Grosvenor Place
Step into the world of Grosvenor Place, where effective collaboration and unwavering dedication have secured its position as a premier destination in Sydney's vibrant office market.
| Client | 151 Property |
|---|---|
| Location | Grosvenor Place, 225 George Street, Sydney |
| Type | Commercial Office precinct |
| Total lettable area | 84,200sqm |
Background
Grosvenor Place, located at 225 George Street Sydney, stands as an iconic premium grade office destination designed by renowned architect Harry Seidler.
Proactively asset managed by 151 Property - Grosvenor Place has a total net lettable area of approximately 85,000 square metres.
Located adjacent to Circular Quay, the building holds a significant position in Sydney's commercial real estate market.
Features include 44 levels of office accommodation, with typical 2,000 square metre floor plates, ground floor retail plaza and car parking for 500 cars.
The Challenge
A pivotal moment arose in mid-2023 when Deloitte, occupying approximately 28,000 square metres of office space at Grosvenor Place, was nearing the end of its lease. As Deloitte’s departure loomed, the leasing campaign entered a critical phase.
Complicating matters further, the 151 Property team found itself in need of an additional member to take up leasing related duties over an interim period to ensure efforts remained on track.
The solution
On the lookout for an experienced property professional, Spillane Property Consulting was approached by 151 Property to fill the role of an in-house consultant focused solely on the leasing workstream at Grosvenor Place.
The position, initially structured as a 2-3 day per week commitment, encompassed a range of responsibilities aimed at maximising investment performance and driving leasing success.
Throughout our tenure, key responsibilities included:
Targeting income and capital growth through leasing, valuation, and development initiatives.
Assessing the risk and return of leasing proposals and presenting recommendations to senior management.
Development of leasing strategies attracting new tenants and minimising downtime.
Monitoring and assessing the office market conditions including competitor positioning and market trends.
Initially signed on for a three-month term, our engagement with 151 Property was continually extended, culminating in a successful conclusion on April 30, 2024.
Key Highlights
The opportunity to work on Grosvenor Place was immensely rewarding. The project provided a chance to engage with an iconic premium precinct renowned for its design fundamentals and enduring appeal.
Moreover, the role allowed us to focus exclusively on leasing for a high-quality asset with significant potential, leveraging insights gained from previous experiences, such as the Quay Quarter Tower development.
This led to an increase of 13% in occupancy, which equates to 14,000sqm of deals.
Conclusion
In summary, Spillane Property Consultant’s involvement with 151 Property at Grosvenor Place underscores the importance of strategic leasing efforts in maximising the value and performance of commercial real estate assets.
Through effective collaboration and dedication, we contributed to ensuring Grosvenor Place's continued success and standing as a premier destination in Sydney's office market.
Market Insights
Matt says…
As we delve into the return-to-office landscape, it's evident that momentum is steadily building, signalling a distinct flight to quality from the occupier's perspective.
But what exactly constitutes "quality" in this context? Let's break it down:
Valued amenities.
A stellar arrival experience.
Connectivity both to and within the building/precinct.
Access to public spaces.
The ESG (Environmental, Social, and Governance) offering.
An overarching sense of "generosity" in the owner's provision.
Flexibility is key for occupiers, who require adaptable floor space, tenancy areas, and footprints. Many are seeking premises that promise a meaningful uplift in their workplace environment, providing an opportunity for a fresh start.
The post-COVID market activity also offers valuable insights.
Larger occupiers are, in the main opting for smaller footprints, driven by pressure at the executive level to streamline total occupancy costs. This trend does not seem to be as prevalent for the smaller occupiers.
Interestingly, while some seek premium offerings, others prioritise value and may overlook flashy buildings. This presents an opportunity for well-maintained older and lower-grade buildings, boasting strong ESG credentials to shine.
For larger organisations, ESG targets loom large, encompassing a pathway to net zero carbon. There is an opportunity for forward thinking organisations to work with tenants to help them achieve their sustainability ambitions.
As sustainability becomes increasingly integral to business strategies, these considerations are an important piece in the decision-making processes.
