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News release


Small businesses continue to drive office leasing activity in the Sydney CBD​​

Businesses are looking for larger or more unique space, with examples including the latest leases at 309 George Street and 8 Spring Street

SYDNEY, 15 AUGUST, 2014 – Small businesses are continuing to drive office leasing activity in Sydney’s CBD, seeking larger space or offices with a point of difference. This includes end of trip facilities (showers, lockers, and bike racks), outdoor common areas and unique non-traditional office refurbishments, according to JLL. 

Recent examples of tenants seeking unique space include leasing deals completed at 309 George Street. JLL’s Manager – Office Leasing Christopher Selman recently secured five new tenants for Abacus Property Group in the building.

“We’ve seen a lot of activity in the sub-200sqm space in the Sydney CBD during 2014 to date, including the latest deals,” said Mr Selman.

The most recent tenants to take up space within 309 George Street are BW Penman (180sqm) and Korean Air Lines Co. Ltd (130sqm), both taking up five-year leases; GMC Software Technology (116sqm) and British Airways (150sqm), taking up three-year leases and more recently, Career Trackers (102sqm) under a five-year lease.

“Tenants are attracted to the funky outdoor common area at 309 George Street, which provides a space for staff to meet, socialise and get together on a Friday night after work. It’s this unique element that not a lot of other properties provide which appealed to aspiring youthful companies, who are looking to attract and retain the best staff.

“Tenants are increasingly savvy in terms of requesting additional amenities within office buildings, such as end-of-trip facilities, which are becoming more of a given,” said Mr Selman. 

309 George Street is located on the western side of George Street, directly opposite the Ivy Hotel, with immediate access to the Wynyard Rail and Bus transport hub. The office tower contains a net lettable area of approximately 9,357.3sqm spread over 15 floors with average floor plate of 648sqm. The building had been occupied by the Commonwealth Bank since its construction, with a recent refurbishment providing the first opportunity to offer these floors to lease. 

In a second example of small businesses driving activity in the Sydney CBD office market, JLL’s Executive – Office Leasing, Sydney Sean Hennessy has recently handled several leasing deals at 8 Spring Street. 

“Currently in the Sydney CBD, we’re seeing a lot of small businesses moving out of smaller offices or serviced office space, looking for short-term three-year leases. Landlords are happy to offer these leases to cater for small business demand in the current market and there is also the opportunity for these businesses to renew their leases in future, potentially making it a six-to eight-year term.

“Some owners are looking at splitting floors, which is a good tactic in the current competitive market to appeal to a wider range of tenants,” said Mr Hennessy.

The latest examples are at the office tower at 8 Spring Street in Sydney’s CBD, which has strong levels of natural light, a modern foyer, two levels of on-site security parking and 390sqm floor plates – ideally suited to whole or part-floor boutique tenants.

JLL negotiated the recent deals for Alfasi Steel Constructions, who took 191.5sqm of office space on an 18-month lease plus options; and Bravehearts Inc, who took up 163.7sqm under a three-year lease. Both tenants moved into pre-fitted office space.

“The office at 8 Spring Street features the flexibility of a “turnkey” solution – also known as pre-existing fit outs –ideal for small businesses or those needing short-term space.

“Businesses looking for short-term space require shorter lead times for moving in, and small businesses benefit from the same convenience. It’s likely we’ll see more of this project-space activity as the strength of business confidence returns to the market,” concluded Mr Hennessy.