US oil giant stays put on Perth’s St Georges Terrace
US oil and gas giant Chevron will stay in its existing St Georges Terrace digs until the end of 2023 while Brookfield builds its new headquarters tower at Perth’s Elizabeth Quay.
Chevron has extended its lease until December 2023 at 256 St Georges Terrace, expanding its existing space while it awaits completion of its new building.
In a deal negotiated by Knight Frank’s joint heads of office leasing, Greg McAlpine and Ian Edwards, Chevron will extend its existing lease over 11,828sq m and align it with a new lease over a further 2871sqm.
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Both leases will expire in December 2023, with the new lease covering all of level one of the A-grade building. Chevron also has a lease over about 28,000sq m at the adjacent premium-grade Harry Seidler-designed QV1 office tower at 250 St Georges Terrace until 2023.
It also has space at Dynon Plaza, 905 Hay Street, where it occupies about 13,000sq m.
The deal now leaves 256 St Georges Terrace 84.5% occupied, with only level six and part of level seven still available for lease. McAlpine says when Chevron moved into 256 St Georges Terrace eight years ago it was one of the biggest leasing deals of the year and absorbed more than half the building’s available space.
He says the extension of the lease, plus the addition of another 2871sqm of level one — making a total of 14,699sq m — made it one of the biggest office leasing deals of 2019. Edwards says the reasons why Chevron first moved into the building — including the large floor space — are still relevant.
He says the market for quality A-grade and premium office space has tightened significantly over the last 18 months and Chevron has consolidated to secure the additional space in the same building.
This article originally appeared on www.theaustralian.com.au/property.