GDI Property Group has secured a top floor tenant for 50 Cavill Avenue – taking the landmark Gold Coast tower close to 100% occupancy after a major refurbishment and repositioning campaign.
The entire 21st floor has been leased to Ernst Body Corporate Management – a company owned by Smarter Communities Ltd., one of Australia’s largest community management companies.
CBRE Office Leasing Director Nick Selbie negotiated the 674sqm lease, which takes the occupancy rate of 50 Cavill Avenue to 97%.
It is the latest win for GDI as the property owner and fund manager continues its strategy to reposition the building as the Gold Coast’s premier corporate address.
The Ernst Body Corporate Management lease is for a seven-year term with a five-year option. The lease commences 1 November, 2018 with a starting rental of $450psm net + outgoings and GST.
The prominent Gold Coast building has come full circle since its acquisition in 2016 by GDI from a receiver manager.
From a then occupancy rate of around 40%, 50 Cavill is now all but fully leased following a major refurbishment of approximately $10 million.
This includes the introduction of six new high speed destination control lifts, state of the art air conditioning units and the installation of end of trip and bike storage facilities. The cosmetic upgrade of the building included modernisation of all common areas, introduction of landscaping features and major upgrades of most of the building’s floor plates.
CBRE’s Mr Selbie said this has helped clinch more than 41 deals under GDI’s ownership, involving new occupiers, expanding tenants and lease renewals.
Over the same period, the average rental in the building has increased by 18% from $350psm net to $415psm net.
Tenants in the building include high profile organisations such as Channel 9, Mantra, CBRE, Maven Dental Group, Regus and Auto Guru.
Mr Selbie noted that while the overall office vacancy on the Gold Coast was 12% - with the A grade vacancy higher again at 13.1% - 50 Cavill was leading the way with a vacancy rate of just 3%.
“Tenant retention has been a very pleasing factor, with approximately 95% of the tenants who’ve had lease expiries under GDI’s ownership renewing and/or expanding,” Mr Selbie said.
“This is a testament to the quality of the refurbishment program coupled with an aligned management and leasing campaign.”
50 Cavill Avenue was completed in 1991 and is the Gold Coast’s largest office tower, comprising a total net lettable area of approximately 16,625sqm and 450 basement car parks.
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