The Wrap is your one-stop-shop for all the latest trends and research and news in the Tenant Representation environment across Australia. We’ll ensure you’re in the know with latest market activity in Brisbane, Perth, Canberra, Melbourne and Sydney.
Head of Integrated Portfolio ServicesCorporate Solutions
+61 2 9220 8729
Business cycles and property cycles have never really run in parallel, with property traditionally lagging the economy into a downturn and following behind in any upswing. This places corporates at the mercy of supply and demand movements for accommodation opportunities that do not reflect the corporate cycle. However in the current market there is an abundance of capital seeking investment in the commercial property markets nationally. This weight of money is creating its own dynamic, which is also providing an alternate avenue for accommodation strategy for tenants beyond basic supply and demand.
As this capital competes to find a home it is allowing developers to commence new development if they can secure pre commitments. This means there are opportunities for tenants to take advantage of the current conditions and upgrade their real estate to the new space, creating a workplace experience that will resonate with their people and their brand. At the same time this capital is often off-shore and is satisfied with a lower yield, which translates into a more competitive deal for the occupier. This is a unique situation where an occupier can secure new, purpose built premises at a market competitive rate in a market where multiple choices already exist.
In this issue of The Wrap, we explore the implications of this wall of money on tenant movements and highlight where we see the best opportunities for corporate occupiers over the next 12 – 24 months.
Head of Tenant Representation,NSW & ACT
+61 2 9220 8458
As with many commercial markets around Australia, the weight of money and yield compression in the sector is driving the development pipeline. Sydney’s CBD currently has 300,000sqm of space under construction excluding the first tower at Barangaroo. Barangaroo is the largest development precinct in Australia and on completion there will be 267,000sqm of offices, currently with 66% pre-committed, leaving 90,000sqm of space available for lease. Other key developments under construction are 200 George Street (the new headquarters for Ernst & Young), 20 Martin Place, 333 George Street, One Wharf Lane and Darling Harbour Live.
In addition there are a number of large sites that will be developed subject to a major pre-commitment, these being Lend Lease’s site at Circular Quay, Brookfield’s site in Carrington Street, AMP’s redevelopment of 50 Bridge Street and the Ribbon Development incorporating the Imax Theatre. The choice tenants have in the market today is not only existing space, but new stock that has yet to be built. If these sites could secure a pre-commitment of 40% plus, we are likely to see them come into the market over the next three to five years. The developments have the potential add a further 272,000sqm to the Sydney CBD office stock over the medium to longer term.
In the short term there will be a rolling effect where space vacated by tenants moving to the Barangaroo South precinct will be refurbished and repositioned into the market to provide opportunities for tenants. We have already seen IAG lease the space being vacated by Price Waterhouse Coopers at Darling Park and Suncorp’s commitment to 10 Shelley Street vacated by KPMG. This will provide opportunities for tenants to upgrade from their existing space into newer, more efficient and more sustainable space on attractive terms, reflecting the ‘tenant friendly’ market and the willingness of landlords to back fill these vacancies.
On the demand side, there are currently a number of requirements in the market including Atlassian, CBA, WeWork, Gadens, Expedia and NBN, some of which may pre-commit to a new building and trigger additional supply into the market.
Current incentive levels are high, sitting in the low 30% gross rental range as owners continue to maintain high face rents and escalate these above CPI. It is unlikely we will see any change in lease structures in the short to medium timeframe. However the big question is when will incentive levels start to compress, driving an increase in the effective rents. Whilst there are global influences creating uncertainty around future economic conditions, the A Grade market in Sydney has seen a good level of activity reducing the choices available for small to medium sized tenants and potentially resulting in a reduction in the incentive levels. This however is not the case in the premium end of the market, where existing traditional users of the space are in contraction mode and potential new tenants are wary to relocate to this expensive office space in challenging economic conditions.
The level of activity in the Sydney CBD market over the past 12 – 18 months has been driven to a large extent by the IT and communications sector. Social media, IT and telecommunications companies have shown organic growth and an appetite to be in the CBD to attract talent, which has driven Sydney CBD net absorption. They are moving into traditional locations in new or refurbished CBD buildings, taking advantage of the current vacancy opportunities in the market. Examples include LinkedIn’s new offices in 1 Martin Place, Apple relocating to 20 Martin Place, DropBox moving to 5 Martin Place, adding to already established users such as Facebook at 77 King Street and eBay at 1 York Street.
The traditional sectors such as professional services firms, legal, banking and insurance have been focused on better leveraging their space to drive cost efficiency, productivity and the creation of an enhanced workplace experience for their people. Whilst there has been movement in these sectors, the moves have predominantly been driven by a desire to relocate from outdated fit-outs to new space which can often be achieved at a lower cost than refurbishing existing space.
The Sydney market in the short term will be active, with more interest from the smaller and medium size technology firms favouring the CBD over the suburbs. Additional supply can only be created by large tenants pre-committing to future developments. The challenge is companies’ ability to understand their future space requirements some three to five years out, against a backdrop of economic uncertainty.
Demand will be consistent over the next 12 months, but real growth will be limited to the technology sector, with other corporate occupiers focused on “doing more with less” rather than creating an expansionary environment.
Head of Tenant Representation,VIC
+61 3 9672 6560
Investment demand for office stock in Melbourne is strong and has driven down investment yields, as well as provided impetus for developers to deliver new stock into the market. The reduction in yields has a flow on benefit to tenants, with the reduction in economic rent required to make the development feasible. This in turn can be passed onto the tenant in the form of lower rental or other incentives to attract them into these new buildings.
The majority of new development in Melbourne is concentrated in the Docklands area, where tenants are attracted by opportunities for larger floor plates, higher densities and space that lends itself to activity based working environments. We have seen new developments taken up by KMPG and Maddocks moving to Collins Square (the first professional services and law firm to move to Docklands), AGL to 699 Bourke Street and Pitcher Partners committing to 664 Collins Street. One of the emerging precincts in Docklands is the Southern Cross precinct which offers access to suburban and intercity trains. Rental levels here are attractive compared to the CBD for similar quality A Grade office buildings.
However development in the CBD has been limited, with the only recent addition being 567 Collins Street with a pre-commitment by Corrs Chambers Westgarth and Leighton. Of approximately 79 sites sold between 2009 and mid-2015, only one of those is slated for new office space as part of a mixed-use development. Residential has proven to be the highest and best use and delivered solid ROI to developers. Developers need a substantial pre-commitment in most cases over 20,000sqm in the CBD to make an office development viable and outside of the large banks, there are not a plethora of tenants of this size and scale in the CBD. Development opportunities that have existed in the suburbs have also evaporated over the last seven years as residential development has taken their place in areas such as Richmond, Camberwell and Hawthorn. So whilst there are opportunities for tenants to access and stimulate new supply, these are concentrated in the Docklands area.
After nearly two years of negative net absorption, the last four quarters have shown increased tenant activity in the CBD. However, we believe Melbourne will continue to be a tenant’s market into 2016 and early 2017 as the backfill space comes to market, made available through Docklands relocations. In particular, there are likely to be opportunities close to Parliament Station in the Telstra and superannuation precinct into 2016 and early 2017.
Incentive levels are likely to remain where they are at around the 30% mark, with minimal overall rental growth expected over the near term, apart from some uplift in certain precincts in the CBD. Any relocation decision needs to be considered against the individual corporate drivers around forecast growth, workplace strategy, employee retention and attraction. However, there are opportunities for tenants to secure a better outcome on their lease deal through the availability of new supply in Docklands and backfill supply in the CBD and city fringe markets.
Head of Tenant Representation,QLD
+61 7 3231 1355
Corporates in Brisbane are facing a plethora of choice when considering new office locations - choice in both existing and new stock. Despite the high vacancy of 14.5% in the CBD and 15.6% in the near city market, developers are willing to build new product with a strong pre-commitment given the strong investment demand for commercial assets.
There are a number of developers that would readily commence sites in the CBD and near city on the back of a tenant pre-commitment. Sites generally require a pre-commitment level of 50% or more to attract finance. As the majority of sites in the CBD are slated for large buildings, typically a number of pre-commitments are required by the developer to start construction, unless of course a tenant is a substantial pre-commitment in their own right. The near city offers a broader range of development sites of different sizes, allowing smaller tenants (5,000sqm) to provide the necessary level of pre-commitment on their own, creating more certainty for the development to commence.
Incentives currently range from 35–42% for existing stock and 25–35% in new developments. In addition to the usual incentive of fit-out contribution and rent free/abatement, the market is seeing examples of developers taking over lease tails of tenants that are pre-committing to their buildings as well as delaying lease commencement dates. Many of the deals being done today have long lease tails meaning that demand is being brought forward and future demand is likely to be diminished unless there is significant organic growth from tenants.
Of the lease transactions taking place today, there is a trend towards a smaller space requirement. Tenants are adopting more agile work practices and many sectors have reduced headcount following the transition of the mining cycle from investment to production. So whilst there is movement in the market, in many cases it is not an expansionary move but a reduction in space. Net absorption in the CBD was negative for nine consecutive quarters before turning positive at the start of the year. However, demand is unlikely to significantly drive vacancy levels down in the foreseeable future, exacerbated by additional new supply.
When the developments at 480 Queen Street, 180 Anne Street and 1 William Street are all complete in 2015/16, not only will this add in excess of 180,000sqm of new stock into the market, there will also be significant back-fill in prime grade buildings such as Waterfront, Riparian Plaza, Central Plaza and Riverside Centre.
The average age of office buildings in the CBD is over 26 years old. This poses the question of how much of the stock is obsolete and will this have an impact on the market? We estimate that approximately 100,000sqm of the current 325,000sqm of vacant stock is obsolete and should really be taken out of the market either for a major refurbishment or conversion to an alternate use. If this stock is taken out of the market it has the potential to bring vacancy down to a more normal level of around 10.8% (market equilibrium is considered to be around 9% vacancy). However, the Brisbane market has not shown the propensity to take stock out of the market in previous market lows. For example in the early 2000s when there were significant vacancies right across the country, office buildings in Sydney and Melbourne were taken out of the market and converted to hotels or residential. This didn’t happen in Brisbane, as at that time as there wasn’t the demand for inner city living which is now an emerging trend. In addition, the State Government was a large occupier of secondary stock which created demand that was not evident in Sydney or Melbourne.
Today, there is demand for inner city residential supply and the State Government has reduced their footprint in secondary leased space with their commitment to 1 William Street. So with these two factors removed, will the Brisbane CBD see obsolete office supply taken out of the market? Residential is not the only sector that may absorb supply, education is another. With Brisbane’s proximity to Asia, the city should have a bigger share of the Asian education market. Yet there is very little representation, it is concentrated in Melbourne and to a lesser extent Sydney. These education facilities typically occupy secondary stock and create demand for additional inner city living. However, the exit of stock from the market is dependent on the owner’s point of view. The ownership profile of secondary buildings in the Brisbane CBD has a high proportion of private investors. If they are in a position to do so, they may take a long-term view of their asset and not divest, meaning the supply will remain in the market.
Even with 100,000sqm of obsolete stock, at JLL we see the market remaining in the tenants’ favour at least until 2020 and if the 46,000sqm of potential new development at 300 George Street comes to fruition, equilibrium will not return until 2024 – a large and deep window of tenant opportunity!
Head of Tenant Representation,WA
+61 8 9483 8779
The Perth commercial property market is seeing unprecedented conditions that are creating real opportunities for tenants. The CBD office market is experiencing vacancy of 19.6% (including sub-lease space available) which comparatively, is the highest peak since the early 1990s. With the significant correction in the economy as the mining boom transitions from investment to production, corporates particularly in that sector, have contracted space at a rapid rate. Perth has experienced 12 successive quarters of negative net absorption, or three years of subdued demand against a backdrop of increasing supply.
Yet at the same time, like all other Australian capital cities, there is a large pool of investment capital looking for good quality product with long-term leases, or new product with a substantial pre-commitment. There is a real opportunity for corporates with a footprint of 4,000sqm+ to take advantage of this investment cycle. Over the next 12 to 24 months, tenants will be able to secure new office premises with greater amenity, more efficient floor plates, increased transportation links and arguably a better location to what they are occupying today. Given Perth has one of the highest concentration of office buildings greater than 25 years old (61% of total stock), we predict even higher vacancy levels in secondary stock as companies seek to upgrade from old, obsolete office buildings.
In addition, these new developments are offering competitive rental levels to secure pre-commitments. So tenants are not only able to secure space that drives efficiencies and productivity in their business, but also save on total occupancy cost.
New precincts have emerged in Perth based on capital that was committed during the boom phase over the past six years. There are opportunities for tenants in new developments including Perth City Link, Brookfield Place Tower 2 and smaller boutique precincts such as 200 St Georges Terrace and 863 Hay Street. All of these ‘precincts’ offer higher levels of amenity and supporting infrastructure. Elizabeth Quay has new hotels, retail and a planned office precinct (which is subject to pre-commitment and Chevron proceeding with their new build). The State Government is supporting these major urban regeneration projects, and in the current state of the WA economy, these projects are providing a very important contribution to the construction sector.
It is almost the perfect storm for tenants with the weight of capital seeking quality office product, the government investing in development to drive growth and the highest level of vacancy the Perth market has seen since 1995. Normally in market conditions such as these, developers turn off the tap on supply and projects grind to a halt, yet with the unique nature of the investment market we are seeing projects that were approved in the upswing still going ahead.
Today there is a gap between what many corporates are paying in their existing lease and market rent. There is a prime opportunity to relocate to reduce rental levels and take cost out of the business or even renegotiate an existing lease with better terms.
It is always hard to pick the bottom of a market cycle, but the larger corporate and institutional occupiers in Perth have already felt a lot of pain and headcount reduction is starting to plateau. The window of opportunity will not last forever. However, JLL believes that rental levels still have a way to go down and incentives may still reach above 45%. We believe the market will remain in the favour of tenants until 2018/19 and only then move back into equilibrium.
The Canberra market is clearly dominated by the Federal Government sector, which represents 65% of the market and with the recent leadership uncertainty and change, there has not been clear direction in policy to warrant increased demand for space. In fact the Government has a mandate (Project Tetris) to ensure all its tenancies are optimised in terms of space, with efficiency and productivity metrics in place, effectively dampening demand.
The supply pipeline remains subdued with only 12,600sqm of new office space under construction (0.6% of the market). There are a number of development sites within Civic and the various town centres that would proceed based on a significant pre-commitment.
The vacancy rate in Canberra is currently sitting at 15.1% and incentives are 21% gross, which is the highest level seen since the late 1980s. The market conditions present an opportunity for tenants to re-structure or re-gear their lease and potentially upgrade to a better quality office building for a similar cost. However, a tenant of 5,000 - 10,000sqm looking for space in Canberra will find there are not many options for larger areas of space as the vacancies are spread right across the market, rather than concentrated into a small number of buildings. Rental growth has been subdued since 2008 and has remained flat into 2015. We are not expecting any significant uplift in the medium term.
The largest move last quarter was the consolidation of Shared Services (9,300sqm) from a number of locations into Garema Court, 140-180 City Walk, Civic. Other major tenant moves (<1,000sqm) in 2Q15 included the Australian Electoral Commission consolidating their operations and taking 5,000sqm of space in 50 Marcus Clarke Street, Civic, as well as Prime Minister and Cabinet relocating from Garema Court, 140-180 City Walk, Civic also taking space in 50 Marcus Clarke totalling 3,000sqm.
While the Commonwealth Government is expected to record limited growth over the 2015/2016 financial year, growth in the IT sector, as well as professional services, is expected to provide some organic growth for the market over the short to medium term.
The question remains has the structural nature of the real estate market in Canberra changed to be in line with the rest of the country? Historically the market has not had incentives built into lease agreements but the market conditions of the past four years have seen incentives introduced in a bid to attract tenants. We see this trend continuing however they will reduce to more traditional levels by 2018.
Like other Australian markets, investment demand is still strong for quality product, but has been focused on existing buildings as there has been very little supply additions to the Canberra market over the past several years. Opportunities do exist for larger tenants who are prepared to commit to new development sites, where there are potentially attractive incentive levels to leverage.
Regional Director,Integrated Portfolio Services
+61 2 9220 8566
Similar to the CBD markets around Australia, there is an unprecedented opportunity for tenants to create leverage, based on the weight of money chasing investment grade product in the industrial sector. With industrial yields compressing by 141 basis points to 7.23% on average nationally over the past six years, developers and investors alike are keen to create more development stock into the market. This means additional leverage for a tenant who is able to pre-commit to a new site at this point in the cycle. The development pipeline of industrial stock is below the long-term average, meaning that investors are chasing a limited supply of new development opportunities.
For those companies who are able to offer developers and investors an extended WALE in a new, premium grade asset, there are attractive deals to be negotiated. In fact, in many industrial markets rental levels in new developments may be below the existing equivalent grade assets in the market. Particularly for companies who have substantial footprints, there are a significant number of developers who would be willing to develop this into the market.
FMCG and third-party logistics companies have driven a large amount of activity in the industrial sector nationally as they seek to consolidate their distribution and warehousing requirements. A number of companies are creating industrial ‘campuses’ with centralised warehousing space in an appropriate location based on their supply chain and customer base, with additional satellite warehousing requirements as needed.
These individual companies were the impetus to bringing these estates to an investment product, and those tenants who are able to commit to a 10+ year lease structure are in a strong negotiation position. Often organisations are challenged to forecast their space requirements beyond a couple of years, meaning they may shy away from pre-commitment. However, if companies are able to understand their core requirements (even if that only represents 50% of their current footprint) and then build in flexibility around the remaining 50% of space, there are developers willing to offer attractive deals on these requirements.
Land supply is the other interesting dynamic in the industrial sector. On the face of it, Melbourne and Brisbane have significant land availability for development, whereas the Sydney market is presently more supply constrained. This will have an impact on the rental levels to the tenant or return level to the owner. While it may appear that there is plentiful supply in many markets, the desire by each individual developer to take on projects, sell land and pay for services is different. Once a tenant’s preferences for location, access, site design, building specifications and lease terms are taken into account, there are often far less options than originally thought.
In general, JLL is forecasting minimal net face rental growth in most markets for 2015, limited growth in 2016 (although upside risk is present in the very active and finely balanced Sydney market) and growth of between 2.5 – 3.5% is forecast through the cycle in the following years.
Occupiers looking for space in the west of Melbourne are likely to find landlords the most accommodating in terms of shorter lease terms, competitive incentive packages and lower overall occupancy costs. There are also far more existing options in the Melbourne west. Perth is likely to remain a tenant’s market n the short to medium term while the economy goes through a structural adjustment and more options present in various size and location ranges. Owner occupiers will also see good opportunities to sell real estate that is not core to their business in sale-and leaseback structures (both short and long term leases) with plentiful buyers for both long tenure assets as well as value-add opportunities.
The strong recent yield compression means that a development with a stable tenant and extended WALE is very marketable. Even if a company can’t commit to a new development, there is opportunity to renegotiate with the existing landlord to achieve more attractive lease terms given the leverage they are able to create with the weight of capital seeking industrial grade stock. With the current market conditions it may be opportune to use the existing dynamics rather than a lease event to develop a real estate strategy that meets long-term business requirements.
Regional Head Corporate Real Estate & Facilities Management – Asia Pacific Corporate Real Estate & Facilities Management
"A strength of Zurich’s is its global reach and experience in developing new products right around the world. We are leveraging this global capability into Asia Pacific, but we do not have a one size fits all approach, rather tailoring our products to the individual market dynamics."
What is the APAC business strategy?
Zurich has a strong growth agenda in Asia Pacific. However, we have a tailored market entry strategy to the different markets around the region which are all at different levels of maturity for us as a business. We are focused on developing niche products in individual markets based on their regulatory environment, the competitive landscape and the growth opportunity. A strength of Zurich’s is its global reach and experience in developing new products right around the world. We are leveraging this global capability into Asia Pacific, but we do not have a one size fits all approach, rather tailoring our products to the individual market dynamics.
How is your real estate strategy supporting the business imperatives of Zurich?
Given our targeted market entry approach across the different geographies in Asia Pacific, our real estate strategy also needs to be tailored in each market around the region. We need to understand where the business is succeeding and where they are focusing, and ensure that real estate is supporting this.As the markets are so dynamic and we are constantly evolving our product offering, we need a flexible real estate strategy to be able to adapt to the changing needs of the business. When we develop our real estate strategy in each market, we take into account our customer locations, employee pools, supply chain and anticipated growth activity.
The focus of my role as Regional Head of Corporate Real Estate & Facilities Management is to engage with stakeholders to understand the market dynamics and likely future demand.
When we are developing a real estate strategy for a particular location, we look at the functions we require as a business to meet the needs of the market. We might need distribution, underwriting, claim servicing skill sets in the location, which all have a particular requirement in terms of workplace. So we create an environment taking into consideration our customers, employees, functional requirements of the business and the brand positioning of Zurich in that market.
What competitive pressures is your industry facing that are shaping your real estate strategy?
Technology has played a disruptive role in the insurance industry over the past 10 years and it has radically changed the ways that we deliver products to our customers. We have seen a degree of automation and digitisation in the way we interface with customers. For example in Hong Kong, customers can take a photo of a car accident on their smart phone and start a claim immediately. The skills of our employees have needed to change in response to technology advancements so our employee population has shifted over the past five years. The expectations of these employees have also shifted and we need to create a different workplace experience and environments. We have introduced more flexibility into our employee base which has flowed through to flexibility in our office environments.
How do you deliver on both the cost and value side of the real estate equation?
I see delivering cost savings and avoidance as fundamental to our role as CRE Executives. We should be doing this 24/7, 365 days of the year to achieve an optimised portfolio for our business. It is only once you have an effective cost management strategy in place that you can turn your attention to delivering on the value side of the equation. We are focused on the traditional real estate metrics of cost per sqm, sqm per employee, operating cost per employee, and expense ratios, but also looking at internal customer service levels as well as effective utilisation rates and strategic/ financial performance. I think CRE has a role to play in contributing to employee productivity, attraction and retention, which is something that takes up a lot of my thinking time.
What do you see the key infuences on your CRE strategy in the next two years?
I think big data will have a big influence over our CRE strategy. We have an abundance of data as a global company and we need to harness the power of that data and leverage it across our entire portfolio. If we can interpret that data to make our workspace more productive and cost efficient, we will create more value for the business. The other important focus for our teams at the moment is document logistics. We want to streamline organisational activities and increase productivity again by implementing a global documents logistics strategy. This is where we see our future as an internal corporate function, to provide more than just a real estate solution.
I am passionate about sharing this vision amongst my team and encouraging the people who work for me in different countries to move beyond the traditional CRE function. We really do have the potential to help shape the business.
Tell us about your partnership with JLL
Zurich entered into a global relationship with JLL in 2013 for the provision of transaction management, lease administration and strategic portfolio advisory services, with an extension into project and development services later this year.
We were looking for a globally consistent level of expertise and for a partner who was committed to helping us grow sustainable revenue streams. We look to JLL to help us grow our insurance business, not just execute lease transactions or office fit-out.
We are partnering with JLL to develop real estate strategies that will support our business operations and this has ranged from location strategy to improving our sustainability footprint as well as lease management visibility. JLL has supported us in improving the bottom line by delivering significant cost savings across the Asia Pacific region.
In June 2015 JLL acquired Five D - Australia’s largest privately owned corporate real estate firm. The combined businesses span almost 10 million sqm of property and facilities under management across Australia, over 11,000 sites, with nearly 1,000 staff providing facilities and real estate services to 60 corporate clients. JLL now has deepened our expertise in the Federal and State Government sectors, as well as new industries such as childcare and not-for-profit. With the combined best-practices, JLL is able to provide an outstanding workplace experience to the employees of our clients, creating a safe and productive environment. We are very excited to have Steve Mackintosh and his leadership team join JLL.
The Herald and Weekly Times (a News Corporation company), publisher of Australia’s highest circulation newspaper, the Herald Sun, has continued their long standing relationship with JLL again appointing them to advise on their Melbourne Head Office. JLL has been engaged to advise HWT on negotiations for their 12,000sqm requirement to remain in Southgate or pre-commit to a new purpose built building. Reflecting the dynamic nature of the information sector, in which HWT is a major player, flexibility and agility will be key determinants in their occupancy strategy and solution moving forward.
We are very proud of Diana Jones, Senior Project Manager, in our Project & Development Services (PDS) group who has been recognised by the National Association of Women in Construction (NAWIC). Diana won the prestigious Crystal Vision Award for advancing the interests of women last month. Diana has been instrumental in driving the diversity agenda at JLL. Key result areas in the PDS business include a 68% increase in female employees from 2010 to 2015, 100% of maternity leavers returning to work over the last two years and 38% of all promotions across Asia Pacific were women in 2015 compared to 0% in 2010.
At JLL we understand how planning changes can have a substantial impact on the type of new commercial buildings available to companies looking for space. The new Macquarie Park/North Ryde Local Environmental Plan (LEP) in Sydney represents potential significant change for this office market. However, we believe that the LEP is unlikely to see its new zoning parameters translate into its intended higher density commercial development in the short to medium term due to a fundamental mismatch between the zonings proposed and demand. If you would like further information on how this LEP may impact your occupancy, please contact Guy Glenny on 0418 695 083 or email@example.com.
Listen to Michael Greene, Head of Tenant Representation in QLD, outline the key opportunities for tenants across Australia’s major office markets.
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