Demand for A and B Grade office space in the Sydney market strengthened during FY17, driven by the withdrawal of space due to the construction of the Sydney Metro and residential conversion opportunities.
- Capitalising on the strength of demand, Dexus adopted a strategy to subdivide the building’s 800 square metre floor plates to create fitted suites
- Since July 2015, Dexus has:
- Leased over 9,000 square metres to achieve 98.4% occupancy as at 30 June 2017
- Achieved face rental growth of 7.6% and effective rental growth of 27%
- Decreased incentives from >20% at October 2015 to <5%, with some recent deals at zero
- Dexus adapted quickly to changing market conditions to drive both effective and face rental growth, as well as reduce incentives
Dexus’s suite strategy has broadened the leasing profile to more than 50 customers, providing the opportunity for regular market rent reversions.
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