Despite Bleak Backdrop, Corporates Pay Top Dollar For Sydney Offices in 2011

Also in the building, recruitment firm Robert Walters signed a 10-year lease over the 53rd level. Investment management firm T. Rowe Price leased 450 square metres on level 50. Both tenants are reportedly paying net rents of more than $1200 per square, metre per annum.

The Sydney CBD leasing activity hasn’t delivered fund manager Dexus the major tenant it needed to lease 45 per cent of unoccupied space at its One Bligh Street tower (foyer pictured). Dexus co owns the building with DWPF and CBus Property. Law firm Clayton Utz is the major tenant in that building which is due for practical completion on July 8.

Dexus chief executive Victor Hoog Antick told the AFR the company would not meet market incentives on premium space.

According to the Property Council of Australia’s most recent Office Market Report, premium space in the Sydney CBD carries a 3.1 per cent vacancy – much lower than the overall rate, of 8.2 per cent.

Credit Suisse analysts said “market feedback suggests that uncommitted space at 1 Bligh will likely remain vacant for at least 12 months given management posturing and completion from alternative options, including: 10 – 20 Bond Street, Chifley Tower, 85 Castlereagh Street and Aurora Place”.

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Marc Pallisco

A freelance property analyst and journalist, Marc is a co-founder of realestatesource.com.au.

Marc Pallisco

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