Qantas to lease out Sydney headquarters as restructure looms

Qantas has put two commercial properties it its Sydney headquarters up for sublease as the airline looks to cut costs in the wake of the coronavirus pandemic.

The standalone buildings, located at 10 Bourke Rd in Mascot, make up about half of the iconic Australian airline’s head office.

While Qantas will retain the head lease for another 12 years, more than 20,000sqm is up for sublease.

The lease listing comes as the airline considers moving its headquarters interstate, having revealed on Tuesday it is reworking its operations, having laid off about 8000 people during the pandemic.

Qantas staff have reportedly been told 5000 staff could be moved its current home near Sydney Airport and another 1000 from Jetstar’s offices in Melbourne, with theirconsolidated at a new “super campus” at western Sydney’s new airport among the options being considered.

News of the move is believed to have multiple states jockeying to secure Qantas operations within their borders, with Victorian Premier Daniel Andrews saying he had already spoken with Qantas CEO Alan Joyce to express his interest in welcoming Qantas’ operations to Melbourne.

The two properties make up about half of Qantas’ Sydney headquarters.

The Mascot property comprises 14,690sqm of office space across six levels in one of the buildings, with the ability to lease each floor separately, while a further 5036sqm of space is up for grabs at the property next door.

Both spaces were recently fitted out and feature open plan workstations, meeting rooms, collaboration and breakout areas.

Colliers International hasbeen appointed to manage the subleasing and South Sydney director-in-charge Michael Crombie says he expects to see interest in the commercial properties take flight.

“These are two of the best buildings in Mascot, occupied and recently refurbished to a very high standard for one of Australia’s leading companies, and are now being offered at highly competitive rates of around $450 per sqm gross effective rent,” Crombie says.

“We are seeing an increasing number of Sydney CBD and fringe tenants looking at South Sydney as a great alternative, we still have incredible access to rail and amenities, yet the rent will be the major selling point, especially when occupiers see the quality of this fit out.”