Dexus, Lendlease dodge vacancy hole at premium office
King & Wood Mallesons has renewed its lease for 10,500 square metres – or about 12.5 per cent – of Sydney’s One Farrer Place, which includes the historic Governor Phillip and modern 61 storey Governor Macquarie towers.
Though the detail hasn’t been disclosed, the law firm is speculated to be paying over $1750 per sqm, per annum, for the seven level space.
Outgoings are understood to circle an additional $250-$275 per sqm. The rental agreement is also expected to include car parks.
With the 10 year deal, landlords Dexus, which owns half, with Lendlease’s Prime Property Fund, which since a $584.6 million deal with GPT in 2020, has controlled the balance, have kept a lid on vacancy – still just 1.6pc.
The weighted average lease expiry however increases to 5.6 years.
Dexus, with AMP, is also behind the recently completed Quay Quarter Tower where last March another law firm, Johnson Winter & Slattery leased 3500 sqm, joining Corrs Chambers Westgarth which pre-committed to 10,500 sqm in 2021 (story continues below).
Makeover planned
One Farrer Pl also includes five Phillip St terraces. KWM rents within the Governor Macquarie Tower, which is Premium grade, the best available.
“After 30 years, One Farrer Pl remains one of Australia’s most sought after buildings and we are delighted that KWM, who were one of our original customers, has elected to extend their relationship with us well into the next decade,” Dexus executive general manager, Office, Andy Collins, said.
The KWM space will soon receive a new fit out its chief executive officer, Renae Lattey, added is inline with the company’s way of working post-COVID – with “dynamic and welcoming spaces for our people and clients to connect when they are in the office”.
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