AMP Capital reduces vacancy to 0.7% in 9 months

AMP Capital reduces vacancy to 0.7% in 9 months

11 October 2019

AMP Capital’s 140 St Georges Terrace office tower has emerged as Perth’s 2019 leasing success story following a series of new deals.

Dampier Bunbury Natural Gas Pipeline (2,200sqm) and AngloGold (2,110sqm) have both committed to two whole floors each in the building on long terms leases.

They join other new tenants such as Downer (1,014 sqm), Veridian Advisory (697.1 sqm) and Talent International (282.3 sqm), reducing the 29,929sqm tower’s vacancy rate to just 0.7% – down from 30% at the start of 2019.

All the leases were negotiated by CBRE’s Andrew Denny and Luke Bray.

“Deals with 12 new building tenants totalling 8,899sqm have transformed 140 St Georges Terrace in 2019,” Mr Denny said. “No other Perth office building comes close to the success at 140 St Georges Terrace in 2019.”

“The location of the building coupled with the quality of the recent refurbishment have been key to this year’s leasing success. The ground floor lobby refurbishment has been particularly effective, providing an active and highly functional area through the strategic use of both small and large informal meeting room tables and a variety of seating choices.”

A speculative fitout strategy has been another driver of leasing activity, with AMP Capital undertaking a proactive, rolling program of new and upgraded fitouts.

“This ensured real momentum and resulted in tenants competing for the limited spaces remaining in recent months,” Mr Denny said.

CBRE’s Mr Bray noted that the flexibility of the building’s floor plates had been another driving factor.

“The square full floors of 1,100 sqm with a central core are not only highly efficient but provide natural light on all four sides,” Mr Bray said.

“Splitting the floors to suit tenants’ exact requirements was also easily achieved.”

Leasing at 140 St Georges Terrace follows US oil and gas giant Chevron deciding to stay in its existing 256 St Georges ­Terrace digs until the end of 2023 while Brookfield builds its new headquarters tower at Perth’s Elizabeth Quay.

In a deal negotiated by Knight Frank’s joint heads of office ­leasing, Greg McAlpine and Ian Edwards, Chevron will extend its existing lease over 11,828sq m and align it with a new lease over a ­further 2871sq m.

Both leases will expire in December 2023, with the new lease covering all of level one of the A-grade building. Chevron also has a lease over about 28,000sq m at the adjacent premium-grade Harry Seidler-designed QV1 ­office tower at 250 St Georges Terrace until 2023.

It also has space at Dynon Plaza, 905 Hay Street, where it occupies about 13,000sq m.

The deal now leaves 256 St Georges Terrace 84.5 per cent occupied, with only level six and part of level seven still available for lease.