Co-working boom sees Victory lease George St tower
The co-working industry is showing signs of flourishing locally with the listed Victory Offices taking space in the heart of Sydney even as rival WeWork stumbles globally and landlords take a more cautious stance towards some smaller operators.
Victory Offices, which listed last year, is at the vanguard of a series of co-working providers seeking to cash in on the co-working model even as it comes under pressure globally. Elsewhere in Sydney, Chinese property developer Poly Global is building a $500 million tower at Sydney’s Circular Quay and serviced offices group IWG has been linked to it as a potential tenant.
The group is still expanding in the Sydney even as rival WeWork has pulled back from fresh deals including in a building owned by CIC in Market St.
Industry analysts say co-working companies have driven hefty space take-up over the last several years but landlords are now cautious given the global woes of WeWork as it pulled its planned $US47 billion ($69 billion) float in New York.
Developer John Holland is defying the trend by unveiling Victory Offices as the first tenant of the boutique office and retail tower currently under development at 275 George St in the Sydney CBD.
Victory Offices secured 2600sqm of office space over levels five to 10 in the prime, 18-storey building for about $1250 per sqm. John Holland will complete the integrated fit-out.
John Holland executive general manager of development and investments Tom Roche says securing close to half of the building at this point is a great outcome.
“As development managers and builders of this one-of-a-kind workspace, we are delighted to achieve this significant milestone for building owners, Daibiru Australia, and the new tenants who can look forward to moving into their new home during the second half of next year,” Roche says.
The boutique $240 million building is John Holland’s first commercial development in Sydney’s CBD. It also has a major office project under way in Macquarie Park.
The CBD tower will provide customers column-free 500sqm floor plates, with premium end-of-trip facilities and top technological innovation. It will sport an outdoor terrace, along with a mezzanine level at the top of the building and retail opportunities at ground, first and subterranean levels.
John Holland is now in talks with several prospective tenants who are considering occupancy on other floors. The building is expected to be complete in the third quarter of 2020.
The office leasing agents for 275 George St are Cushman & Wakefield and Colliers International.