see landlords going to extra lengths to attract and retain tenants.”

Warwick Mayer, Charter Hall’s regional portfolio manager for office, said the decision to replace offices with communal facilities was about differentiating the property from others in the market.

“We believe the benefit of the ‘third space’ the lobby provides (by way of additional meeting space etc) for our tenant customers will help to retain our existing customers and attract new tenants through creating a point of difference for the asset,” he said.

A cafe is the only tenant on the ground floor. Photo: Supplied

The feedback of the building’s workers on the lobby redesign and facilities were incorporated into the project, which took just over a year to complete.

“We wanted to create an inspiring and innovative space and knew the mostly millennial workforce of our tenant customer Group M would provide fresh and exciting ideas,” Mr Mayer said.

“We held design workshops and surveys to ascertain exactly what our tenant customers wanted and needed in a ground floor lobby. The aim was to provide a space that can be utilised as an extension of our customers’ work space to encourage flexibility and connections.

“Vibrant plants throughout create a relaxing and healthy environment for the building’s tenants, and free Wi-Fi encourages occupants to linger in the space.”

What the lobby looked like before the major refurbishment. Photo: Supplied

The lobby had multiple tenanted office suites before the new fit-out. Photo: Supplied

Another new addition in the lobby space is the non-profit Symbol Café, which donates 100 per cent of its profits to a charity of the customer’s choice.

“A not-for-profit cafe is an extremely rare entity – I have never leased anything of this nature throughout my 15 years in the industry,” Mr Arcus said.

Mr Mayer added that having an operator which took no profits allowed their tenants to feel a connection through the building community.

Charter Hall’s strategy reflects the evolution of workplace trends, where employees increasingly choose how and where to work.

“As the way we work changes ever more rapidly, Charter Hall is responding to our customers’ evolving needs. We are designing flexible workspaces that spark innovative thinking, create a better work experience, and enhance productivity,” Mr Mayer said.