Dexus’ North Sydney office tower has reached practical completion, with the property giant securing final leases for the 100 Mount Street asset.
The AU$600 million (US$419 million) building, developed by Dexus in collaboration with builder Laing O’Rourke, is owned by Dexus and Dexus Wholesale Property Fund.
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The rise in demand for office space has boosted demand for properties in fringe neighborhoods, with Dexus head of office leasing Chris Hynes describing the North Sydney area as “a viable alternative” to the Sydney CBD.
“After years of limited supply, 100 Mount kicks off the next wave of quality office accommodation coming online in North Sydney,” he said.
Recent JLL analysis shows investors spent more than AU$4.6 billion (US$3.2 billion) on city fringe and suburban office space across Australia last year. While these figures are down from 2017’s high of AU$6.2 billion (US$4.3 billion), a tightly-held market was the cited cause, rather than lower demand.
ASX-listed Dexus picked up the 90-100 Mount Street site for AU$41 million (US$28.6 million) in late 2015.
The 100 Mount tower stands 39 levels and spans 41,500 square meters, and is located on the corner of Mount and Walker Streets, with a third street frontage to Spring Street.
Amid solid office market fundamentals, Dexus said its leasing is now “close to full occupancy.”
“A total of 12 new customers have been secured across 40,110 square meters at 100 Mount, taking leased space to 95 percent as the building reached practical completion, with the last vacant floor under negotiation,” Hynes said.
Signed agreements have been reached with NBN Co., Laing O’Rourke, Victory Offices, First Data Resources, Chanel, Nextgen.net and Glorietta Restaurant and Café.
Last month Dexus confirmed the details of its AUD$1.5 billion (US$1 billion) acquisition of 80 Collins Street, a move which sees Dexus now control approximately 20 percent of the tightly-held eastern core of Melbourne’s CBD.
For more on this story, go to The Urban Developer.