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News release


Sydney CBD tenants seek non-traditional space in a competitive office market

​SYDNEY, 4 April 2014 – In Sydney CBD’s highly competitive office leasing environment, owners are looking at different ways to entice a wide array of tenants from a range of industries – including undertaking ‘non-traditional’ corporate office refurbishments. 

According to JLL’s Director of Office Leasing – Sydney Ben Kardachi, Sydney CBD office landlords are responding to tenants’ demands and seeking a wider range of corporate occupiers through unique, creative refurbishments. 

“In today’s competitive market, tenants have more choice. We’re finding that many corporates are seeking different yet cost-effective space that offers a unique environment their staff will enjoy, enabling them to attract and retain the best staff and maximise productivity for the business,” said Mr Kardachi.

JLL’s Director of Office Leasing – Sydney Tom Mott said the latest example of this trend is the DEXUS-owned office tower at 50 Carrington Street, Sydney. The property is a 15-level building providing 10,881 sqm of office accommodation and 372 sqm of ground-floor retail space overlooking Wynyard Park in the core precinct of the Sydney CBD.

“DEXUS acquired the office tower at 50 Carrington Street in late 2012, and recognised the opportunity to reposition to add value to the property. DEXUS undertook a capital expenditure program of upgrade works on areas of the building that presented opportunity – the ground-floor lobby, the lifts and the vacant floors. 

“DEXUS appointed BVN Architects who suggested a “non-traditional” refurbishment be considered on the floors. They were looking to broaden the potential tenant pool to a range of industries, from corporate to creative,” said Mr Mott.

The refurbishment of 50 Carrington Street included the ground-floor lobby, the four lifts, four vacant floors and the installation of new end-of-trip facilities in the basement. Base building finishes were redefined to create a ‘studio aesthetic’, increasing appeal of the property for targeted tenants. ‘Non-traditional’ finishes included polished concrete floors, exposed services on the ceiling, and new façade glass windows in the low-rise floors, allowing 30% more natural light to penetrate the floors, plus funky and modern bathrooms.

DEXUS adopted an active leasing strategy to attract niche companies seeking to move to less traditional, more modern and unique CBD office accommodation. According to Mr Kardachi, the creative style of refurbishment was well received by a range of industries in the market, with approximately 3,000 sqm leased to a variety of new tenants within six months of the works being complete.

“New tenants of 50 Carrington Street include Industrie IT, who have taken 828 sqm on level five; NGA, who have 829 sqm on level 4; Gravity with 798 sqm on level 3; and the Actuaries Institute who have taken over 565 sqm on part level two,” said Mr Kardachi. 

“We are expecting to see more of this type of refurbishment in the Sydney CBD as companies seek new and improved office environments which foster productivity and staff retention, and as landlords look to appeal to a broader range of tenants,” concluded Mr Kardachi.