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MAKING SPACE FIT FOR BUSINESS – 4 December 2017

Katie McDonald – 4 December 2017
Posted in BusinessNews Paper and Online

 

 

CBD SHIFT
Hexagon Mining is another business to consolidate its several Perth locations under one roof in the CBD.

Hexagon will occupy 1,200 sqm of space within Primewest’s Australia Place on William Street from March 2018. The seven-year lease was transacted by Sheffield Property Group.

Sheffield associate director Roly Egerton-Warburton said the office fit­ out had been constructed as a ‘speculative fit-out’ – a fit-out built in advance of securing the tenant – which had spared Hexagon the task of project managing a fit-out themselves.

This was part of a speculative fit-out strategy, which Sheffield specifically de­signed with Primewest for Australia Place, and had been rolled out across four floors (1,200 sqm each) of the building, he said.

These floors have since been leased – two by Sheffield, securing a seven-year lease with Resolute Mining as well as Hexagon.

“If you look at the Perth leasing transactions that have taken place in the last few years, you’ll see most have transact­ed in fitted space.” Mr Egerton-Warburton said.

“The landlord may be spending capital in advance but the immediate benefit of reducing letting-up periods is signifi­cant.”

Mr Egerton-Warburton said extended letting-up periods had been a burden to landlords in recent times.

“You need to provide something unique to activate space and secure a tenant,” he said.
“Many tenants that inspect a fully re­furbished, but not fitted out, vacant floor just can’t visualise it in its final form.
“However, if they step into a fitted floor they start thinking ‘well, our accounts department can go over there… our project team over there’. You don’t need to know too much about the sales to understand the importance of visualisation.”

 

MARKET

Sheffield’s Mr Egerton-Warburton said there had been a lot of noise around vacancy and commercial pressures.

“If stock is priced correctly, is of high quality and there’s a motivated leasing agent and landlord working together …. then these variables trump the official CBD vacancy rate and the market sentiment that surrounds it.” he said.

“There’s been a sustained improvement in commodity prices and increased positivity in the oil and gas sector. This fundamentally drives Perth commercial property.
“Firms are recruiting and repositioning themselves for the next wave.”

Several of his 2017 leasing deals had been for companies in the resources sector; Australis Oil & Gas moved into Allendale Square earlier this year shifting from the CBD fringe into an A Grade office tower, as did Metals X and Westgold, which Sheffield secured as sub-tenants at fitted out space on 197 St Georges Terrace.

“A lot of surplus space has been leased; we’re starting to see real recovery in the commercial property sector, and much earlier than expected.” he said.

“We now have tenants competing for the same space and that hasn’t really happened in the past three years.
“Perth commercial property is starting to move quickly – landlords who continue to improve their assets are enjoying the recovery.”

HEXAGON MELDS – 8 November 2017

Helen Shield – 8 November 2017
Posted in The West Australian Newspaper

Global mining technology services giant, Swedish Hexagon AB, has outed itself as a potential­ purchaser of local mining innovators, backing it up with a commitment to lease 1,200sqm in Primewest’s Australia Place.

Hexagon, a global information technology pro­vider, has a Perth presence at 61 King Street, lev­els one and two, in the WD&HO Wills building on the corner of Milligan and Murray streets and in West Leederville. Hexagon-Mining General Man­ager Perth; Phil Edmiston said the three leases were scheduled to expire within months.

Sheffield Property’s Roly Egerton-Warburton said Hexagon Mining, which plans to move into its new space on level six of Australia Place, at 15-17 William Street in March, was attracted by the fact that the space was ready to go. It has signed a seven-year lease. Primewest, which owns the building, had fitted out the floor in advance.

“This is a drawcard for tenants, as it allows them to focus on their business rather than be distracted (by a fitout).” Mr Egerton-Warburton said.

OPTUS ON TOP TO TRANSFORM PERTH’S OLD SHELL DIGS – 27 September 2017

Helen Shield – 27 September 2017
Posted online TheWestAustralian.com.au

Click here to view online. 

2 Victoria Avenue in Perth is to be renamed the Optus Centre.
2 Victoria Avenue in Perth is to be renamed the Optus Centre.

Telecommunications group Optus has signed up for the top floor of Shell Australia’s former Perth head office, at 2 Victoria Avenue, along with building naming and signage rights.

The newly minted 7668sqm Optus Centre, owned by Stockland Property, is one of the city’s outstanding 2017 office leasing success stories, going from completely vacant in mid 2016 when Shell exited for its new Kings Square tower 2 head office in the Perth City Link, to 76 per cent leased in a matter of months.

The turnaround story started in May, with Stockland’s leasing agents Sheffield Property signing Main Roads WA for 2005sqm on level 2.

That continued with Linkforce Engineering, signing up in July for 1756sqm on the ground floor.

Stockland general manager logistics and business parks Tony D’Addona said the group was proud to welcome Optus, which has signed for 1908sqm on level 3, particularly as it continued to build on its existing relationship.

Stockland owns 51percent of the 84,000sqm Optus Centre at Macquarie Park in NSW as well as the new Optus Centre in Perth.

The leasing spree leaves just level 1 to be leased.

WORK STARTS ON $270M KINGS SQUARE FREMANTLE PROJECT – 1 September 2017

Katie McDonald – 1 September 2017
Posted online Businessnews.com.au

Click here to view online. 

 

Probuild has today started construction work on Sirona Capital’s $270 million Kings Square Fremantle renewal project, which will comprise a mix of commercial office and retail space, as well as a new administration and civic centre for the City of Fremantle.

The revitalisation of Kings Square is a joint project between funds manager Sirona Capital and the City of Fremantle, with the 2.2-hectare site located in the heart of Fremantle to be transformed into a renewed retail, office, entertainment and cultural precinct.

Sirona Capital has invested $220 million in the commercial component, designed by HASSELL, which will involve redeveloping the former Myer building and demolishing the Queensgate building.

This will deliver 25,800 square metres of new commercial office and retail space across the two buildings.

HASSELL‘s rendering of the revamped former Myer building.

Part of Sirona’s investment also includes upgrading the adjoining Queensgate car park.

The City of Fremantle has contributed $50 million to replace its current administration centre, library and visitor centre, with a contemporary complex designed by Fremantle architect Kerry Hill Architects.

Kerry Hill Architects‘ rendering of the new civic building and library.

Construction of the entire renewal project is expected to be completed in late 2019.

Kings Square is the largest public-private infrastructure project in Fremantle’s history. It has been in the works for six years, following Sirona’s acquisition of the Myer building in 2011.

Speaking at a launch event held on site this morning, Sirona managing director Matthew McNeilly said it had been a long journey and that finer details regarding the retail precinct would be announced next month.

“Our plans for the retail component are exciting and will challenge the conventional thinking of not only retail property in Fremantle but around the entire Metropolitan area,” he said.

“We have dedicated ourselves to delivering an integrated and coordinated renewal outcome in Kings Square Fremantle and we are now close to seeing the area become a hive of activity.

“The attendance today by Treasurer Ben Wyatt, Housing Minister Peter Tinley, and member for Fremantle Simone McGurk is yet another indication of the state government’s support for this project.”

Probuild was awarded the contract for the Kings Square project earlier this year, and more than 1,100 full-time workers will be engaged in construction jobs during the process.

An aerial view of the new Kings Square Fremantle upon completion.

Fremantle Mayor Brad Pettitt said the renewal of Kings Square was the most important project for Fremantle in a generation and would underpin its economic future.

“This is a project Fremantle needed for its long-term sustainability, survival and vibrancy,” he said.

“As well as providing a much-needed boost to the local economy, renewing the Freo city centre will provide fantastic new community and commercial facilities sympathetic to the heritage values of the area, designed with high levels of environmental sustainability and energy efficiency.

“Council’s $50 million commitment to deliver a new civic, library and administration building is a direct investment into the future of Fremantle, which can be achieved without the need to raise rates above CPI levels and with debt and reserves able to be reinstated within 10 years – this is a great outcome for ratepayers.

“This is a project that we have to do and will to bring new investment back into the heart of Fremantle.”

On completion, more than 2,000 people will be working in Kings Square, representing a 13 per cent boost in the number of workers in the Fremantle city centre.

This will include more than 1,500 state government employees, with public servants from several state government departments scheduled to relocate to the Kings Square office accommodation in 2020.

LINK GROUP TO MOVE UP TERRACE TO QV1 – 18 April 2017

Dan Wilkie – 18 April 2017
Posted online BusinessNews.com.au
Click here to view online

 

International share registry and shareholder management firm Link Group has inked a nine-year lease at office tower QV1, taking the building’s occupancy rate past 90 per cent.

QV1 co-owners Investa Property Group and Eureka Real Assets  today announced Link Group would relocate its 270 staff from Central Park, as part of a move to standardise its office accommodation across the country.

Link Group national head of procurement and facilities administration, Danny Sindrivanis, said QV1 really stood out during the company’s office search.

“The base building refurbishment to the floors is exceptional and certainly raised the overall quality of the building to match any other premium-grade building in the Australian market, not just Perth,” Mr Sindrivanis said.

“The floors offer large, column-free space, which is able to better support Link Group’s business structure and provide flexibility for any future change the business might experience.”

Eureka Real Assets fund manager Brett Dillon said there were just three tenancies available for lease at QV1, with a comprehensive refurbishment program to be completed early next year.

The redevelopment works comprise the construction of a new public plaza on the ground floor, to be known as The Grounds, including a range of premium food and beverage retailers.

Additional amenities in the building itself include a 300-bike storage facility and the first commercial office in Perth to offer a community garden, complete with chickens and beehives for tenants.

Investa Perth general manager Tom Simurina said the QV1 co-owners were committed to invest in facilities known to be desirable for tenants.

“With the refurbishment of QV1’s office floors, retail plaza and new childcare and end of trip facilities, we are ensuring the building’s premium position in the market is maintained,” he said

Other prominent tenants at QV1 include law firms Herbert Smith Freehills, King & Wood Mallesons , Allens and Clayton Utz, as well as global oil and gas giant Chevron .

The Link Group deal takes the 64,064 square metre QV1’s occupancy rate to 93.9 per cent, with more than 2,500 workers residing in the building daily.

RESOLUTE FINDS THE RIGHT PLACE – 29 MARCH 2017

Helen Shield – 29 March 2017
Published in The West Australian Newspaper – Property Section 

Resolute Mining has taken out a seven – year lease on a 1,200sqm space in Australia Place at 15-17 William Street.

The deal was negotiated by Sheffield Property associate director Roly Egerton-Warburton. He said Resolute secured a fit-out and a central CBD address in an efficient open-plan environment. Resolute’s lease in the well-located Primewest-owned building starts on June 1.

“This is shaping up to a very a very active year for A and premium-grade properties” Mr Egerton-Warburton said. “In 12 months time tenants will have considerably less choice when it comes to selecting their preferred properties.”

INPEX TO HAVE NAME UP IN LIGHTS UNDER NEW LEASE DEAL – 20 MARCH 2017

Dan Wilkie – 20 March 2017
Posted online BusinessNews.com.au
Click here to view online

Oil and gas giant Inpex will hang its logo 24 storeys above the Perth CBD, after confirming it will stay put at 100 St Georges Terrace, one of two new leases covering 20,000 square metres in the ISPT-owned building.

The deal ends more than a year of speculation that the Japan-based oil and gas producer was hunting for a new home, with the ambition of having its name up in lights above the terrace.

The deal was brokered jointly by Sheffield Property Group Digby Sutherland and Mark Clapham, who said the new lease would allow Inpex to modify its operations to cater for the transition from construction to production at its Icthys LNG project in Darwin.

Inpex had been considered as one of the last potential large-space eaters that would underpin a significant new commercial development in the CBD, while midway through last year, rumours swirled through Perth that the company was keen to take up 16,000sqm of sub-lease space from BHP Billiton at Brookfield Place, a deal that never came to fruition.

Sheffield Property also brokered a deal for Quadrant Energy to renew its lease at 100 St Georges Terrace, with the oil and gas player to remain at its 7,000sqm tenancy for the next 12 years.

Mr Sutherland said a market search included new development options for both companies, however, ISPT’s commitment to upgrade the building’s lobby, end-of-trip and office floors made staying at 100 St Georges Terrace an attractive option for both Inpex and Quadrant.

“Our challenge was to prepare a detailed technical review of the building and compared its credentials against those for new office developments to ensure our building upgrade recommendations to ISPT met the needs of both Inpex and Quadrant, but also positioned the building as one of Perth’s best buildings for the future,” he said.

Mr Clapham said the detailed analysis of each tenant’s workplace and technical requirements, as well as what services were on offer, allowed both Inpex and Quadrant to drive down long-term office accommodation costs, by fully utilising base building services.

WORKZONE ATTRACTS MORE TENANTS – 20 DECEMBER 2016

Mark Beyer – 20 December 2016
Posted online BusinessNews.com.au
Click here to view online

 

Training provider Open Colleges has joined Bethanie, NBN Company and Vocus Communications in signing up this year for space at Workzone Building A, which is now fully leased.

Commercial leasing agency Sheffield Property said the Open Colleges deal meant it had completed 9,600 square metres of sub-leasing at Workzone, which is on the CBD fringe at 202 Pier Street.

While Building A is now fully leased, Building B is only half full, with the Department of Health and the Mental Health Commission being the main tenants.

Sheffield Property associate director Roly Egerton-Warburton said the transactions have been negotiated during an exceptionally competitive period, but top quality fitted premises remained in high demand.

“The Perth CBD commercial market has faced its challenges in recent years, but there are significant deals transacting and quality fitted and furnished space such as Workzone are in far less supply than one would think,” he said.

Open Colleges, which is currently based in Stirling, has sub-leased 1,000sqm. That comes after Bethanie [took 2,400sqm and moved from Claremont.

NBN Co also took 2,400sqm while Vocus took 3,800sqm across two floors earlier this year, allowing the telecommunications business to consolidate its staff from three CBD locations.

Mr Egerton-Warburton said the attractions of Workzone, which was completed in 2013, included its ‘campus style’ office accommodation.

“Now that Workzone, considered the CBD’s highest quality, fitted-out fringe office building was fully leased, tenants may have to consider central CBD options to achieve a similar quality office solution,” he added.

Another positive was the building’s environmental sustainability.

“The Green Star v5 As Built rating and 5.5 star NABERS Energy rating at Workzone is a significant drawcard to tenants wishing to apply this to their triple bottom line.”

Other tenants at Workzone Building A include CIMIC Group subsidiaries CPB Contractors and construction firm Broad.

Mr Egerton-Warburton said 2016 may be seen as the start of a recovery in commercial property.

“Many of the CBD’s Premium and A-Grade assets have a large number of deals being finalised now,” he said.

“When the details of these are released, the market will look back at 2016 as a very active year and the beginning of the recovery for Perth commercial property.”

SHEFFIELD SECURES SIGNIFICANT PRECOMMITTMENT TO WA STATE GOVERNMENT – 10 NOVEMBER 2016

Andrew O’Connor – 10 November 2016
Posted online ABC News
Click Here for online link

 

Three West Australian Government departments and more than 1,500 public servants will be relocated to Fremantle as part of a massive redevelopment of Kings Square.

The departments of Housing, Corrective Services, and Transport will begin operating from the port city in 2020, after the construction of 20,000 square metres of new office space.

Premier Colin Barnett said the development, which will involve three years of building works on the site of the old Myer building, would provide a much-needed economic fillip for the city.

“In total, 1,500 public sector jobs will come into Fremantle. It’s a huge boost to the working population of the City of Fremantle,” he said.

The Government expects more than 400 jobs will be created on the project itself, first in construction and then in fitout, with the work being undertaken by developer Sirona Capital.

“The construction itself means jobs, but the 1,500 permanent jobs will boost the whole retail ambience, housing and development of Fremantle,” he said.

Mr Barnett said Fremantle’s former role as a main commercial trading centre had declined in the decades since the Second World War with the loss of manufacturing and port jobs.

Fremantle Mayor Brad Pettit said the Government’s commitment was a “real vote of confidence” in the city.

“Fremantle has struggled economically for some time but we are seeing a new wave of investment,” he said.

“With office workers coming, we’ll see a real catalyst in terms of more investment … and actually returning Fremantle as a seven day a week economy and as Perth’s second city.”

The Government first pledged to move the Department of Housing to Fremantle in 2013, and Finance Minister Sean L’Estrange said the new 15-year lease would deliver substantial savings.

“It represents $53 million of cost savings to Government, so that’s a great boost for us,” he said.

The move is part of a broader push by the Barnett Government decentralise public sector jobs out of the Perth CBD.

The departments of Water, Economic Regulation and the Office of the Environmental Protection Authority are moving to Joondalup, while the new headquarters from the Department of Parks and Wildlife is being built in Bunbury.

Other government services have also been shifted into suburban areas.

Construction work in Kings Square is due to get underway early next year.

“We expect to commence demolition in April [or] May of next year, construction will follow shortly thereafter,” Sirona’s Matthew McNeilly said

Retail elements of the project are predicted to be in place by 2019.

But WA Labor said the Government had taken too long to act on its commitment to redevelop the area, first made in 2012 ahead of the 2013 election.

Labor Member for Fremantle Simone McGurk said she welcomed the development as the city lost around 2,000 jobs when Fremantle Hospital was downgraded after the opening of Fiona Stanley Hospital.

“The decision to move a government department to Fremantle will replace many of those lost jobs, and be the anchor for important building works in the Fremantle CBD,” she said.

 

JUMPING FOR JOY AT JOONDALUP – 31 AUGUST 2016

Helen Shield – Wednesday 31 August.
Posted in the West Australian Property Section Page 8. 

 

Not all CBD office leasing agents will be sharing Sheffield Property’s delight at stitching up one of the biggest State Government leasing deals since 2010 – at Joondalup.

The last thing an already depleted CBD, struggling with a 25 per cent vacancy rate, needs, the argument goes, is to lose 800-plus city office workers and be stuck with an extra 10,000sqm of unloved, empty office space.

The construction is expected to generate about 340 jobs, Primewest director David Schwartz said.

Sheffield Property’s Digby Sutherland & Mark Clapham said the deal would give the State Government “long term occupancy savings”.

The State Government has signed a 15-year lease for 9,600sqm in the soon to be started building at 8 Davidson Avenue. It is said to be the biggest WA Government leasing deal since 2010, when it signed for 13,000sqm in the Herdsman Business Park.

Mr Sutherland said many of Perth’s suburban activity centres missed out on resources boom-generated growth in the past decade.

 

MIRVAC SHOWS OFF NEW ALLENDALE LOOK – 3 AUGUST 2016

A new food and beverage precinct will open early next year on St Georges Terrace, with Mirvac Group today unveiling its vision for a redeveloped Allendale Square.

Mirvac Group is spending around $20 million on upgrades at the 31-storey office building, which was once the tallest structure in Perth when it was completed in 1976.

The retail offering in the basement of the building will be revamped and feature 18 food, beverage and service businesses, while the redevelopment will also incorporate two new flagship restaurants on St Georges Terrace.

Along Sherwood Court, the former loading dock of the building will be converted into retail space, with cafe and restaurant tenancies opening onto the street.

Construction is about a quarter of the way complete, with the works expected to be finished early next year.

Lalla Rookh Bar and Eating House will remain at Allendale Square, and is trading through the refurbishment.

Also remaining at Allendale Square is Bellini Barber Shop, a 30-year tenant that is now operating out of a pop-up style outlet in the building’s lobby.

On Level 31, Mirvac will create a showcase office suite by upgrading lift access to the building’s top floor.

Mirvac Group executive of office, Andrew Butler, said the developer and commercial landlord had identified the need to reposition the building, particularly its retail space, shortly after buying it in 2013 for $231 million.

“It didn’t have a great feel. It was very tired, and there was a mixed bag of retailers,” Mr Butler told Business News.

Mr Butler said negotiations with prospective tenants for the new tenancies were proceeding well.

“We really want the best operators and the best mix”, Mr Butler said. “We have done a number of deals and we’re happy with the progress of the leasing campaign.

“Some of the retailers are national retailers that will be coming to WA for the first time; others are operating in suburban areas but not in the CBD.”

Mr Butler said the new-look Allendale Square would also reflect the high-calibre of the building’s tenants, with a large proportion of the office space leased to legal industry players.

“With the calibre of tenants we have in our building we knew we had to deliver a better retail offer and provide a vibrant retail environment for new retailers,” he said.

“The lobby was also not at the level we had in mind for the quality of tenants in the building.

“Around 40 per cent of the building is leased to lawyers and barristers, so there is a certain expectation.”

The redevelopment has been designed by local firm Christou Design Group, while Mirvac has also been working with Assembly + Co, a placemaking firm headed up by Kristi Dempster, who spearheaded CBus Property’s redevelopment of 140 William while working at commercial agency JLL.

Retail leasing at Allendale Square is being handled by Lease Equity, while office leasing for the five per cent of the building that is empty is by JLL and Sheffield Property.

Dan Wilkie – Wednesday, 3 August 2016 – 06:04

https://www.businessnews.com.au/article/Mirvac-shows-off-new-Allendale-look?utm_source=Business%20News%20Mailing%20List&utm_campaign=2e912e6922-dba&utm_medium=email&utm_term=0_e5391356e5-2e912e6922-288124457

PRIMEWEST & SHEFFIELD SECURE MAJOR GOVERNMENT PRE-COMMITMENT IN JOONDALUP – 14 JULY 2016

WA Premier Colin Barnett announced the State Government’s lease agreement with Primewest to build 9600 square metres of office space in Joondalup.

The new project will create 340 new construction jobs and 800 public service workers would relocate to the area by 2019.

Primewest was represented by office leasing specialists Digby Sutherland & Mark Clapham at Sheffield Property.

Workers from the Departments of Water and Environment Regulation as well as the Environmental Protection Authority will move into the new facility in early 2019.

“Today the Government is fulfilling a 2013 election promise to support the growth of urban office precincts,” Mr Barnett said.

“With the construction of this eight-storey building expected to generate about 340 jobs, the City of Joondalup will see economic benefits from the start of construction in October and an ongoing stimulus once public servants relocate.”

“The building’s proximity to Joondalup train station and bus stops, coupled with the modern end of trip facilities that are planned for the building, provides numerous transport options for staff.”

Finance Minister Bill Marmion welcomed the announcement and said the Government aims to save taxpayers’ funds through decentralization.

“Proposals have been received from building owners and developers in Fremantle, and the Government is actively pursuing an outcome that will deliver further value to taxpayers,” Mr Marmion said.

Construction will begin in October and project is expected to be completed by early 2019.

  • WAMN News – published 14 July 2016 by Darcy Daley.

 

Click here to watch the video about this exciting development:

https://www.facebook.com/plugins/video.php?href=https%3A%2F%2Fwww.facebook.com%2FJanNorbergerMLA%2Fvideos%2F1128097850562242%2F&show_text=0&width=560

Sheffield secures 303MullenLowe in 1 Forrest Place coup – 8 June 2016

Tenants willing to shift from the suburbs to the city are emerging as rare winners in Perth’s patchy commercial property market.

Advertising agency 303MullenLowe will shift from Subiaco to the city next month, having signed a five-year lease at the Primewest-owned 1 Forrest Place.

The deal, brokered by Sheffield Property Group, covers 660 square metres on the second floor of the heritage-listed building, joining architecture firm Hassell as an anchor tenant.

While the ad agency’s managing director of strategy and innovation, Derry Simpson, would not be drawn on specifics of what 303MullenLowe would pay for the space, she did say there was a substantial saving on what the firm paid for its former Subiaco premises.

The office fit-out was also included in the deal as an incentive.

Ms. Simpson said 303MullenLowe did not consider any other suburban location during its search, instead wanting to be close to the majority of its clients, as well as the vibrancy and life on offer in the CBD or Northbridge.

“Our agenda originally was Northbridge or somewhere around the arts and culture precinct,” Ms. Simpson told Business News. “We’ve got 60 people in here, all highly creative individuals who benefit from being in a creative space and having creative businesses around them, and Subi is just not that now.”

Ms. Simpson said 1 Forrest Place gave 303MullenLowe a building that would reflect the kind of business the agency wanted to be.

“Finding a place like that, which is going to make people really excited to come to work and be really proud of the space, was important and I think we’ve achieved that,” she said.

Sheffield Property director Mark Clapham said 303MullenLowe was one of many in the advertising and marketing space making or contemplating similar moves, driven by lower rental values and considerable incentives to relocate.

“What the change in the market has allowed them to do is consider the CBD as a serious alternative to being located out in the suburb,” he said.

“There actually seems to be a bit of a trend emerging with advertising agencies and marketing companies taking a serious look at the CBD as a location.”

Research by commercial agency Savills and the Property Council of Australia put the amount of vacant office space in the CBD at the start of the year at 1.7 million square metres, but Mr. Clapham said a desire for many creative firms to be housed in heritage buildings meant finding a suitable building was something of a challenge.

He said 303MullenLowe examined a number of options around King and Queen streets before deciding to commit to 1 Forrest Place.

“There are a number of heritage buildings around, but generally the level of building services supporting the office space is questionable and it’s not always easy to find larger heritage spaces,” Mr. Clapham said.

“When you go through the buildings on King Street, while they are beautiful, they are all older and smaller.

“If you are looking for space over 500 square metres, the market narrows quite significantly when you’re looking for heritage, and it gets even narrower again when you are looking for quality services and a quality landlord sitting behind it.”

While Mr. Clapham reported interest from advertising and marketing groups, a mass exodus of suburban tenants to the CBD has not yet occurred, according to the latest Sub- urban Office Report by Y Research.

During the past six months, Brookfield Multiplex, Probuild, and Frasers Property Australia are the sole major tenants to relocate from suburban markets, Y Research chief problem solver Damian Stone said.

“With the peak of the CBD vacancy looming in the latter half of 2016, and given the leasing incentives and the quality of buildings and contiguous spaces available, it is likely that tenant relocations to the CBD will accelerate across 2016,” Mr. Stone told Business News.

However, director of tenant advocacy group Acorpp, Justin Boelen, was not convinced that the vacancies in the CBD would all be filled with suburban tenants, even considering the cheap rents and incentives on offer.

Mr. Boelen said many suburban tenants were in the suburbs for a specific reason, whether that was to be close to their core business activities or simply for car parking flexibility.

“It’s cheaper for people to stay in the city now, but most clients who are CBD fringe or suburban typically don’t want to move to the CBD,” he said.

Nevertheless, Mr. Boelen acknowledged the deals on offer in the CBD would likely be enticing, largely because it would be difficult for many suburban office landlords to match the offers.

“In the CBD, because they are all massive companies and superannuation funds that own these buildings, they are diversified over a massive portfolio,” Mr. Boelen said.

“They can say ‘ok we’re getting a haircut over here but we can get it back here’ and it all comes out in the wash.

Yet if you come out to some suburban places where it is a mum and dad or three or four businesses that have a syndicate, they can’t afford the base rent to fall as much, they can’t afford to give the incentive and they are definitely not giving contributions towards the fit-out at the same magnitude as owners are in the city.”

Chinese New Year Gala Dinner with QV1 as Platinum Sponsor organised by Sheffield – 24 March 2016

Chinese New Year Gala Dinner – 2016. Hosted by ACBC (Australian China Business Council)

The Australia China Business Council hosted a Chinese New Year Gala Dinner on Friday 19 February 2016 with the support of QV1 as the Platinum Sponsor.

The event was attended by over 500 people, including:

  • Dr Huang Qinguo – Consul General – Peoples Republic of China in Perth
  • Dr. Mike Nahan MLA, Treasurer Minister for Energy, Citizenship & Multicultural Interest
  • Mark McGowan MLA, Leader of the Opposition, Shadow Minister for Regional Development, Economic Reform, Public Sector Management
  • Adam Handley President – ACBC (WA)
  • David Sun President – China Chamber of Commerce Australia Perth Branch
  • Ralph Addis Director General – Department of Regional Development
  • Jane Caforio State Director – Austrade
  • Andrea Gleason State Director WA – Department of Foreign Affairs and Trade

QV1 Leasing Agent, Mark Clapham of Sheffield Property gave a speech detailing the benefits of becoming a tenant in Perth’s best premium grade office tower. Mark highlighted on the special onsite concierge staff and the exciting upgrades to the retail plaza and new end of trip facilities.

To demonstrate the QV1 concierge service, Katherine Kenyon-May, Lead of Concierge and Conferencing at QV1, had randomly placed 100 envelopes throughout the table place settings with gift vouchers inside, ranging from a night in the Heritage Room at the Como Treasury, to Luxury Transfers by Luxe Charters, and deluxe floral bouquets by Matthew Landers Bouquets, as well as a wide range of other gifts. This provided an example of the variety of services the QV1 concierge staff can organize for the tenants of the building.

Performances on the night included dances by local Chinese community groups; Lion Dance & Kung Fu Display by Chinese Kung Fu & Tai Chi Academy; and the Year of the Monkey Dance performed by Australia Mulan Centre & Arts Association.

The event raised over $1,500 for the Mifan Mama Charity.

 

Vocus finds new home in Northbridge thanks to Sheffield Property – 23 March 2016

Leading commercial leasing company, Sheffield Property, officially confirmed today that it successfully secured one of Perth’s largest commercial property deals for 2015 with telecommunications giant Vocus Communications – subleasing two floors for over nine years at Workzone (202 Pier Street), a prestigious Perth business location.

Sheffield Property Director, Mark Clapham said the contract was negotiated through 2015 and signed in January 2016, clinched in a lean market, but one where top quality longterm subleased office space and fit-outs are in demand.

“The lease term of nine and a half years was secured for levels 5 and 6 of Workzone, covering an area of 3,700sqm. This also included an existing high quality fit-out and furnishings designed by Hassell Design, which had a Qantas Club style lounge staff break-out area that Vocus has ingeniously readapted as a collaborative and flexible workspace, a key feature of the tenancy,” said Mr Clapham.

“Workzone is relatively new at only three years old and offers top quality fitted-out office sublease space in Building A, which is appealing to companies looking for ready to move in business premises. In addition to the Vocus space there are other floors available which are not only supreme but of great value, as there is a market incentive rent free period offered,” he said.

“Ultimately the Vocus deal represents outstanding value in what is a challenged market. We are finding many tenants are actively seeking sublease opportunities which can offer such value, assuming the tenant can line up the holy trinity of subleasing being a competitive rent, a relatively long term lease and high quality fit-out and furnishings. Workzone meets all of the criteria and is one of the best sublease opportunities currently available in Perth.”

Alan Ariti, Vocus Chief Risk Officer said “one of our big company goals is to be one of the top 10 places to work. Having great office spaces where our people are all together is a big step towards achieving that goal.”

“The premises have large open spaces and lots of natural light which provides a great healthy workspace for staff. Plus there is great parking, access to transport and café facilities.”

According to Sheffield Property’s Roly Egerton-Warburton, the opportunities available for top quality, fitted and furnished sublease space in the CBD and CBD Fringe markets are quite limited, even in a market that has high vacancy rates like the Perth CBD.

““Properties like Workzone are being secured by active tenants seeking major upgrades in their office accommodation. Tenants seeking high quality, fitted out, ‘turn-key solutions’ should move swiftly, as these will be in much shorter supply by the end of 2016,” he said.

“With sustainability being at the forefront of modern business, the Green Star v5 As Built rating and 5.5 star NABERS Energy rating at Workzone is a significant draw card to tenants wishing to apply this to their triple bottom line.” concluded Mr Egerton Warburton.

 

Channel Nine strikes $1.5m lease with Primewest & Sheffield to relocate to Perth CBD – 18 November 2015

Perth-based fund manager Primewest have negotiated a 2500 square metre office lease with Nine Entertainment Co., owner of Channel Nine Perth, which will see the broadcaster move out of its offices in Daniella in the city’s north to new space in St Georges Terrace in the Perth CBD.

Nine Perth will take space across three buildings, including at 255 St Georges Terrace, two levels in 267 St Georges Terrace, and at 253 St George’s Terrace, where a new studio will be built. The Australian Financial Review estimates the rents to be worth in excess of $1.5 million a year on long term leases in excess of 10 years.

Recent leases on St Georges Terrace have been struck on an average rate of $630 per square metre with incentives currently between 25 and 30 per cent, according to a Savills April 2015 report.

Sheffield Property brokered the lease transaction while Nine Network Australia were represented by Colliers International.

John Bond, executive director of Primewest, said it had taken over 15 months to”We are genuinely thrilled to have Channel Nine commit to our site and we expect their presence to have a profound effect on the western gateway of the Perth CBD,” Mr Bond said.

The new fully digitised studio designed by Cox Howlett Bailey & Woodland Architects will include an outdoor activation area to be called Nine Plaza and an outdoor video wall, adjacent to the Primewest site.

“The new location for Nine Perth is ideally positioned within close proximity to advertising agencies and key media buyers. All going to plan, we will be fully operational in St George’s Terrace in the third quarter of 2016,” said David Mott, managing director of Nine Perth.

Published online by the Australian Financial Review, 11 May 2015.
Photo courtesy of WAToday.

Kings Square to rival CBD – 18 June 2014

The Kings Square development, which will occupy one hectare in the Perth City Link and is due to be completed next year, will rival St Georges Terrace as the centre of Perth’s CBD.

Bradley Norris, project director for Kings Square 1-4 at Leighton Properties, which is constructing seven buildings on six sites at Kings Square, said the precinct would fundamentally reshape the CBD.

“Essentially this project will shift the St Georges Terrace-centric focus of the CBD,” he said.

Speaking at a Property Council gathering, Mr Norris said the project would also allow the expansion of the CBD through Northbridge, its natural progression in the future.

The four office towers – KS1, KS2, KS3 and KS4 – are due to be finished from mid-next year.

As well as the benefits of A-grade sustainable buildings, Mr Norrish said Kings Square would also deliver the highest grade office space in the CBD and amenity that would support the one million visitors expected to visit Perth Arena each year.

Mr Norris said the timing for the two apartment sites on Kings Square had not been announced. The seventh construction project in Kings Square will also be a commercial building.

Sheffield Property director Digby Sutherland said the CBD centre had moved in the past and with new buildings due to open at Kings Square next year it would shift again.

“I like to think that the Perth bus and train station is now viewed as the centre of the CBD, given that it’s right next to the main shopping malls, right next to the main arts precinct and right next to the Perth City Link development,” he said. “St Georges Terrace will always be there but I think Wellington Street will be a prime street.”

The office towers at Kings Square are being leased by Sheffield Property and Mr Sutherland said several tenants were interested in the remaining space in KS1.

Metropolitan Redevelopment Authority chief executive Kieran Kinsella said when finished Perth City Link would turn an old railway yard into a 13.5ha precinct that would be a world-class, economic driver for Perth.

“Perth City Link is the most significant transport oriented development happening in Australia,” he said.

Kings Square will sit above the new bus port servicing the CBD and Mr Kinsella said it would be the first bus port in Australia with a dynamic stand allocation where signs would direct passengers to stands as busses arrived.

When finished, Perth City Link’s 244,000sqm of commercial space will be the workplace for 13,500 people and its 1650 apartments will be home to 3500 people.

Perth Mayor Lisa Scaffidi told the property industry the City of Perth was working to create a smooth transition between Kings Square and streetscapes in established parts of the city.

“We are also considering the operational aspects of the greater city as these precincts come on line,” she said.

“We don’t want to see a decline in other parts of the city.”

Shell Australia, HBF and Leighton subsidiary John Holland will have new offices in Kings Square and the smallest of the buildings, KS3, will be home to Surge Health and Fitness, Buggles Childcare Centre and a restaurant and bar.

SHELL AUSTRALIA EXPANDS FOOTPRINT AT KINGS SQUARE – 21 May 2014

Kings Square Website – 21 May 2014
http://kingssquare.com.au/shell-australia-expands-footprint-at-kings-square/

Leighton Properties and DEXUS Property Group have announced that energy giant Shell Australia has signed up to a further 5,487 square metres in KS2, Kings Square, Perth – taking its total commitment to 19,300 square metres across to the entire 11 floors of the KS2 building.

Leighton Properties and DEXUS Property Group have announced that energy giant Shell Australia has signed up to a further 5,487 square metres in KS2, Kings Square, Perth – taking its total commitment to 19,300 square metres.

KS2 is the second office tower in the master-planned Kings Square precinct, currently under construction within the $5.2 billion Perth City Link development – one of Australia’s most significant commercial and retail projects.

Leighton Properties National Head of Commercial, Andrew Borger, said anchor tenant Shell had exercised its option to increase its footprint across to the entire 11 floors of the KS2 building.

“It is clear that there is increasing confidence again within the resources sector, evidenced by Shell Australia’s decision.

“We now have 100 per cent of the commercial space leased at KS2 – and with this we will see an increased occupancy at Kings Square and enormous flow on benefits for the precinct, particularly for its retail,” Mr Borger said.

Shell has a strong investment pipeline in Australia, including its exciting Prelude FLNG project to be based off the WA coast and significant investment in projects including Gorgon, NW Shelf and Browse.

Michael Schoch, Shell Australia’s General Manager – Production said moving to Kings Square to occupy the entire KS2 building gives Shell the flexibility to grow, as well as providing first class facilities for staff.

“With our staff numbers doubling to 1000 in support of Prelude FLNG, this investment in our new corporate headquarters reflects our commitment to Western Australia and Australia,” Mr Schoch said.

DEXUS Property Group (DEXUS) and DEXUS Wholesale Property Fund are the joint (50/50) owners of the fund-through Kings Square development incorporating towers KS1, KS2 and KS3. The towers have a combined total of 52,033 square metres of office and retail space.

Kevin George, DEXUS Executive General Manager, Office and Industrial said: “We are pleased with Shell Australia’s commitment to 100% occupation of KS2 office tower, bringing the total leasing commitment at KS1, KS2 and KS3 to 55%.

“This is further evidence that quality, affordable stock is in demand in the Perth CBD and we expect to see continued interest from other potential high calibre tenants in the Kings Square precinct.” Mr George said.

Kings Square will be a contemporary green-star precinct, located adjacent to Perth’s new primary transport hub; the underground train and bus stations and at the junction of four of Perth’s most popular commuter cycle paths, and will raise the bar for quality, amenity and transport connectivity.

The precinct will also include a range of lifestyle advantages such as a new childcare centre, 24-hour gym, retail, restaurants and open spaces.

The first four towers are currently under construction and due for completion in mid-2015.

HBF move to Kings Square – 26 January 2014

MRA Website
26 January 2014
http://www.mra.wa.gov.au/news-and-updates/article/hbf-move-to-kings-square

Western Australia’s largest health insurer, HBF, is the latest organisation to call Perth City Link its future home.

HBF will move from its current Murray Street premises – where it has resided for the past 30 years – to the KS4 tower within the Kings Square precinct once it is completed.

KS4 will house approximately 13,000sqm of commercial office space over 10 levels and will accommodate approximately 600 HBF employees.

HBF’s building is the fourth major building to get underway in the Kings Square precinct. Construction of KS4 commenced in September 2013, alongside three other towers with pre-committed tenants Shell Australia and John Holland.

The KS1, KS2 and KS3 towers are now owned by DEXUS Property Group and DEXUS Wholesale Property Fund. The four buildings between them will house more than 4,000 workers and are due for completion in mid-2015.

Kings Square is being developed by Leighton Properties on behalf of Seven Entertainment, a subsidiary of Seven Group Holdings, on the site of the former Perth Entertainment Centre.

Kings Square is comprised of seven towers incorporating offices and apartments, as well as bars, restaurants, shops and community spaces. It will also include the new two-way road and pedestrian connection linking King and Lake streets.

“Kings Square is a master-planned precinct that will be the prime commercial, residential and leisure hub in the very centre of Perth,” Leighton Properties National Head of Commercial, Andrew Borger said.

“To have four towers under construction at once is truly ground breaking for the Perth CBD and this achievement is testament to the outstanding calibre of the project.”

HBF to call Kings Square home – 29 July 2013

Saskia Pickles – WA Business News
29 July 2013
https://www.businessnews.com.au/article/HBF-to-call-Kings-Square-home

Health insurer HBF has completed a deal, foreshadowed earlier this year, to purchase and move into one of the new Kings Square office towers, relocating its 600-strong staff from its existing office in Murray Street.

HBF will own, occupy and sub-let the 10-level KS4 tower, which has about 13,000 square metres of office space, and will be larger than its current premises.

AHBF spokesperson said it was exploring options for how to use the space, particularly for HBF members, including sub-letting offices to health-related service providers.

The $97.8 million KS4 tower in Kings Square is being developed as part of a joint venture between Leighton Properties and Seven Entertainment, a subsidiary of Seven Group Holdings.

Kings Square is being built by Broad, which is a fully owned subsidiary of Leighton Holdings through Leighton Contractors, and is due to be completed in early 2015.

Construction started last month on towers KS1, KS2, and KS3, which were pre-sold to DEXUS Property Group and DEXUS Wholesale Property Fund, in WA’s largest ever pre-sale in the commercial property market.

HBF managing director Rob Bransby said the new offices would be a big change from its current premises where it had been for more than three decades.

“We’ve been in our current premises for over 30 years, so we’re all looking forward to the move to a brighter, fresher new building that will help us achieve our vision of being a health partner to our employees and members, Mr Bransby said in a statement.

Sheffield Property director Digby Sutherland facilitated the transaction and PwC Real Estate Advisory executive consultant David Hobart acted on HBF behalf.

Construction finance was arranged by the Commonwealth Bank.

SHEFFIELD SHOOTS FOR LEASING SPACE – 14 FEBRUARY 2013

Mark Pownall – 14 February 2013
Page 15 WABusinessNews – Property Section

SPECIALIST leasing group Sheffield Property has claimed its first major deal after snaring former Brookfield high-flier Mark Clapham.

Sheffield said it had been appointed by listed Perth property player Aspen Group to handle the leasing in one of its prime assets, Septimus Row Square on Adelaide Terrace.

Mr Clapham, who has quit as Brookfield Office Properties head of commercial leasing for Australia and New Zealand, has become a partner in the business with founder Digby Sutherland.

The pair worked with each other at CB Richard Ellis in Sydney. Mr Sutherland returned to Perth some years ago and estab­lished Sheffield more than five years ago. Mr Clapham has been resident in Perth for a little over a year, having relocated to oversee the leas­ing of major Brookfield assets Brookfield Place, BHP Billiton’s new Perth headquarters, and 108 St Georges Terrace, previously BankWest tower.

Sheffield is offering a new leasing alternative to the handful of national agencies that dominate the market.

Mr Clapham said the major agencies were not focused on leasing; they simply included it in a broad range of services from valuations to asset management and real estate sales.

“We are offering something that is completely independent, we don’t come with any conflicts,” he said.

To date, Sheffield has been focused on the pre­commitment leasing of new office developments.

Mr Sutherland said Western Australia had undergone significant growth in the CBD, and the continuing demand for office space opened up room for specialist leasing agencies to oper­ate. Such boutiques were more prevalent in big­ger markets such as Sydney.

He said no other market in Australia was witnessing the level of activity in Perth, where several state-backed developments – City Link, Elizabeth Quay and Riverside – were driving the property sector and creating interest from institutional and sovereign wealth investors.

On the client side, demand from oil and gas companies had put a floor in the market, he said.

STATE MOVE MAY SPARK SUBURBAN OFFICE SHIFT – 10 June 2010

Dan Wilkie – WA Business News
10 June 2010
https://www.businessnews.com.au/article/State-move-may-spark-suburban-office-shift

THE state government’s plan to relocate up to 20 per cent of its CBD office tenancies to suburban centres could act as the catalyst to kick-start new office developments outside of the city centre.

The government released details of its CBD and suburban office accommodation plans last month when it announced it had signed a 15-year lease for over 13,000 square metres of new office accommodation in the 4-star green-star rated Optima Centre building B.

Two divisions within the Department of Treasury and Finance and the new Department of Training and Workforce Development will relocate to the PACT construction-built Optima Centre, in Herdsman Business Park, by early 2011.

Sheffield Capital director of project leasing Digby Sutherland, who brokered the deal for Optima Centre developer ABN Group, said the move would set in motion feasibility studies for new suburban office developments.

According to Mr Sutherland, Perth’s non-CBD office market is developing into a key sector as it evolves from mainly industrial uses to business precincts.

“Now companies have the choice, they can lease a CBD-quality office building, but in the suburbs,” Mr Sutherland said.

“Developers are getting a lot smarter as well. They’ve seen what has been best practice on the east coast for developing suburban office buildings, and now the economics stack up over here, they can take the best of office design from the east and develop it here.”

Mr Sutherland said the momentum created by the government’s move to Herdsman had already boosted the construction of at least one major development in the suburb.

Rapley Wilkinson, developer of A-Grade Herdsman Business Park office building Parkland Rise, has relaunched marketing for the project, which stalled in 2008 during the trough of the global downturn.

Mr Sutherland said the $34 million 4,800sqm office development was 50 per cent complete and could be ready for occupation in less than 12 months.

“This timeframe fits perfectly with well-organised large corporate tenants that review their office accommodation requirements at least 18 months prior to lease expiry,” Mr Sutherland told WA Business News.

In other current suburban office construction, QUBE Property Group has begun building a $28 million office development at Subi Centro.

QUBE director James Collis said the three-storey 3,736sqm development would give a major boost of confidence to the Subiaco office market.

“This major office development will soon become a reality because we were able to secure finance based upon our strong reputation within the finance sector while at the same time quickly expedite all the necessary approvals processes,” Mr Collis said.

“Currently, we have leased all but 1,200sqm of the development and are confident the remaining vacant space will be leased quickly.”

QUBE has secured Amex Corporation, NS Projects, Strathearn Insurance Brokers and the Meyer Shircore Group as tenants.

Also in Subiaco, Northerly Group and Amana Living will officially open their 5-star green-star rated three-storey development, ECO 541, this week.

Savills WA head of research Helen Swanson said the developments were classic examples of the evolving nature of Perth’s suburban office market.

Savills recently closed expressions of interest for the sale of a three-storey, 1,982sqm office building at 27 Walters Drive, Osborne Park.

“Perth’s suburban office market is experiencing significant growth in rentals as a result of the resources boom and suburbs such as Osborne Park and Subiaco are subsequently becoming more popular due to their proximity to the CBD and relatively cheaper rentals,” Ms Swanson said.

“This is also evidenced by the numerous new office developments that have occurred or are planned in the area.” Another planned office development is BGC’s 11-storey tower, expected to be built at 3 Hasler Road.

BGC has recognised demand in the area since completing another large Herdsman office block in early 2008, leasing two floors to John Holland and three floors to the WA Health Department.

Property Council of Australia executive director Joe Lenzo confirmed demand for suburban office developments was increasing,

He said before the financial crisis hit, CBD office vacancy rates dipped to virtually zero and a significant number of suburban office development applications were lodged.

“However, due to the GFC, a big percentage of those were either put on hold or relinquished altogether, so we didn’t have what we thought a few years back would be fairly substantive suburban office development taking place,” Mr Lenzo said.

He said developers would be revisiting those plans in the wake of the government’s proposed move to Herdsman.

“At the moment the suburban office stock is quite limited, however the announcement the state government has made could be an impetus for some new developments, especially for those that have got the potential to put up a building in the state government’s new activity centres policy, nominated under (state planning framework) Directions 2031,” Mr Lenzo said.

“Areas where you’ve got transport like central Stirling, areas in Belmont, areas in that southern corridor like Murdoch and Jandakot, there would be potential there.

“I think the government is using this also as an impetus to try and get their activity centres actually working, in other words they will be looking to move in the so called-designated activity centres.”

Mr Sutherland identified business parks in Herdsman, Victoria Park, Belmont, Jandakot and Fremantle as the most viable emerging office markets, alongside established suburban office enclaves at Subiaco and West Perth.

The Property Council’s autumn office markets forecast showed gross face rents for prime office buildings in Belmont, Herdsman, Subiaco and West Perth in January this year averaged $536/sqm. This compares to average gross face rents in prime CBD buildings of $840/sqm.

But Mr Sutherland said developers should be mindful a suburban office development had to provide the same level of amenity and functionality as a CBD office building, even with a reduced rent.

“There is a difference between what has traditionally been constructed in the suburbs in terms of quality and design and the new benchmark buildings that are going to have to be designed to attract the government and the large corporates into the future,” he said.

“Optima is the benchmark in that regard, so there might be plenty of interest from developers on sites, but the site has got to be in the right location, next to public transport, the design is going to have to be a benchmark design, and the developer has to have credibility.”

STATE GOVERNMENT COMMITS TO OPTIMA CENTRE IN MAJOR LEASING DEAL – 19 May 2010

Bonnie Bullock, Saranac PR
19 May 2010 – ABN Alcock Brown Neaves Group Media Release

 

The Western Australian State Government today signed a 15-year lease for over 13,000sqm of new office accommodation in the 4 Star Green Star rated Optima Centre Building B, located at 16 Parkland Road within Herdsman Business Park.

The agreement is the largest leasing deal for a new suburban office development in almost two decades.

The seven-storey building, which is due for practical completion next month, is the largest new office development outside the Perth CBD in the past 20 years.

The Optima Centre was developed by the ABN Group and Macquarie Real Estate Capital and is set to be handed over to the State Government mid-year.

It will accommodate the Government Procurement and Building Management and Works business units from the Department of Treasury and Finance and the head office of the Department of Training and Workforce Development.

Jason Willoughby, General Manager of Developments at the ABN Group, says the State Government’s decision to lease accommodation at the Optima Centre and the recent relocation from the city of many national firms to new suburban buildings is in keeping with the national trend over the past 10 years.

“The city is suitable for many businesses, however, the successful leasing of the last wave of new suburban buildings reinforces the desire of many large tenants to occupy a CBD-quality building in the suburbs with good access to public transport,” said Mr Willoughby.

“The new generation Optima Centre – with its ideal location outside the CBD and high environmental credentials – has enabled the State Government to lock in long-term occupancy savings,” said Mr Willoughby.

“The Government lease will also be a great catalyst for similar projects to get underway within the Herdsman Business Park and fits within our Committee’s vision for the area’s future,” said Mr Willoughby, who is also a member of the Herdsman Business Park Committee which recently released plans to improve the precinct.

“After all, Herdsman Business Park is the only real business park in Western Australia,” concluded Mr Willoughby.

Tim Jones from Macquarie Real Estate Capital says the main objective for the Optima Centre was to construct office space to the highest standards as well as deliver an environmentally-focused design.

“The announcement of the State Government committing to a lease of significant length confirms our original vision for the development.

“The entire Optima Complex has been designed to tick all the green boxes required by large corporates and State Government departments, including reducing expenses and providing a cost-effective, long-term solution for a large area of office accommodation,” said Mr Jones.

“We’re confident the Optima Centre sets a new benchmark in Western Australia for future office developments specifically in the area of sustainability,” he continued.

“It will no doubt become a flagship green building for Western Australia as it successfully combines quality leading-edge office accommodation with both energy efficiency and sustainable design elements.

“I understand the Green Building Council’s certified rating of 4 Star Green Star coupled with the easy access to public transport were both major factors in the State Government’s decision to commit to Building B of the Optima Centre,” concluded Mr Jones.

Built by PACT Construction, the Optima Centre – located on the corner of Parkland and Hasler Roads in Herdsman Business Park – combines two separate buildings.  Building A is completed and is home to Canon Australia and the ABN Group. Optima will eventually be home to over 1,300 employees.

Through an initiative established by the developers, Optima is serviced by a door-to-door Transperth high-frequency bus service through Herdsman Business Park from Glendalough train station, which operates every 10 minutes in peak hour.

The developer was represented in the lease negotiation by Digby Sutherland, Director of Project Leasing at Sheffield Capital. Mr Sutherland said the prestigious new office complex was poised to become a signature development in the Herdsman Business Park and would provide a benchmark for future suburban office development in Perth.

“The Optima Centre design was developed after taking into consideration the successful building features identified in new A grade suburban office developments around Australia,” said Mr Sutherland.

“We also met with many national tenants and Perth’s larger businesses to make sure we were constructing a building that incorporated features that were important to their business. These included efficient 2,500sqm floor plates, backup generators, fully secured bike storage facilities and high-quality change room facilities.

“It is great to see the foresight of the developers has proven to be such a success and has also provided the state with quality offices with long-term occupancy savings,” concluded Mr Sutherland.