Dexus adopted a fitted suites strategy to capture ongoing demand from small space users and maximise cash flows.
- Demand for office space from small to medium sized businesses has continued to increase in recent years
- To capture this demand, DEXUS adopted a suites strategy whereby it speculatively fitted out suites across vacant floors in its office portfolio
- Dexus more than doubled its production of suites in FY16, building 110 suites over 25,152 square metres
- Of the 110 suites built in FY16, 84 have been leased across 18,832 square metres with average downtime of only 3 months
- The take up of suites has been strong at properties like 45 Clarence Street, 56 Pitt, Australia Square, as well as premium properties such as 1 Farrer and Grosvenor Place
- By undertaking a speculative fitout ahead of leasing the space, DEXUS has been able to minimise downtime and leverage its scale to procure more cost effective fitouts
- Dexus is well placed to capture market upside on suite tenancies in Sydney and Melbourne as leases expire over the the next two to five years.