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News release


The best things come in small packages in Sydney’s office markets

Subdivided and fitted out “Plug n’ Play” floors become popular with tenants looking to gain a foothold in A-grade buildings

SYDNEY, 30 AUGUST 2012 – Quality, not quantity, is the driving factor for tenants in Sydney’s CBD with a number of subdivided and fitted out floors in A-grade buildings attracting major tenants.

Alex Wong, Director, Leasing at Jones Lang LaSalle, “The trend towards subdivided floors means that smaller tenants who would otherwise not be able to access A-Grade and Premium space in the CBD have a chance to get into the market. This is part of the flight to quality which we have been witnessing for the past 12 months
“It also allows smaller organisations to locate themselves close to their client base of institutional and multinational organisations,” Mr Wong said.
Some of Sydney’s biggest office towers including  420 George Street, 1 Bligh Street and 20 Bond Street, are offering subdivided floors.
In the past 12 months, a number of tenants have moved into subdivided suites in 20 Bond Street: In August 2011 LexisNexis leased 96 sqm in the building while in November Hannover Re signed for 232 sqm. Meanwhile, this year Salt & Shein has taken 127 sqm. The deals were negotiated by Christopher Selman, Leasing Executive at Jones Lang LaSalle.
Mr Selman said, “20 Bond Street is a great example of how well subdivision can work for both building owners and tenants. It allows landlords to lease small pockets of floor space while providing tenants with greater flexibility.”
Mr Selman added that the subdivision of floors has evolved into the creation of “plug n’ play” offices in which tenants occupy small subdivided suites that have already been fitted out.
“Plug n’ play suites are ideal for small tenants who do not require tailored fit outs or large amounts of space. Essentially, tenants can move in and starting working straight away so it works very well for a lot of small firms and is quite popular for boutique consulting groups.”
“The convenience factor is a huge draw card when it comes to plug n’ play offices. Tenants really like the fact that they can move in immediately without needing to fit out the space,” Mr Selman said.
Mr Selman added that the trend towards subdivided and plug n’ play offices is likely to continue and grow over the next two years.
“We have entered an era where it is vital for companies to do more with less so I expect that plug n’ play suites and subdivided floor plates will become even more common over the next few years,” Mr Selman concluded.


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