Newfangled leasing requirement could become the norm

A shared area within The Commons’ dog friendly QV office, also pictured top.

Charter Keck Cramer is seeking new Melbourne offices.

Unusually, yet appropriately, given its business needs to know property trends – the firm has added a relatively new requirement to its leasing brief: proximity to co-working space.

The usual workplace needs are there too: access to transport and preference for fitted out, open-plan area.

CKC is seeking single floor, A-grade accommodation of between 1300-1600 square metres.

It will consider re-leasing in the Melbourne CBD, or city fringe suburbs including Southbank, St Kilda Road and East Melbourne.

The requirement, which called for submissions to be made to it by yesterday, also seeks natural light and between 40 and 50 car parks.

The research house and advisory group could sign an eight year agreement if it finds the right place.

CKC hopes to relocate from 8 Exhibition Street at the end of next year.

Access to co-working space may be a driver for good

CKC said it would view favourably “the ability to provide flexible space opportunities within the building; or next to/adjoining the building” (story continues below).

Co-working space is advantageous to occupiers for a number of reasons, the chief being flexibility – tenancies can grow or shrink as a business does, perhaps as contracts come and go.

Tenants also aren’t locked in long leases which can be limiting in other ways (ie, rental agreements affect the ability to borrow capital).

For many renters, placing an employee in a co-working space might be cheaper than renting permanent area particularly if there are periods a desk is vacant.

This week, real estate agency LJ Hooker moved into a Sydney CBD co-working office managed by WeWork at 161 Castlereagh St.

WeWork’s co-work office at 161 Castlereagh Street, Sydney/

Providers of this product also seek to create add some perks they might not get at their usual workplace – The Commons for example allows dogs at its QV branch.

An occupier services executive said an alternative office can contribute to employee satisfaction – and in theory, attendance and productivity.

For some businesses, it could mean having a base closer to clients or could-be customers.

Some major landlords appear to have recognised the trend – beginning to incorporate co-work tenancies into buildings for other occupiers which might urgently need short-term space.

Blackwall, Dexus and GPT Group are amongst them.

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Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco