The commercial office leasing landscape in Sydney has evolved significantly, especially in the wake of the COVID-19 pandemic, with many organisations, particularly creative agencies, focusing on far more than providing employees with a functional workspace. Instead, there’s a growing demand for office spaces that offer more - replicating the comfort and convenience of home while incorporating thoughtful amenities, with an aim to entice employees back to the office. Workers now need more than just a sufficient place to work; they need a compelling reason to tackle the commute.

Over the past three to five years, companies that once found it cost-effective to have their office, studio, and industrial space all in proximity are now feeling the financial pinch. Industrial real estate prices in Sydney have skyrocketed, especially in inner-city areas, making it less feasible for businesses to maintain such spaces nearby. Instead, they’re relocating their logistics and industrial operations further out, such as to Western Sydney, while maintaining smaller, more agile office or studio spaces in prime locations.

In response to this shift, there is a rising demand for high-spec office spaces that reflect the tastes of modern tenants. It’s no longer enough to offer traditional spaces with basic finishes; tenants are seeking polished floors, high ceilings, and design-forward elements like architecturally inspired lighting and tilt panel windows, with features like landscaped gardens now becoming a powerful draw.

One such example is the newly launched 74 O’Riordan Street, which has recently undergone a stunning refurbishment to the tune of close to $11 million, encompassing everything a tenant could wish for in their next HQ, from state-of-the-art tech to energy efficient lighting and cooling systems.

For landlords navigating this new landscape, the key question is: how can they create an experience that not only attracts tenants but also keeps them engaged for the long term?

Location, Location, Location

Proximity to transport links has never been more critical. Tenants prioritise office spaces that are close to public transport and offer parking options, allowing staff and clients to commute with ease. The investment in premium end-of-trip facilities should also be a consideration – 74 O’Riordan St has taken this to the next level, opting for private shower rooms over standard stalls in its end of trip facilities - while bike racks and lockers go a long way encouraging an active commute and promoting healthy lifestyles and sustainable business practices amongst the team.

Amenities That Matter

Modern tenants expect more from their office environments than ever before. Amenities like food and beverage options, health and wellness offerings, green spaces, and dedicated collaboration areas can significantly enhance the appeal of an asset, offering a blend of work and lifestyle perks that create a space fostering creativity and engagement.

The space at 74 O’Riordan St amps up the amenities piece with integrated security and building access as well as digital motion sensor CCTV throughout on the tech side, while an amphitheatre-style Town Hall space, campus-style kitchen and café with own barista makes meeting employee needs in an HQ environment easy.

Add to this the opportunity to convert the property’s ground floor area to create a dedicated studio / showroom area, an absolute rarity in other precincts in the Sydney market.

Curated Tenant Synergies

A strategic mix of tenants can be a powerful asset for a commercial property. Whether it’s securing a flagship tenant and building a community around them or ensuring that tenants can collaborate and complement one another, synergies between tenants are key for strengthening commitment to a space.

Ultimately, the success of an office leasing strategy comes down to the experience of a space. By focusing on location, amenities, and tenant synergies, landlords can create an office environment that draws tenants in and keeps them satisfied.

In a competitive market like Sydney's, creating a sense of community and shared experience can be what really makes an asset stand out in a tenant’s search for their next workspace.

Disclaimers:

The postings by any individual on any blog do not necessarily represent the position of Savills, its strategies or opinions.