Salesforce to anchor Sydney’s tallest office building

Salesforce to anchor Sydney’s tallest office building

4 October 2019

Cloud-based US software behemoth Salesforce has signed on as the anchor tenant for Lendlease’s new Circular Quay tower in Sydney.

Valued at US$130 billion and a global leader in Customer Relationship Manager (CRM), Salesforce will name the tower Salesforce Tower Sydney. When completed in 2022, it will be Sydney’s tallest office building.

Salesforce will join a string of new tenants in an area boasting spectacular harbour views, including advisory group Deloitte which is taking up residence in the neighbouring 55 Bridge Street tower, owned by AMP Capital and developed by Multiplex.

The 53-storey building, which will have views across Sydney Harbour, will also be one of the country’s most sustainable buildings.

Set to be called Salesforce Tower Sydney and designed by international architects Foster + Partners, the 263-metre, 53-storey tower will become the city’s tallest office building. Upon completion in mid-2022, it will be highly rated in wellness, sustainability and internet connectivity.

A complicated project, the new precinct which includes the site of the former landmark Sydney pub, “Jacksons on George” is a joint venture between Lendlease, China’s Ping An Real Estate and Japan’s Mitsubishi Estate Asia.

It will have a public plaza, retail laneways, wellness facilities and a new hospitality venue at the Jacksons on George site.

Lendlease lodged its first planning proposal with the City of Sydney in 2014.

The tower and precinct join the other major redevelopments in Circular Quay including Mirvac and AMP Capital’s “orange and gold” premium office tower at 200 George Street, Poly Australia’s own commercial tower at 210-220 George Street, Yuhu Group’s hotel and residential towers at One Circular Quay and AMP Capital’s Quay Quarter.

For Salesforce, the new lease headlines its first big expansion in Sydney, since it made a debut in 2004.  The group says it will hire another 1000 employees over the next five years to join its Australian workforce of more than 2000 staff.

“Building on the success of our other precincts in Sydney’s CBD, Darling Square to the west and Barangaroo to the south, the regeneration of Circular Quay will play a key role in shaping one of the nation’s most iconic pieces of real estate,” said Kylie Rampa Lendlease chief executive of property.

“This precinct forms part of the broader renewal of Circular Quay with significant public and private investment into infrastructure and development, including Sydney Light Rail on George Street, upgrades to Circular Quay ferry terminal and other commercial projects in the area.”

Salesforce Tower Sydney is one of ten towers the company has announced globally including in San Francisco, New York and Tokyo.

The Sydney Morning Herald comments that the lease deal comes as Sydney’s office market is close to breaking point. The vacancy level of 4.1 per cent is at a 10-year low and expectations are that it will remain at that level in 2020. There is a new wave of developments coming into the CBD, although a significant proportion of the space has been pre-committed.

Property agents at Knight Frank said the Sydney CBD office market is maturing rapidly, with the depth of core investment product indicating strength in the leasing market. Al Dunlop, partner, head of office leasing for Sydney CBD at Knight Frank, said with near record low office vacancy and high commitment rates on new supply, “there’s a significant amount of the upside to occupational market fundamentals moving forward”.