60 Martin Place sets record for Sydney's highest rent

The record for the most expensive office rent in the Sydney CBD has been achieved by Investa Commercial Property Fund and joint owner Gwynvill Group’s 60 Martin Place, at an annual net face rent of more than $1,800 per sq m.

Located in Sydney’s legal precinct, the newly built 33-level premium grade building topped out last wednesday. Three new tenants have signed leases of over 9,000 sq m on terms of between 10 to 15 years.

Flexible workspace provider International Workplace Group has agreed terms on 4,500 sq m within the building’s podium across levels one to three and plans to use them as a co-working hub called “Spaces”.

Financial services group Munich Re secured 2,600 sq m of space on level 27 and 28. While Mizuho Bank, one of Japan’s three “megabanks” will occupy levels 29 and 30 with 1,900 sq m.

Investa group executive Michael Cook said that the higher floors are leased at an annual net face rent of more than $1,800 sq m, while lower floors were averaging around a net annual face rent of between $1,200 to $1,300 a sq m.

"The interesting thing is that incentives had been stubborn, and we are into the teens. I am surprised prices have been sticky on the way down but it is a function of the fact that a lot of organisations struggle to justify the capital expenditure of a fitout," Mr Cook said.

CBD leasing agent Ray White's Anthony Harris said the leasing record at 60 Martin Place was unprecedented, with the lack of supply the reason for the high rents.

"$1800 net or $2000 gross is a new benchmark high level never seen before," he said.

Mr. Cook added that with a couple of floors set aside for a carve-out of smaller 500 sq m to 800 sq m suites, only four to five floors were still available for lease.

Image and article source: https://www.afr.com/real-estate/investa-gwynvils-60-martin-place-sets-record-for-sydneys-highest-rent-20190320-h1ckyj


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