Within a year, a revitalised Auckland office tower has gone from 30 per cent vacancy down to just 5 per cent, with the potential to be fully leased within weeks.
Six leases have been signed across multiple floors of the Shortland & Fort building at 88 Shortland St, central Auckland, over recent months.
The two remaining spaces are being marketed to prospective tenants by Matt Hockey and Chad Crenfeldt-Smith of CBRE NZ. They are a 650sq m part of level 17, which is already attracting interest, and a 383sq m fully fitted suite on level 15.
This is due to the creation of a new connection to Fort St with an award-winning lobby, upgraded amenities and new shared facilities including market-leading cyclist and end-of-trip facilities, an upgraded gym exclusively for building occupiers, refurbished conference centre facilities and refurbished Ara Eatery café and roof terrace – as well as proximity to public transport attracting companies seeking to entice employees to work in higher quality buildings and workspaces.
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The six leases include:
-Award-winning business solutions company Fusion5 has signed a lease to occupy part of level 19 and all level 20 from September. Previously located nearby on Shortland St, business expansion and a desire to occupy premium grade space has driven the move.
-Swire Shipping has leased approximately 720sq m of level 19, commencing this month, executing a project to reduce their footprint and obtain a superior quality offering on a single floor.
-On level 18, 1300sq m was leased early in 2022 to Paymark, which has moved from 1700 sq m at 162 Victoria St into a smaller footprint in a better quality office and location.
-On level 15, Ocean Network Express is set to occupy a 325sq m custom-fitted tenancy provided by the landlord, global real estate investor Deka Immobilien. An existing tenant has also expanded its space by taking an additional 344sq m via a similar custom-fitted tenancy, as has Younity, a leading recruitment firm, which has signed to occupy a 253sq m custom-fitted tenancy.
Hockey says the tsunami of leases signed over recent months at Shortland & Fort demonstrate that occupier appetite for high-quality, well-located CBD office space is growing.
“These leases are the result of a flight to quality real estate as companies seek to attract people back to working in the city in higher quality, more amenity-filled offices. Shortland & Fort has become truly compelling in a competitive people market, as tenants can see how they can attract people back into the office and retain staff here.
"We fully expect the building to be 100 per cent leased in 2023 because we have seen a major expansion of professional and financial services footprints in this building driven by staff retention and recruitment.
“The office is alive and well – and particularly high-quality and refurbished buildings such as Shortland & Fort, which underwent a $20 million revitalisation programme in 2021. All the new occupiers have come from lesser quality buildings, seeking more and better amenity space for staff to enjoy, drawing them back in to the office.
“Increasingly, office occupiers are focusing more on providing amenity to draw people in, providing additional benefits to employees in return for the time lost in commuting. Deka is particularly excited to welcome tenants to use the new lobby, cafe, outdoor deck area and level 8 business centre, all of which provide amenity that companies do not need to have within their own footprint.
"Many tenants are using the facilities in the building to get into a smaller footprint, using the meeting rooms for free, which prompts them to ask whether they need these facilities in their own offices.
“Another big attraction for companies locating in Shortland & Fort is the building’s proximity to public transport links, which backs up CBRE’s most recent Live Work Shop research."
Hockey says Britomart (soon to become Waitematā) train station entrance is only just over 160m from the Shortland & Fort entrance on Fort St. "We are certain that this building and location will only attract more attention ahead of the City Rail Link opening, as more people and organisations realise how it has improved commuter convenience.”
A number of organisations took space in the building in 2021. A total of 1960sq m was leased to leading law firm Tompkins Wake, business advisers and chartered accountants Walker Wayland and a government department across levels 17 and 14.
- Article supplied by CBRE
