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News release

Sydney

Barangaroo office space pre-commitments make history

“These are offices of the future”


SYDNEY, 22 JUNE 2012 – The announcement today of pre-commitments of over 120,000 sqm of office space by Westpac, KPMG and Lend Lease confirms that Sydney tenants are keenly seeking large, flexible floorplates in highly-sustainable commercial CBD buildings. 

“These are offices of the future,” said Mark Lacey, National Director Office Leasing from Colliers International.
 
Colliers International was appointed alongside Jones Lang LaSalle and DTZ Australia, to assist Lend Lease on managing tenant interest and leasing.
 
DTZ’s International Director of Leasing John Hickey said the deals announced today are the largest combined pre-commitment in Australia. “The demand from tenants has been incredibly strong and the announcement of these pre-commitments and recent development approvals will give a shot in the arm to the Sydney office leasing market,” he added.
 
Jones Lang LaSalle’s Australian Head of Leasing Kevin George said momentum in the Sydney office leasing market would now build following more certainty around the delivery of space in the 2015 timeframe when Barangaroo South comes on line.
 
“We expect a surge of activity from medium to smaller tenants now that it is known who the anchor tenants for the first two towers of the development will be,” he said.
 
“The interest in the Barangaroo development since the bid phase has been exceptional and we expect the completion in 2015 will coincide with an uptick in the financial services sector.
 
“When the demand for business and household credit recovers in 2013 and 2014, the banking sector should see stronger revenue growth and increased headcount. Deloitte Access Economics projects that the Finance & Insurance sector in the Sydney CBD will grow by 1.9% in 2014 and 3.8% in 2015.
 
“Already there are about 170,000 people employed in NSW’s finance and insurance services sector, representing over 40% of that industry in Australia.
 
“The Barangaroo development will be a major financial hub and will expand the CBD office core to the waterfront.”
 
Discussing the importance of today’s announcement, Mark Lacey said: “The market feedback we have received about this project reflects the quality of what Lend Lease is creating at Barangaroo. 
 
“Barangaroo is unique – a CBD location with parklands and waterfront access.  The compelling reasons why organisations will locate to Barangaroo are the large floorplates, the sustainability features of the precinct, the incredible amount of amenity that is being created for staff including retail and leisure activities around the waterfront and the new transport connections.  Tenants at Barangaroo will benefit in a way that is not possible elsewhere in the Sydney CBD by having this amenity on the doorstep of their work environment.”

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