SARACEN Properties has begun scouting for tenant pre-commitment for a new A-grade eight-level office building at 161 St Georges Terrace.
Saracen Properties managing director Luke Saraceni said the proposed boutique office building, yielding 10,000 square metres of office space, offered great flexibility for medium size and smaller tenants wanting to relocate into the heart of the terrace.
Colliers International leasing executive Jeremy Robotham said while it had been hard for any of the proposed major towers to obtain the more than 10,000sq m of pre-commitment required to get a major tower off the ground, there was now a window of opportunity for boutique buildings to be constructed.
“The advantage for a boutique building is that the types of smaller tenants who are now in the market would be enough to get the building started,” he said.
“However, it is also an excellent size to accommodate some of the larger tenants who are looking for space and could occupy the majority of the building.”
Mr Robotham said tenants who were signing up for 10-year leases in existing buildings needed to remember that, by the end of the lease term, the building will be more than 25 years old and that aging building systems impact on business both environmentally and financially.
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