The former Westpac building at 2 King William Street – which was vacant for almost 10-years – is now over 95% occupied following an influx of new tenants.
Purchased by Ed Peter and Richard Magides, the building underwent a complete refurbishment and strategic subdivision in 2014 with the vision to restore and develop the building into a premier business address in the Adelaide CBD.
The building most recently welcomed Techstars, a company which specialises in accelerating the launch and growth of startup businesses.
CBRE’s Michael Pfitzner negotiated the five-year lease term, with Techstars taking 700sqm over the newly refurbished first and mezzanine floor.
“Techstars Adelaide is the first Techstars accelerator program in Asia Pacific, with the company drawn to Adelaide’s thriving startup hub. Along with the well-presented office space, the quality amenity and location of the building were identified as key drawcards,” Mr Pfitzner said.
Following Techstars’ lease, only two office suites remain available in the building at 251sqm and 110sqm respectively. Office suites in the building are being leased for approximately $380-$400 per sqm.
Tenants of 2 King William now include Built, Morgan Stanley, Walker Corporation, IA Design and Commercial & General – the building’s Asset Manager and naming right tenant.
Mr Pfitzner and Colliers International’s James Young are the joint leasing agents for the building, who were engaged to launch the building onto a saturated commercial office market which now stands as a leasing success story.
Mr Pfitzner noted the inclusion of more compact office spaces had allowed small businesses to compete for higher accommodation space and subsequently enhanced interest in the building.
“In a tight office market, initiatives such as sub-dividing floors have found themselves ahead of the game. The market has demonstrated office suites in the 100-300sqm size bracket are generally more desirable compared to 500-700sqm suites,” Michael Pfitzner said.
“By splitting the floors at 2 King William Street, additional tenants have been provided with a high level of accommodation, excellent natural light and easy access to lifts and lobbies.”
Mark Pettman, Commercial & General Director, Asset Management added: “The refurbishment of the building was complex because of the significant structural and heritage issues we had to work with.”
“Nevertheless, we were able to achieve a high-quality finish with improved services including latest efficient floor-by-floor VRV air conditioning system, new tenancy electrical services, lighting and a major seismic upgrade. The refurbishment was one step; however, getting the building full was another challenge altogether.”
“We knew we were facing a 15-year high in terms of CBD vacancies, so we worked very closely with CBRE and Colliers to research the market and match the requirements of tenants seeking high-quality, B-grade office space,” said Mr Pettman.
“We created numerous smaller tenancy options as part of floor-sub-division plans that could be easily further modified to suit each specific tenant requirement, thus creating tenancies ranging from 100sqm to 500sqm, broadening the catchment of potential tenants. Our success was also based on meeting the market, both in terms of asking rents and incentives as well as utilising various test-fit plans to respond to a tenant’s specific requirements.”
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.